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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 375.1295

(b) On and After September 22, 1988

(1) Generally

375.1295 Video Productions. A taxpayer produces commercial videos, educational videos, promotional videos, and personal celebration (weddings, etc.) videos. The taxpayer also provides productions and post production services to clients. Its production includes "complete production" which includes shooting, editing, and duplication of the video tapes services.

Based on the information provided, the commercial videos, educational videos, and promotional videos produced are "qualified motion pictures" as defined in Regulation 1529. Thus, tax does not apply to the taxpayer's transfer of the initial video tape produced for the client. Rather, the taxpayer is the consumer of, and tax applies to the sale to the taxpayer of, tangible personal property which is used in producing the videotape including the blank tape the taxpayer purchases from its vendor and transfers to its client. Tax does apply to the taxpayer's sales of duplicate tapes.

On the other hand, the videotapes described as "personal celebration (weddings, etc.) videos" are not qualified motion pictures. Sales tax applies to the sale of those videotapes.

When the taxpayer performs production and post production work for clients in connection with the clients' production of all or any part of a qualified motion picture, tax does not apply to the taxpayer's charge, because the taxpayer performs "qualified production services" as defined in Regulation 1529. On the other hand, if the production and post production work is in connection with the production of a motion picture or videotape produced for private noncommercial use, tax applies to the taxpayer's charge regardless of whether the taxpayer or the client provides the materials upon which the taxpayer performs the work. 06/11/96.