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This Ruling has been modified and superseded by PS 92(13)

Ruling 89-111


The production of videos does not meet the definition of manufacturing production process pursuant to section 12-426-11b of the Regulations of Connecticut State Agencies and does not qualify for the manufacturer's exemption from sales and use tax for purchases or leases of machinery.

The lease of equipment by a video production business that uses the equipment to produce corporate/industrial programs, television commercials, informational and training products, etc., for businesses, independent producers, advertising agencies and institutions is subject to the sales and use tax pursuant to section 12-426-25 of the Regulations of Connecticut State Agencies (copy enclosed).

Section 12-407(2)(i)(W) of the Connecticut General Statutes, as amended by Public Act No. 89-251 imposes a sales and use tax on advertising services except as related to the development of media advertising. Since an advertising agency's fee for television advertising is not taxable, the purchase of video productions by an advertising agency for television advertising is subject to the sales and use tax.


September 26, 1989