TR 07: Broadcasting Stations and Other Media

The purchase of tangible personal property by broadcasting stations for use in their operations inside the City of Boulder is subject to City sales tax. Personal property includes, but is not limited to, satellite dishes, transmitting towers, other electronic receiving or transmitting equipment, tapes, compact discs and equipment used in the studio, business office and general station facilities.

Tax must also be paid on the purchase price of promotional and advertising items. The purchase of items for resale would be exempt from City sales tax, provided that sales tax is collected on the price charged to the end user. The sale of on-air advertising spots would not be subject to sales/use tax.

Example:

1. A Boulder radio station holds an event at the Boulder Reservoir. The radio station purchases t-shirts to be sold at the event and advertising flyers to promote the event. The radio station must pay sales tax on the flyers, but not on the t-shirts, because they were purchased for resale and sales tax will be collected on the price charged at the event.
   
   
2. A Boulder radio station purchases two transmitting towers, one to be delivered and installed in Boulder the other in Nederland. Sales tax is due on the tower delivered and installed in Boulder. The tower installed in Nederland is not subject to Boulder sales/use tax, provided that the tower is delivered to Nederland. If both towers were shipped to the radio station in Boulder, then ownership passed in Boulder and both towers would be subject to Boulder sales/use tax.

Last Updated on Wednesday, 11 July 2012 12:31