17 NCAC 07B .3107          MOTION PICTURE PRODUCTION FIRMS

(a)  Sales to motion picture production firms of cameras, film and props or building materials used in the construction of sets which are used in the actual filming of movies for sale, lease or rental are exempt from sales and use tax.  The sale of chemicals and equipment used to develop and edit film which is used to produce release prints is exempt from sales and use tax.

(b)  Sales of machinery and equipment and other property to motion picture production firms for use in receiving tangible personal property and other activities such as raw materials storage, finished goods storage, distribution or administration is subject to the applicable statutory state and local sales or use tax.

(c)  The purchase of film by a movie production company which becomes a component part of release prints that are actually produced and sold, leased or rented to its customers are exempt from sales and use tax.  Also, chemicals which are used to develop release prints that are for sale, lease or rental are exempt from tax.

 

History Note:        Authority G.S. 105‑164.4; 105‑164.6; 105‑262; 105-164.13; Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;

Eff. June 1, 1992;

Amended Eff. October 1, 2009; October 1, 1993.