A new
sales tax rate (Section 6378) (click and look under
"Manufacturers, Producers, Processors") was put into effect by the
California Legislature on January 1, 1999. From that time on there is
no 5% state sales tax if a
product is purchased to be used in many traditional California
businesses, including post-production audio for film and television.
Only local and county taxes must be paid, equaling 3.25%.
As of January 1, 2001 sales tax for the entire state has dropped
by 0.25%. The teleproduction equipment industry is now only exempt
from the 4.75% state sales tax. 3.25% sales tax must still be charged
for California residents.
All California post-production facilities or individuals involved
in post-production must pay the 3.25% as sales are made from Los
Angeles County.
Reid