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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
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375.0000 Motion Pictures—Regulation 1529
Annotation 375.0783
(b) On and After September 22, 1988
(1) Generally
375.0783 Electronic Press Kits—Making Copies. A taxpayer manufactures copies of electronic press kits (500–600 video tapes per customer) from a master provided by a movie studio and ships them to television studios throughout the country. The electronic press kit is either a ¾ or ½ inch video tape prepared by movie studios prior to the release of a new film. The tape will consist of several interviews with the star or co-stars and various clips from the movie. There are gaps or blank time spots between every interview and movie clip. These gaps are left intentionally so that local TV stations will be able to impose their film reviewer on the tape and edit and customize the tape as they wish prior to the broadcast.
The taxpayer is not performing any qualified production services since it does not perform any work in connection with the production of the press kit. The studio which provides the press kit master to the taxpayer has completed production of the press kit. The taxpayer merely manufactures duplicate tapes for the exhibition or broadcast by the television station. Additionally, section 6010.6(b)(4) specifically excludes from the "qualified production services" definition "services or other work to manufacture release prints or to duplicate tapes for exhibition or broadcast." 1/21/97.