Sales Tax?

[J. Anthony Gonzales]

Just curious: Is sales tax charged on motion picture film stock from Kodak in California? And do they charge sales tax at the labs for processing?

 

Thanks.

[Stephen Williams]

Just curious: Is sales tax charged on motion picture film stock from Kodak in California? And do they charge sales tax at the labs for processing?

 

Thanks.

 

Hi,

 

Unless its sent to another state, you have to pay sales tax, has been my limited experiance in the US.

 

Stephen

[John Pytlak RIP]

Just curious: Is sales tax charged on motion picture film stock from Kodak in California? And do they charge sales tax at the labs for processing?

 

Thanks.

 

It depends upon the sales / VAT tax law in each state / country.

 

Here is what the Kodak catalog says:

 

http://www.kodak.com/US/plugins/acrobat/en...g/contact04.pdf

 

Taxes: Please note that sales, use, or other taxes measured by sales or receipts are not included in the prices shown. Where applicable, such taxes will be billed if a valid exemption certificate is not furnished.

Where a valid exemption certificate is furnished, tax will not be billed unless we can determine that the purchase will be used in a taxable manner. Omission of tax should not be construed as a basis for exemption. If used in a taxable manner and no tax was billed by Kodak, the customer is required to remit applicable taxes directly to the taxing authorities.

 

For example, if you buy film in New York City, you pay the state and local sales tax. However, if you are using the film as part of a final product that will be taxed, and have a NY State Sales Tax ID Number (Exemption Certificate), you can declare that the film is for resale, and not pay tax. But you will have to charge sales tax to the final customer, and give that tax money to the state sales tax office. I think the same applies for film used for a registered charity.

[Mark Allen]

Just a note about sales tax. If you live in california, you are required to pay sales tax on everything you buy - even if it is outside of california. They have not been very adamant about it until the proliferation of internet purchases.

 

This is also, however, the reason that there is the 3% tax law for post-production services. (Meaning you DON'T pay 5.25% of the normal tax when purchased for post production purposes. For filmstock, I would imagine that any stock used for Answerprints would be in that cateogry.)

 

Perhaps the production lobyists need to get together and cut sales tax as well or face even more production leaving California.

 

But - on your state tax returns, you are provided a place to claim your purchases from out of state.