Master recordings include feature films, corporate films, television programs and commercials, recordings of live performances and other projects intended for commercial distribution.
Master recordings do not include recordings such as wedding videos, videos shown on social media (such as YouTube, Facebook and Instagram) and other recordings not sold to the public. Video games are not considered master recordings, even if they contain recorded audio or visual sequences.
Live program broadcasts include radio or television content that is not pre-recorded and that is broadcast by a producer of cable programs or a radio or television station licensed by the Federal Communications Commission.
Producers can claim an exemption from sales and use tax on purchases of items and services used to produce master recordings or live program broadcasts for ultimate sale if the following conditions are met:
The exemption includes:
The exemption does not include:
|Master recording by producer||Exempt|
|Copy of master recording||Taxable|
|License of all or part of the rights of a master recording||Exempt|
|Right to broadcast||Exempt|
The Texas Film Commission certifies qualified media production locations and qualified persons through the Media Production Development Zone Program. The program authorizes a temporary sales tax exemption for certain items and services bought by a qualified person to be used at a qualified media production location. The exemption can include nonresidential repair remodeling services such as construction, maintenance, improvement or renovation.
Contact the Texas Film Commission for information on the application process.
For more information, see Rule 3.350, Master Recordings and Broadcasts.