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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 375.0886.250

(b) On and After September 22, 1988

(1) Generally

375.0886.250 Negative Cutting. Charges for negative cutting are nontaxable qualified production services when performed on a qualified motion picture. The company is the consumer of the materials used in providing the service and should pay sales tax reimbursement to its vendors or pay use tax when purchasing such materials. When providing nontaxable qualified production services, no tax applies to a charge for materials that are transferred to the customers incidental to the performance of the services. 2/21/89.