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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 375.0985
(b) On and After September 22, 1988
(1) Generally
375.0985 Production and Videotaping of a Broadcast. A taxpayer is retained by a client, a computer manufacturer, to produce a video broadcast which will be aired to the client's employees nationwide. The three and one-half hour video broadcast will announce the client's new computer products to the client's sales and support staff. The taxpayer will be the producer and director of the broadcast and, as such, is responsible for the broadcast's content and physically directing it "on line" during the airing.
The videotapes that the taxpayer prepares and transfers to the client qualify as qualified motion pictures and the taxpayer's charge is nontaxable. However, the exclusion from tax is not applicable to the sale of release prints or tapes for exhibition or broadcast. Therefore, if the taxpayer provides the client with duplicate tapes for exhibition or broadcast, tax applies to charges for such tapes. (Section 6010.6(c)(2).) 7/5/89.