A recent opinion has been issued by the New York Department of Taxation and Finance regarding how to treat tools, equipment, materials, supplies and services used in producing master recordings of movies, TV shows, and music on compact disc. The creation of these items is a production of tangible personal property for sale and the production company was allowed to take exemptions under rules geared towards manufacturers. Machinery and equipment used directly in the production process are exempt whether they are bought or leased. The manufacturer exemptions can also be used through the post-production process. Post-production can include the editing, dubbing and mixing elements as well as the equipment used in these processes such as computers, software, and equalizers. (Deloitte & Touche LLP (Advisory Opinion), New York Commissioner of Taxation and Finance, TSB-A-02(50)S, September 27, 2002)