Nev. Admin. Code § 372.365 — 372.365

NAC 372.365    Producers. ( NRS
360.090 , 372.725 )
1.  As used in this section, the term
“producer” means a film or video producer, recording studio, postproduction
edit facility, or audio record and mix facility, or any combination thereof.
2.  The gross receipts of a producer from
engaging in the business of applying creative services to the development and
communication of an idea, concept, opinion, perspective, point of view, image,
sound or message, are not subject to the sales tax.
3.  Purchases of tangible personal property
by a producer are subject to the sales tax if such property is acquired for use
in the operation of the business and will not be resold in the normal course of
the business. As an example of the application of this section, if a producer
purchases capital equipment, materials, supplies or other devices for use in
the business, the purchase is subject to the sales tax.
4.  When a producer engages in rendering
creative services by creating production materials or rendering creative
production services, including the development of advertising materials on
behalf of a client for delivery to the print or broadcast media, the gross
receipts from such creative services are not subject to the sales tax if the
charges for those services are separately stated on the invoice. The producer
is the consumer, not the retailer, of any tangible personal property which is
used incidentally in rendering the creative service. The sales tax applies to
the purchase of tangible personal property by a producer. As an example of the
application of this subsection, if a postproduction facility creates an
information video about a hotel and as a part of the creative process, the
postproduction facility purchases various props, graphics, and stock footage,
performs writing and research, and adds music and sound effects to communicate
the idea, concept, opinion, perspective, point of view, image, sound or
message, and then the postproduction facility prepares a film or tape of the
finished concept, which the producer provides to the hotel, the sale of the
first rendering videotape is not subject to the sales tax because the substance
of the transaction is the expression of the idea, concept, opinion,
perspective, point of view, image, sound or message and the rendering of
creative services. In this example, the postproduction facility must pay the
sales tax at the time of purchase on all materials for use in the production of
the videotape.
5.  The gross receipts from any duplication,
copying or regeneration of the original expression of the idea, concept,
opinion, perspective, point of view, image, sound or message beyond the first
rendering are subject to the sales tax. As an example of the application of
this subsection, if a postproduction facility creates an information video
about a casino, the first rendering is not subject to the sales tax because the
substance of the transaction was the performance of creative services but if
the casino wishes to purchase 400 copies of the videotape, the gross receipts
from the sale of each duplicate, copy or regeneration after the first rendering
are subject to the sales tax.
6.  The sales tax does not apply to any
charges for supervision, consultation, research, postage, express, telephone
and telegraph messages, transportation and travel expenses, or talent fees, if
the charge is stated separately on the invoice or is part of a charge for other
services.
(Added to NAC by Tax Comm’n, eff. 11-12-93)