N.J. Admin. Code § 18:24-20.2

Current through Register Vol. 56, No. 24, December 18, 2024

Section 18:24-20.2 - Taxability

(a) If after the original commercial advertising motion picture negative is finally edited and completed outside of New Jersey, and after one or more duplicate negatives and/or one or more fine grain master positives are made outside this State, and the original negative, with or without duplicates or fine grain masters is brought into New Jersey, the State compensating use tax is due. Use tax is imposed regardless of the nature or extent of the subsequent use, including storage, of the original negatives, duplicate negatives, or fine grain master positives.

(b) Under the circumstances described in subsection (a) above, whether original negative, duplicate negative, or fine grain master positive, the State compensating use tax shall be computed upon the raw stock cost of the film, plus the cost of laboratory development of each original negative, duplicate negative or fine grain master positive brought into the State. The raw stock cost of the film is the price paid for the quantity of the film brought into the State as if unexposed. The cost of laboratory development is the compensation paid to an outside laboratory. If the development process is performed in and by the user's own laboratory and/or affiliated laboratory, the cost of laboratory development may be determined from its own records or in lieu thereof, the cost shall be the compensation charge for similar development by another outside laboratory in the same area at the time of development. Where the duplicate negative or fine grain master positive is made by an outside laboratory which also furnishes the raw stock film, the cost with respect to such duplicate negative or fine grain master positive shall be the laboratory's total charge therefor.

(c) Where, after the commercial original production video tape is finally edited and completed outside of the State of New Jersey, and after one or more original production duplicates and/or one or more air master tapes applicable to both high band and low band video tape recording, are made outside the State, the original production video tape with or without said original production duplicates or air master tapes is or may be brought into New Jersey for various purposes including the storage thereof, the person bringing the same into the State is subject to use tax on the use of such original production video tapes, original production duplicates, or air master tapes at the time each of them is brought into the State regardless of the nature or extent of the subsequent use of each of said original production tapes, original production duplicates, or air master tapes.

(d) Under the circumstances described in (c) above, whether original production video tape, original production duplicate, or air master tape, use tax shall be computed upon the raw stock cost of the tape plus the cost of machine time (processing of video tape) of each original production video tape, original production duplicate, or air master tape brought into the State. The raw stock cost of the tape is the price paid for the quantity of tape brought into the State without the cost of machine time. The cost of machine time is that paid to an outside laboratory. If the machine time is in and by the user's own laboratory and/or affiliated laboratory, the cost of the machine time may be determined from its own records or, in lieu thereof, the cost shall be the compensation for similar cost of machine time by another outside laboratory in the same area at the time rendered. Where the original production duplicate or air master tape is made by an outside laboratory which also furnishes the raw stock tape, the cost with respect to such original production duplicate or air master tape shall be the laboratory's total charge therefor.

N.J. Admin. Code § 18:24-20.2

Amended by 48 N.J.R. 824(a), effective 5/16/2016