State Rev & Tax Code Section 6378 allows a partial (5.25%) sales tax exemption for the purchase of teleproduction and post production equipment to businesses primarily engaged in teleproduction and post production activities when that property is used 50 percent or more in those activities (as described in Code 512191 of the North American Industry Classification System Manual.) This exemption is taken by the seller and passed on to the buyer of the equipment at the point of purchase.
Most major vendors should be familiar with the procedures for filing for the exemption. If you find a vendor that is not, you may try one of the following steps:
- 1. A buyer can provide a copy of Regulation 1532(pdf), which interprets and expands on Section 6378.
- 2. The buyer could suggest to the seller that they call the Board of Equalization information line (1-800-400-7115) and speak to a representative about Regulation 1532.
- 3. The buyer could write a letter to the Board of Equalization describing their business and use of equipment that they intend to purchase and ask for an opinion as to whether the Teleproduction exemption applies to their purchases. Assuming they respond in the affirmative, the buyer could then show this letter to the skeptical seller.*
- 4. It would also help if the buyer prints out the exemption certificate located at the end of regulation 1532 on their letterhead. This might lend credence to the authenticity of their request for the partial exemption.
*If you choose number 3) above, letters should be addressed to the attention of the District Principal Auditor (it’s not necessary to provide a name). Letters should include a description of their business activities, their permit number (if any – a seller’s permit is not required in order to use the exemption), a description of the property being purchased, and how that property will be used.
The San Francisco office is located at:
121 Spear St, Suite 460
San Francisco, CA 94105
Their phone number is 415-356-6600