Nevada Administrative Code › Chapter 372 - Sales and Use Taxes › APPLICATION OF TAX › Section 372.365 - Producers

Current through June 11, 2024
1. As used in this section, the term
			 "producer" means a film or video producer, recording studio, postproduction
			 edit facility, or audio record and mix facility, or any combination
			 thereof.
2. The gross receipts of a
			 producer from engaging in the business of applying creative services to the
			 development and communication of an idea, concept, opinion, perspective, point
			 of view, image, sound or message, are not subject to the sales tax.
3. Purchases of tangible personal property by
			 a producer are subject to the sales tax if such property is acquired for use in
			 the operation of the business and will not be resold in the normal course of
			 the business. As an example of the application of this section, if a producer
			 purchases capital equipment, materials, supplies or other devices for use in
			 the business, the purchase is subject to the sales tax.
4. When a producer engages in rendering
			 creative services by creating production materials or rendering creative
			 production services, including the development of advertising materials on
			 behalf of a client for delivery to the print or broadcast media, the gross
			 receipts from such creative services are not subject to the sales tax if the
			 charges for those services are separately stated on the invoice. The producer
			 is the consumer, not the retailer, of any tangible personal property which is
			 used incidentally in rendering the creative service. The sales tax applies to
			 the purchase of tangible personal property by a producer. As an example of the
			 application of this subsection, if a postproduction facility creates an
			 information video about a hotel and as a part of the creative process, the
			 postproduction facility purchases various props, graphics, and stock footage,
			 performs writing and research, and adds music and sound effects to communicate
			 the idea, concept, opinion, perspective, point of view, image, sound or
			 message, and then the postproduction facility prepares a film or tape of the
			 finished concept, which the producer provides to the hotel, the sale of the
			 first rendering videotape is not subject to the sales tax because the substance
			 of the transaction is the expression of the idea, concept, opinion,
			 perspective, point of view, image, sound or message and the rendering of
			 creative services. In this example, the postproduction facility must pay the
			 sales tax at the time of purchase on all materials for use in the production of
			 the videotape.
5. The gross
			 receipts from any duplication, copying or regeneration of the original
			 expression of the idea, concept, opinion, perspective, point of view, image,
			 sound or message beyond the first rendering are subject to the sales tax. As an
			 example of the application of this subsection, if a postproduction facility
			 creates an information video about a casino, the first rendering is not subject
			 to the sales tax because the substance of the transaction was the performance
			 of creative services but if the casino wishes to purchase 400 copies of the
			 videotape, the gross receipts from the sale of each duplicate, copy or
			 regeneration after the first rendering are subject to the sales tax.
6. The sales tax does not apply to any
			 charges for supervision, consultation, research, postage, express, telephone
			 and telegraph messages, transportation and travel expenses, or talent fees, if
			 the charge is stated separately on the invoice or is part of a charge for other
			 services.
Added to NAC by Tax
				Comm'n, eff. 11-12-93
NRS
				  360.090,
				  372.725