Ezel / Tax Rulings / TX
TX 9002L0983C06 Sales and/or Use Tax (State,Local,MTA) 1990-02-22

Was projecting live camera images of a performance onto a screen taxable when the event was not recorded?

Short answer: No. Live projection without recording was a nontaxable service, so the provider paid tax on its equipment and materials. If the provider recorded the event on film or tape, the entire customer charge was taxable.

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This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 provider used a camera to enlarge a live performance by projecting the images onto a screen without recording the event.

That live-only projection service was not taxable. As a nontaxable service provider, the business had to pay sales or use tax on all equipment and materials it used.

If the business recorded the live event on film or tape, the result changed: the total charge to the customer was taxable under the video-photographer provisions cited in the letter.

Common questions

Was live projection taxable? No, when there was no recording.

Who paid tax on the equipment and materials? The service provider.

What if the event was recorded? The total customer charge was taxable.

Citations and references

  • 34 Tex. Admin. Code Rule 3.350(a)(6) and (d) (Video photographers)

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller February 22, 1990

Dear ***:

Thank you for your letter dated February 2, 1990, requesting
written confirmation of the information that you received from
Chris Conyers concerning your "video amplication" services.

You stated in our telephone conversation that you use a camera to
amplify a live performance by projecting-images onto a screen.
You do not record the event on video tape or film. This service,
as you described it, is not taxable. As the provider of a nontax-
able service you must pay sales or use tax on all equipment and
materials that you use to provide your service.

If you do record a live event on film or tape, the total charge to
your customer is taxable. Please refer to sections (a)(6) and (d)
of Rule 3.350 for the tax responsibilities of video photographers.

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 me if you have any additional questions.
You may write me, call toll free 1-800-252-5555 (ext. 3-4685) from
anywhere in the United States or phone 512/463-4685.

Sincerely,
Julie Pesl
Tax Correspondence

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