Section 42.3. Property

(a) Property directly used. The following are examples of equipment, parts and accessories, and materials and supplies which, when predominantly used directly by a licensed commercial or educational station in the process of broadcasting are exempt from tax. This exemption applies even though the equipment is part of a mobile unit.

(1) Tower and antenna equipment.

(2) Transmitter equipment, including technical equipment located at transmitter sites.

(3) Studio and technical equipment, including technical equipment located at the studio; such as, cameramen’s lights, equipment for the processing and developing of film, film editing equipment, video tape, microphones and props.

(4) Photograph and film processing equipment, including, but not limited to cameras, film, darkroom equipment and film developers.

(5) Video tape recording equipment.

(6) Studio production equipment; that is, equipment used for the production of commercials or programs for advertisers.

(b) Property not directly used. Property in the following categories is not directly used in the process of broadcasting and the purchase or use of such property is subject to tax:

(1) Furniture and fixtures, other than studio props.

(2) Administrative materials, supplies and equipment.

(3) Mobile units are licensed vehicles and are not considered to be directly used in the process of broadcasting. However, any technical equipment included in subsection (a) would be exempt from tax.

(c) Mixed use of property. Where a single unit of property is put to an operating use in two or more activities, the property is exempt from tax if during more than 50% of its operating use it is directly used in the process of broadcasting.

The provisions of this § 42.3 adopted May 24, 1974, effective May 25, 1974, 4 Pa.B. 1032.

Notation

Cross References

This section cited in 61 Pa. Code § 42.4 (relating to procedure for claiming the exemption).