Was recording motion pictures onto customer-owned video-tape cartridges a taxable sale or the recorder's use of the tapes?

Plain-English summary

Recording motion pictures onto video-tape cartridges owned by airline customers, then delivering the recorded cartridges back to those airlines, was a taxable sale by the recording company under section 6006(b) as then cited.

The Board did not treat the transaction as the recording company's taxable use of the customer-owned tapes under section 6006(g)(2). The taxable activity was the company's recording, fabrication, or processing service performed on tangible personal property.

The supporting mini-memorandum does not print Annotation 435.1745, but CDTFA's official annotation page links this exact PDF and describes the same October 16, 1978 video-tape transaction and holding.

Citations and references

• California Revenue and Taxation Code sections 6006(b) and 6006(g)(2) (as cited)

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/435-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/435-1745.pdf

Original ruling text

STATE OF
CALIFORNIA

MINI-MEMO

TO:

SUBJECT:

DATE:

Walt Pagel
Pasadena District Office

B--- & H--- Video-tape
agreements with airlines

10/16/78

STD 100-B (REV. 9-7

M
E
S
S
A
G
E

This is to confirm our telephone conversation today that B--- & H---’s recording of motion pictures on videotape cartridges owned by its airline customers, and delivery of those cartridges to the airlines are Sec. 6006(b) sales by B--- & H--- rather than Sec. 6006(g)(2) uses of the tapes by B--- & H---.

RETURN TO

SIGNED

ADDRESS

PHONE

Philip R. Dougherty

Legal

485-2705

R
E
P
L
Y

SIGNED

ADDRESS

DATE

SEND PARTS 1 AND 3 INTACT – PART 3 WILL BE RETURNED WITH REPLY