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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 375.1317
(b) On and After September 22, 1988
(1) Generally
375.1317 Videotape Production—Mock Trials. Videotapes are made of mock trials in one of two formats, either live presentation or prerecorded for presentation to the mock jury. When the mock trial is a live presentation, the production company videotapes the entire mock trial. In the instances when the trial is prerecorded for jury presentation, the production company only videotapes the mock jury deliberation. The production company provides its own equipment and personnel.
If the intended use of the mock trial videotapes are for instructional purposes, for example, the mock trial is made in conjunction with a class on courtroom techniques or a class on jury analysis, then they would be considered "qualified motion pictures." However, if the tapes are produced for distribution to the participants as a record of their participation, then these productions would appear to be made for private or noncommercial use and would not be considered "qualified motion pictures."
Thus, if these videos are produced for commercial purposes and are delivered to the customer prior to their exhibition or broadcast to the intended audience, they meet the definition of "qualified motion pictures" for purposes of Regulation 1529. The producer of videotapes considered to be "qualified motion pictures" is the consumer of tangible personal property consumed in the production of the videotapes and sales or use tax applies to purchases of tangible personal property consumed in the production of the videotapes. The transfer of the tape to the customer is not subject to sales or use tax. 12/4/95.