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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 375.0901

(b) On and After September 22, 1988

(1) Generally

375.0901 Qualified Production Services. The following charges are for nontaxable qualified production services when used in the production of a qualified motion picture pursuant with Regulation 1529(b)(2)(B)(1).

(1) Charges for furnishing computer discs containing graphics.

(2) Dub tapes for any intermediate use on the qualified motion picture before the release print is made. On the other hand, release dubs provided clients are subject to tax if sold at retail.

(3) Charges for storyboards.

The following items are taxable when purchased for use in making a "qualified motion picture."

(1) Purchase of still photographs.

(2) Purchases of paintings, models or artwork unless transferred in connection with "qualified production services" (e.g. models transferred in connection with special effects).

(3) Film which is used to produce a multi image slide show except any film actually sold to the client and not used in producing the end product. 3/1/90.