Did master-record treatment cover leased syndicated-program tapes used directly in radio broadcasts rather than to make copies?

Plain-English summary

California said leased audiotapes carrying syndicated radio programs qualified for the partial treatment provided by Regulation 1527. The definition of master tapes and records expressly included media produced for syndicated radio programs.

The memorandum did not restrict the rule to a master used to reproduce other copies. It also covered tapes or records actually used by radio stations in broadcast.

Common questions

Did the tapes have to be used to make copies?

No.

Could tapes used directly in broadcast qualify?

Yes.

What transaction did the source address?

Leasing audiotapes that supplied syndicated radio programs to clients.

Citations and references

• California Sales and Use Tax Regulation 1527(b)(1) — definition including syndicated radio programs applied

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/527-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/527-1250.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

527.1250

To:

Mr. E. Wayne Hopkins
Out-of-State District Office

From:

Ronald L. Dick
Senior Tax Counsel

Date:

March 10, 1992

Subject:

Based on the information sent in by __, we believe that _ provides syndicated radio programs to its client. The lease of the audiotapes by ___ qualifies for the partial exemption from tax as provided by Sales and Use Tax Regulation 1527, Sound Recording. Subdivision (b)(1) of the regulation defines “master tapes and master records embodying sound” to include “tapes or records which are produced for use as radio commercials or other advertising, syndicated radio programs or for educational purposes.” We have not limited the partial exemption to tapes or records which are used to make the copies but have construed the regulation to include the tapes or records actually used in the broadcast. If you have further questions regarding this, feel free to contact me directly.