Texas Register, Volume 9, Number 66, Pages 4703-4756, September 4, 1984 Page: 4,738
4703-4756 p. ; 28 cm.View a full description of this periodical.
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3.309. Electrical Transcriptions, Recording Studios,
Producers.
(a) Definitions The following words and terms,
when used in this section, shall have the following mean-
ings, unless the context clearly indicates otherwise
(1) Electrical transcription-Any master tape
[phonograph record], disc, [tape,] or other item, not In-
cluding motion picture film or video tape, capable of
reproducing sound when used in conjunction with elec-
trical equipment and manufactured to produce copies or
other recordings.
(2) Producer-A person who, acting for himself
or under contract with another, is responsible for produc-
ing an electrical transcription Generally, producing in-
cludes being responsible for preparing or furnishing, or
having the right to approve the rehearsing, recording, edit-
ing, mixing, dubbing, talent direction, engineering; place
of recording, and otherwise exercising control over the
recording of an electrical transcription
(3) Recording studio/company-A place, loca-
tion, [or] facility, or service company where or through
which sound is transferred to an electrical transcription
and in or through which are provided such items as micro-
phones, amplifiers, speakers, recording turntables, record
players, tape recorders, mixers, splicers, and personnel
to operate this equipment
(b) (No change )
(c) Tax responsibilities of a recording studio
(1) Sales tax is not due on the charge made by
a recording studio/company to a producer for the rental
or procurement of a [the] studio, [its] facilities, and [stu-
dio] personnel when an electrical transcription is produced
by [at] the production studio/compan) [by studio per-
sonnel] under the supervision or direction of the producer
Under these circumstances, the recording studio/company
is not renting the equipment but is providing services, the
charge for which includes facilities, personnel, account-
ing, budgeting, janitorial services, etc
(2) If the recording studio/company does not
furnish the personnel to operate the equipment and relin-
quishes total operational control of the equipment to the
producer, then a taxable rental occurs A taxable rental
also occurs if studio personnel merely render incidental
services such as maintenance and repair or if equipment
is rented to the producer for use at a location other than
the studio A separately stated charge for an operator is
not taxable See 3 294 of this tile (relating to Rentals
and Leases of Taxable Items)
(3) [Sales tax is due on the total amount charged
a client when a recording studio acts as a producer and
contracts to provide the customer a master record, origi-
nal record, finished record, tape, or other electrical tran-
scription No deductions are allowed for charges for
studio facilities, labor or service costs, or any other
charges or expenses incurred prior to the completion of
production Even though such costs may be itemized in
the billing to the client, they may not be deducted from
the total selling pulce of the electrical transcription
[(4)] Sales tax is due on the total amount charged
a client when a recording studio/company contracts to
provide processing of an electrical transcription by edit-
ing [cutting],'mixing, dubbing, etc , not as a part of para-
graph (1) or paragraph (2) of this subsection No deduc-tion is allowed for charges or expenses incurred by the
studio/company in providing the processing
(4) Sales tax is due on the total amount charged
for making copies or other recordings of the electrical
transcription.
(d) Tax responsibilities of a producer
(1) Sales tax is not due on the amount charged
by the producer to produce the electrical transcription.
[Sales tax is due on the sale of an electrical transcription
by a producer When a contract is for the production and
sale of an electrical transcription, it is immaterial that title
or possession to any item utillhed b} the producer in com-
pleting production does not pass to the customer, such
as when a customer contracts to have a finished record
produced and the producer retains the master record This
is a sale of the finished electrical transcription and tax
is due on the total amount charged the customer ]
(2) The producer may purchase tax-free any item
that is purchased to produce the electrical transcription
which becomes an ingredient or component part of the
electrical transcription. [The sales price of an electrical
transcription produced for a customer must include all
costs inclurred prior to completion of production No
deduction may be claimed for expenses such as studio fa-
cilities, rental charges, talent, labor, or any other expenses
incidental to production of the item ]
(3) Sales tax is due on the total amount charged
for making copies of other recordings of the electrical
transcription.
(e) [Sales to producers The sale of a master, stamp-
er, or finished record to a producer b a third party is
subject to sales tax
[(f)] Seller's responsibilities Sellers of electrical
transcriptions should refer to #i3 286 of this title (relat-
ing to Seller's Responsibilities)
This agency hereby certifies that the proposal has
been reviewed by legal counsel and found to be within
the agency's authority to adopt
Issued in Austin. Texas, on August 29, 1984TRD-848921
Bob Bullock
Comptroller of Public AccountsEarliest possible date of adoption
October 5, 1984
For further information, please call (512) 475-2148
34 TAC 3.312
The Comptroller of Public Accounts proposes amend-
ments to 3 312, concerning persons engaged in the
graphic arts or related occupation The amendments
are necessary to incorporate the legislative change to
the Tax Code regarding taxability of repairs Repair,
remodeling, maintenance, and restoration of tangible
personal property are now taxable
Billy Hamilton, revenue estimating director, has de-
termined that for the first five-year period the rule will
be in effect there will be no fiscal implications for stateSeptember 4, 1984
Texas
RegisterI _ _
9 TexReg 4738
i
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Texas. Secretary of State. Texas Register, Volume 9, Number 66, Pages 4703-4756, September 4, 1984, periodical, September 4, 1984; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth243620/m1/36/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.