New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 20 - COMMERCIAL ADVERTISING FILM NEGATIVES, ORIGINAL PRODUCTION VIDEO TAPE, AND SIMILAR MATERIALS › Section 18:24-20.2 - Taxability

Current through Register Vol. 56, No. 14, July 15, 2024
(a) If after the original commercial advertising
				motion picture negative is finally edited and completed outside of New Jersey, and
				after one or more duplicate negatives and/or one or more fine grain master positives
				are made outside this State, and the original negative, with or without duplicates
				or fine grain masters is brought into New Jersey, the State compensating use tax is
				due. Use tax is imposed regardless of the nature or extent of the subsequent use,
				including storage, of the original negatives, duplicate negatives, or fine grain
				master positives.
(b) Under the
				circumstances described in subsection (a) above, whether original negative,
				duplicate negative, or fine grain master positive, the State compensating use tax
				shall be computed upon the raw stock cost of the film, plus the cost of laboratory
				development of each original negative, duplicate negative or fine grain master
				positive brought into the State. The raw stock cost of the film is the price paid
				for the quantity of the film brought into the State as if unexposed. The cost of
				laboratory development is the compensation paid to an outside laboratory. If the
				development process is performed in and by the user's own laboratory and/or
				affiliated laboratory, the cost of laboratory development may be determined from its
				own records or in lieu thereof, the cost shall be the compensation charge for
				similar development by another outside laboratory in the same area at the time of
				development. Where the duplicate negative or fine grain master positive is made by
				an outside laboratory which also furnishes the raw stock film, the cost with respect
				to such duplicate negative or fine grain master positive shall be the laboratory's
				total charge therefor.
(c) Where, after
				the commercial original production video tape is finally edited and completed
				outside of the State of New Jersey, and after one or more original production
				duplicates and/or one or more air master tapes applicable to both high band and low
				band video tape recording, are made outside the State, the original production video
				tape with or without said original production duplicates or air master tapes is or
				may be brought into New Jersey for various purposes including the storage thereof,
				the person bringing the same into the State is subject to use tax on the use of such
				original production video tapes, original production duplicates, or air master tapes
				at the time each of them is brought into the State regardless of the nature or
				extent of the subsequent use of each of said original production tapes, original
				production duplicates, or air master tapes.
(d) Under the circumstances described in (c)
				above, whether original production video tape, original production duplicate, or air
				master tape, use tax shall be computed upon the raw stock cost of the tape plus the
				cost of machine time (processing of video tape) of each original production video
				tape, original production duplicate, or air master tape brought into the State. The
				raw stock cost of the tape is the price paid for the quantity of tape brought into
				the State without the cost of machine time. The cost of machine time is that paid to
				an outside laboratory. If the machine time is in and by the user's own laboratory
				and/or affiliated laboratory, the cost of the machine time may be determined from
				its own records or, in lieu thereof, the cost shall be the compensation for similar
				cost of machine time by another outside laboratory in the same area at the time
				rendered. Where the original production duplicate or air master tape is made by an
				outside laboratory which also furnishes the raw stock tape, the cost with respect to
				such original production duplicate or air master tape shall be the laboratory's
				total charge therefor.