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Ca BOE Taxes and Recording Studios
Old 18th July 2015
Here for the gear

Ca BOE Taxes and Recording Studios

I own a recording studio in CA and it's time to pay our Sales and Use taxes. I have found regulation 1527 which defines what should be taxed, but I am having a hard time figuring out what exactly (a)(2) is explaining.

Regulation 1527. SOUND RECORDING.

Reference: Sections 6006, 6010–6012, and 6362.5, Revenue and Taxation Code.


(1) Tax does not apply to the charges for the making of an original recording on recording media if the recording media is not delivered to the customer or to any person at the direction of the customer, and title is retained by the studio. If, however, the recording studio agrees to furnish finished records, acetates, tapes or other recording media, tax applies to the sale of such tangible personal property but, effective January 1, 1976, the measure of tax is limited to the sale price of the unprocessed recording media. Recording media includes wax, tape, wire, or other material used to embody sound.

(2) Rental of Studio Facilities. To the extent that the studio which is making the recording rents tangible personal property to the customer, tax applies in the same manner as it does to rentals generally.

We don't sell tangible items, but we do rent out the recording studio as a daily booking or by the hour. My first question is, does renting a recording studio (basically a room) count as tangible personal property? And second, I am having the hardest time finding an answer as what rentals generally do tax wise. Any help would be greatly greatly appreciated!!!
Old 18th July 2015
Lives for gear

It sounds to me like section 2 is talking about renting gear to the customer while they're in your studio. You should probably talk to an accountant.
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