(a) The sale, lease, or rental or storage, use, or other consumption of the following items are exempted from the taxes imposed by this chapter:
(1) tangible personal property that will become an ingredient or component part of:
(A) a motion picture, video, or audio master recording, a copy of which is sold or offered for ultimate sale, licensed, distributed, broadcast, or otherwise exhibited for consideration; or
(B) a broadcast by a producer of cable programs or by a radio or television station licensed by the Federal Communications Commission;
(2) tangible personal property that is necessary or essential to and used or consumed in or during:
(A) the production of a motion picture, video, or audio master recording, a copy of which is sold or offered for ultimate sale, licensed, distributed, broadcast, or otherwise exhibited for consideration; or
(B) the production of a broadcast by or for a cable program producer or by or for a radio or television station licensed by the Federal Communications Commission; and
(3) except as provided by Subsection (c), services that are necessary and essential to and used directly in a production described by Subdivision (2)(A) or (B).
(b) The exemption includes:
(1) cameras, film, and film developing chemicals that are necessary and essential to and used or consumed in a production described by Subsection (a)(2)(A) or (B);
(2) lights, props, sets, teleprompters, microphones, digital equipment, special effects equipment and supplies, and other equipment that is necessary and essential to and used or consumed directly in a production described by Subsection (a)(2)(A) or (B); and
(3) audio or video routing switchers located in a studio that are necessary and essential to and used or consumed directly in a production described by Subsection (a)(2)(A) or (B).

Terms Used In Texas Tax Code 151.3185

  • Effects: includes all personal property and all interest in that property. See Texas Government Code 312.011
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Personal property: All property that is not real property.
  • Personal property: means property that is not real property. See Texas Tax Code 1.04
  • Property: means real and personal property. See Texas Government Code 311.005
  • Tangible personal property: means personal property that can be seen, weighed, measured, felt, or otherwise perceived by the senses, but does not include a document or other perceptible object that constitutes evidence of a valuable interest, claim, or right and has negligible or no intrinsic value. See Texas Tax Code 1.04

(c) The exemption does not include:
(1) office equipment or supplies;
(2) maintenance or janitorial equipment or supplies;
(3) machinery, equipment, or supplies used in sales, transmission, or transportation activities;
(4) machinery, equipment, or supplies used in distribution activities, unless otherwise exempted by this section;
(5) taxable items that are used incidentally in a production described by Subsection (a)(2)(A) or (B); or
(6) the following taxable items, regardless of whether they are used incidentally in a production described by Subsection (a)(2)(A) or (B):
(A) telecommunications equipment and services;
(B) transmission equipment;
(C) security services;
(D) motor vehicle parking services; and
(E) food ready for immediate consumption.
(d) A production described by Subsection (a)(2)(A) or (B) does not include a production for broadcast that is not intended to be broadcast to either the general public or to cable television service subscribers or paying customers.
(e) The sale of a motion picture, video, or audio master recording by the producer of the master recording is exempt from the taxes imposed by this chapter.
(f) Tangible personal property that is sold to an entity to which 47 C.F.R. § 73.624(b) applies is exempt from the taxes imposed by this chapter if the property is necessary for the entity to comply with 47 C.F.R. § 73.682(d).
(g) Tangible personal property that is sold to an entity to which 47 C.F.R. § 73.404(a) applies is exempt from the taxes imposed by this chapter if the property is necessary to provide the broadcast service described by 47 C.F.R. § 73.403 or 73.404.
(h) In this section, “master recording” means the principal media on which images, sound, or a combination of images and sound are first fixed and from which copies are commercially made available for sale, license, distribution, broadcast, or exhibition for consideration.

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