Many items purchased, used, rented or repaired during the studio master recording process are exempt from the 6.25 percent state sales and use tax , as well as local sales and use taxes. These exemptions are included in the Texas Tax Code Section 151.318, and the Comptroller of Public Accounts Administrative Rules 3.300 and 3.309. A producer may claim 100 percent exemption from state and local sales and use taxes on qualifying machinery and equipment purchased, repaired, leased or rented and used directly in the production of audio recording masters. If the equipment is exempt, any parts, repair or maintenance labor is also exempt.
Similar exemptions are available to film producers.
For information, visit the Texas Film Commission web site. This group also includes items such as sheet music, batteries, track sheets and all formats of recording tape used in the recording process. Added by Acts 1999, 76th Leg. 1467, 2.20, eff. Oct. 1, 1999.