California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2.5 - Uniform Division of Income for Tax Purposes Act › Section 25137-8.1 - Motion Picture and Television Film Producers and Television Networks - Apportionment of Income

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 This regulation applies to motion picture and television film producers,
					 producers of television commercials, and to television networks. The provisions
					 of this regulation shall also apply to independent television stations to the
					 extent they are members of a chain of commonly owned stations all of which
					 operate as network affiliates or all of which are unaffiliated with a network
					 but which operate collectively in purchasing properties for telecast or in
					 marketing air time, or which operate as a producer. This regulation applies to
					 taxable years beginning on and after January 1, 1982, and before January 1,
					 2011.
(b) Definitions.
(1) "Film" means the physical embodiment of a
					 play, story or other literary, commercial, education or artistic work; as a
					 motion picture, video tape, disc or other similar medium, except that it does
					 not include news or sports films produced for telecast.
"Film" does not include video cassettes or discs intended
						for home viewing.
(2) Each
					 episode of a series of films produced for television shall constitute a
					 separate film notwithstanding that the series relates to the same principal
					 subject and is produced during one or more television seasons.
(3) "Release date" means the date on which a
					 film is placed in service. A film is placed in service when it is first
					 telecast or exhibited to the primary audience for which the film was created.
					 Thus, a motion picture theater film is placed in service when it is first
					 publicly exhibited for entertainment purposes and an educational film is placed
					 in service when it is first exhibited for instructional purposes. Each episode
					 of a television series is placed in service when it is first telecast. A film
					 is not placed in service merely because it is completed and therefore in a
					 condition or state of readiness and availability for telecast or exhibition, or
					 merely because it is telecast or exhibited to prospective exhibitors, sponsors,
					 or purchasers, or it is shown in a "sneak preview" before a select
					 audience.
(4) A "film" is deemed to
					 be tangible personal property.
(5)
					 "Rent" shall include license fees for the exhibition or telecast of
					 films.
(6) "Tangible personal
					 property" used in the business whether owned or rented, shall include but is
					 not limited to sets, props, wardrobes, and other similar equipment.
(7) A "subscriber" to a subscription
					 television telecaster is the individual residence or other outlet that is the
					 ultimate recipient of the transmission.
(8) "Telecast" means the transmission of an
					 electronic signal by radiowaves or microwaves or by wires, lines, coaxial
					 cables, wave guides or other tangible conduits of
					 communication.