Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
527.0000 SOUND RECORDING—Regulation 1527
527.0100 Compact Disks for Radio Commercials. Subdivision (b)(1) of Regulation 1527 defines "master tapes and master records embodying sound" to mean tapes, records, and other devices, not including mothers, stampers, or finished records utilized by the recording industry in making recordings embodying sound. The term includes tapes or records which are produced for use as radio commercials or other advertising, syndicated radio programs, or for educational purposes.
Accordingly, if a taxpayer produces and sells compact discs to be used for radio commercials, the taxable measure with respect to the retail sale of such compact discs is limited to the sales price of the unprocessed recording media (compact discs). 2/5/90.