Were fees for videotaping legal proceedings and providing recordings to the parties subject to Florida sales tax?

Plain-English summary

Videotaping a legal proceeding and giving the recording to a party in that proceeding was an exempt professional service. The Department compared the work to court-reporting services and transcripts furnished to the parties, where the physical recording was an inconsequential element of the professional service.

The videographer remained the consumer of the blank tape and owed tax when buying it. A videotape of the proceeding sold to someone who was not a party to the proceeding was a taxable sale.

What this means for you

The customer's relationship to the proceeding mattered. A service deliverable for counsel or another party was exempt; resale of the same recording to an outside third party was not.

Common questions

Q: Was the videography fee taxable when billed to a party? No.

Q: Did the physical videotape make the service taxable? No, for the combined professional-service charge.

Q: Who paid tax on the blank tape? The videographer.

Q: Was a sale to a nonparty taxable? Yes.

Citations and references

• Fla. Stat. § 212.05(1)(a)1.a. — retail sales of tangible personal property
• Fla. Stat. § 212.08(7)(v)1. — professional and personal services
• Fla. Admin. Code r. 12A-1.001(2)(c) — court reporters and proceeding transcripts
• Askew v. Bell, 248 So. 2d 501 (Fla. 1st DCA 1971)
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 01A-077

Original ruling text

SUMMARY

QUESTION 1: Is the fee for the videotaping and/or
distribution of recordings of legal proceedings subject to
sales tax?

ANSWER 1 - Based on Facts Below: Fees for the videotaping
and/or distribution of recordings of legal proceedings is
exempt as a professional service, when the videotape is
provided to parties of the subject legal proceedings.

Dec 27, 2001

Re: Technical Assistance Advisement 01A-077
Sales and Use Tax - Sale of Videotaped Legal Proceedings
Sections: 212.05(1)(a)1.a., 212.08(7)(v)1., Florida
Statutes
Rules: 12A-1.001(2)(c), Florida Administrative Code
XXX (herein Taxpayer)
SSN #: XX

Dear :

This is in response to your request, dated November 13, 2001,
for the Department's issuance of a Technical Assistance
Advisement ("TAA") concerning the above referenced matter. Your
letter has been carefully examined and the Department finds it
to be in compliance with the requisite criteria set forth in
Chapter 12-11, F.A.C. This response to your request constitutes
a TAA and is issued to you under the authority of section
213.22, F.S.

Facts

You have provided the following facts:

You videotape events which are mostly legal proceedings, such as
depositions, sworn or unsworn statements, independent medical

examinations, site inspections, etc., all of which may be
presented as evidence in a court of law. You then deliver the
recordings (videotapes) to the parties involved in the
proceedings. The sample invoice provided indicates that the
client is charged one fee, which includes the cost of the
videotape and the charge for performing the service.

Taxpayer's Position

You have provided the following as your position:

It is your opinion that you provide an exempt service.
Therefore, the recordings, as the end result of the service are
also exempt.

Furthermore, you state that the tapes that you distribute are
official recordings not unlike the transcripts created by the
stenographer (court reporter) that is usually also present at
such legal proceedings (depositions, sworn statements, etc.).
You also note that the language, as contained in Rule 12A1.001(2)(c), F.A.C., provides stenographers an exemption for
their services. You indicate that videography and stenography
are so much alike (in legal proceedings) that attorneys order
copies of both and present them as evidence to the court in the
same manner. Therefore, it is your opinion that videography of
legal proceedings should enjoy the same exemption as stenography
of legal proceedings.

Requested Advisement

The fee for the videotaping and/or distribution of recordings of
legal proceedings, is exempt from sales tax as a professional
service.

Law

Section 212.05(1)(a)1.a., F.S., provides:

It is hereby declared to be the legislative intent that
every person is exercising a taxable privilege who engages
in the business of selling tangible personal property at

retail in this state, including the business of making mail
order sales, or who rents or furnishes any of the things or
services taxable under this chapter, or who stores for use
or consumption in this state any item or article of
tangible personal property as defined herein and who leases
or rents such property within the state.

(1) For the exercise of such privilege, a tax is levied on
each taxable transaction or incident, which tax is due and
payable as follows:

(a)1.a. At the rate of 6 percent of the sales price of each
item or article of tangible personal property when sold at
retail in this state, computed on each taxable sale for the
purpose of remitting the amount of tax due the state, and
including each and every retail sale.

Section 212.08(7)(v)1., F.S., provides:

(v) Professional services.-

1. Also exempted are professional, insurance, or personal
   service transactions that involve sales as inconsequential
   elements for which no separate charges are made.

Rule 12A-1.001(2)(c), F.A.C., provides:

The taking of dictation by a public stenographer and
stenographic transcriptions thereof are exempt as
professional services. Charges for attendance and the
stenographic recordings of proceedings at a trial, hearing,
conference, or similar function by a court reporter are
exempt as professional services. Charges made by court
reporters for transcripts of proceedings are likewise
exempt as professional services when furnished to parties
to the proceedings. Charges for transcripts to third
persons who are not parties to the proceedings for which
the reporter was engaged are taxable. (See Rules 12A-1.062
and 12A-1.072, F.A.C.)

Discussion

Section 212.05(1)(a)1.a., F.S., provides that "[i]t is hereby
declared to be the legislative intent that every person is
exercising a taxable privilege who engages in the business of
selling tangible personal property at retail in this state...."
Thus, transactions involving the sale of tangible personal
property in Florida are subject to tax unless a specific
exemption from taxation is provided in Chapter 212, F.S.

Section 212.08(7)(v)1., F.S., provides an exemption for
"professional... service transactions that involve sales as
inconsequential elements for which no separate charges are
made."

Charges made by court reporters for transcripts of proceedings
are exempt as professional services when furnished to the
parties to the proceedings. See Rule 12A-1.001(2)(c), F.A.C;
Askew v. Bell, 248 So.2d 501 (Fla. 1st DCA 1971). Charges made
by your company for videotaped legal proceedings are also exempt
as professional services when the videotaped materials are
furnished to the parties in the legal proceeding. Videotapes of
legal proceedings, however, are taxable when sold to third
persons who are not parties to the court proceedings.

Response

Based on the facts, law, and analysis as presented, a
determination is made that the fee for the videotaping and/or
distribution of recordings of legal proceedings is exempt as a
professional service, when the videotape is provided to parties
of the subject legal proceedings.

As a result, you are the consumer of the tape used in providing
this professional service. Therefore, tax would remain due on
the sales price of each videotape purchased by you for this
purpose.

This response constitutes a Technical Assistance Advisement
under section 213.22, F.S., which is binding on the Department
only under the facts and circumstances described in the request
for this advice, as specified in section 213.22, F.S. Our

response is predicated upon those facts and the specific
situation summarized above. You are advised that subsequent
statutory or administrative rule changes or judicial
interpretations of the statutes or rules upon which this advice
is based may subject similar future transactions to a different
treatment from that which is expressed in this response.

You are further advised that this response, your request, and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of section 213.22, F.S. Confidential information
must be deleted before public disclosure. In an effort to
protect confidentiality, we request that you provide the
undersigned with an edited copy of your request for Technical
Assistance Advisement, the backup material and this response,
deleting names, addresses, and any other details that might lead
to identification of the taxpayer. Your response should be
received by the Department within 15 days of the date of this
letter.

Sincerely,

Shehla A. Milliron
Senior Attorney

Control # 47597