TX 8408L0621D05 Sales and/or Use Tax (State,Local,MTA) 1984-10-31

Was a Texas charge for videotaping monitored television news reports taxable when either the provider or customer supplied the tape?

Short answer: Yes. The Comptroller treated the videotaping charge as taxable processing whether the provider or customer supplied the tape. The letter also allowed credit for tax paid when purchasing blank tape.

Apply this to your situation

This page answers the general question as of 1984. Ezel answers yours, under current Texas tax law, with citations.

Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Texas Comptroller said the charge for videotaping monitored television news reports was taxable processing.

The answer did not change based on who supplied the tape: the service provider or the customer. The letter also allowed the addressee's client to take credit for tax paid when purchasing blank tape.

The letter cited Section 151.005(8) and Rule 3.300 but did not reproduce them.

What this means for you

Media-monitoring and recording businesses

Under this 1984 letter, the videotaping component was taxable processing even when the customer furnished the physical tape.

Blank-tape purchasers

The source allowed credit for tax paid on the blank tape purchase.

Accountants and tax professionals

The letter refers to a combined monitoring and videotaping service but expressly decides the videotaping charge. It does not separately state the treatment of a standalone monitoring charge.

Common questions

Q: Was the videotaping charge taxable?
A: Yes, as taxable processing.

Q: Did it matter who supplied the tape?
A: No.

Q: Was any credit available for blank tape?
A: Yes. The letter allowed credit for tax paid when purchasing the blank tape.

Q: Did the letter separately decide a monitoring-only charge?
A: No.

Citations and references

Section 151.005(8) (as cited in the letter)
Rule 3.300 (as cited in the letter)

Source

STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
Opinion: https://star.comptroller.texas.gov/view/8408L0621D05

Original ruling text

October 31, 1984

Dear ***:

Thank you for your recent letter regarding the charge you make for
monitoring and video taping news reports.

The charge for video taping is taxable processing whether you or the
customer provides the tape. The applicable provisions of law are Section
151.005(8) and Rule 3.300, a copy of which I am enclosing. Your client
may take credit for any tax paid when purchasing blank tape.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact US if you have additional questions. You may
call toll free 1-800-252-5555 from anywhere in Texas.

Sincerely,

Tax Administration Division

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