Downloaded Movies Intangible. New York imposes tax on the sale of a film in tangible form and on prewritten software delivered electronically, the department said. However, sales of music and photographs delivered electronically are not considered sales of software. Rather, they are sales of intangible property not subject to sales tax.

Similarly, the department said, sales of videos delivered electronically via the Internet or downloaded to a customer's computer are not subject to sales tax. Moreover, downloaded videos are not considered information and entertainment services subject to tax.

The department noted the this opinion may not apply to facts where Internet viewing circumstances differ from the present facts.

Text of the advisement (TSB-A-08(22)S) is on the Web at <http://www.tax.state.ny.us/pdf/advisory_opinions/sales/a08_22s.pdf>.