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H0497aaS............................................by REVENUE AND TAXATION
SALES TAX REBATE - Adds to existing law to provide a sales and use tax
rebate for the sales or use of tangible personal property used directly by
a media production company in a media production project; to provide
procedures; to define terms; to provide qualification requirements; and to
provide for recapture.
01/27 House intro - 1st rdg - to printing
01/30 Rpt prt - to Rev/Tax
02/15 Rpt out - rec d/p - to 2nd rdg
02/16 2nd rdg - to 3rd rdg
02/22 3rd rdg - PASSED - 68-1-1
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
Henderson, Jaquet, Kemp, LeFavour, Loertscher, Martinez, Mathews,
McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali(Sali), Sayler, Schaefer, Shepherd(2), Shepherd(8),
Shirley, Skippen, Smith(30), Smith(24), Smylie(Luker), Snodgrass,
Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- Cannon
Absent and excused -- Lake
Floor Sponsor - Kemp
Title apvd - to Senate
02/23 Senate intro - 1st rdg - to Loc Gov
03/03 Rpt out - to 14th Ord
03/08 Rpt out amen - to 1st rdg as amen
03/09 1st rdg - to 2nd rdg as amen
03/10 2nd rdg - to 3rd rdg as amen
03/14 3rd rdg as amen - PASSED - 21-10-4
AYES -- Andreason, Broadsword, Bunderson, Burkett, Cameron, Corder,
Darrington, Fulcher, Goedde, Kelly, Keough, Langhorst, Lodge,
Malepeai, Marley, McGee, Richardson, Schroeder, Stennett, Sweet, Werk
NAYS -- Coiner, Compton, Gannon, Hill, Jorgenson, Little, McKenzie,
Pearce, Stegner, Williams
Absent and excused -- Brandt, Burtenshaw, Davis, Geddes
Floor Sponsors - Langhorst, Corder & Bunderson
Title apvd - to House
03/15 House concurred in Senate amens - to engros
03/16 Rpt engros - 1st rdg - to 2nd rdg as amen
03/17 2nd rdg - to 3rd rdg as amen
03/22 3rd rdg as amen - PASSED - 65-4-1
AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Chadderdon,
Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Garrett, Hart, Henbest, Henderson, Jaquet,
Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin,
McKague, Miller, Moyle, Nielsen, Pasley-Stuart, Pence, Raybould,
Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- Barrett, Cannon, Harwood, Mitchell
Absent and excused -- Nonini
Floor Sponsor - Kemp
Title apvd - to enrol
03/23 Rpt enrol - Sp signed
03/24 Pres signed - To Governor
03/30 Governor signed
Session Law Chapter 219
Effective: 07/01/06; 07/01/11 Sunset Clause
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 497
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 63-3622TT, IDAHO CODE, TO PROVIDE A SALES
4 AND USE TAX REBATE FOR THE SALES OR USE OF TANGIBLE PERSONAL PROPERTY USED
5 DIRECTLY BY A MEDIA PRODUCTION COMPANY IN MEDIA PRODUCTION, TO PROVIDE
6 PROCEDURES, TO DEFINE TERMS, TO PROVIDE QUALIFICATION REQUIREMENTS AND TO
7 PROVIDE FOR RECAPTURE; AND PROVIDING A SUNSET DATE.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is
10 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
11 ignated as Section 63-3622TT, Idaho Code, and to read as follows:
12 63-3622TT. MEDIA PRODUCTION TAX REBATE. (1) An eligible media production
13 company which purchases tangible personal property used directly in a media
14 production and which makes qualifying media production expenditures may
15 qualify for a rebate of sales or use taxes paid on such purchases if the pur-
16 chaser develops, with such tangible personal property or qualifying media pro-
17 duction expenditures in Idaho, the production in Idaho of a media production
18 and if the purchase or use of such tangible personal property is subject to
19 the sales and use tax. To be eligible for the rebate pursuant to this section,
20 a media production company shall submit to the department of commerce and
21 labor information required by the director of the department of commerce and
22 labor to demonstrate conformity with the requirements of this section and
23 shall have expended or will expend a minimum of two hundred thousand dollars
24 ($200,000) on qualifying media production expenses in Idaho within a consecu-
25 tive thirty-six (36) month period. Application for the rebate shall be made
26 within thirty-six (36) months of the expenditure qualifying for the rebate.
27 The department of commerce and labor shall determine eligibility of the com-
28 pany and shall report this information to the state tax commission in a manner
29 and at a time upon which the department of commerce and labor and the tax com-
30 mission shall agree. The department of commerce may charge an application fee
31 not in excess of five hundred dollars ($500) for a media production company's
32 application to be qualified for the sales tax rebate pursuant to this section
33 (2) To receive the rebate pursuant to this section, the media production
34 company shall apply to the state tax commission on forms and in the manner the
35 commission requires. The application shall include a certification of the
36 amount of expenditures made in Idaho with respect to the purchase of tangible
37 personal property by the media production company by the director of the
38 department of commerce and labor or the director's designee. The rebate shall
39 be paid within sixty (60) days from the date the tax commission receives a
40 qualified application. If the rebate is not paid within that period, the
41 amount owed to the taxpayer shall accrue interest at the rate provided in sec-
42 tion 63-3045, Idaho Code.
43 (3) As used in this section:
2
1 (a) "Media production" is defined as the production of programs through a
2 variety of techniques and media including, but not limited to, live action
3 camera work, animation, computer-generated imagery or other recorded work
4 during the process of preproduction, production and postproduction, that
5 are intended to be exhibited in theaters, licensed for exhibition on tele-
6 vision or cable stations or networks, licensed for or produced for sale or
7 rental to home or commercial viewing markets or a future viewing or
8 listening medium. Products of media production include, but are not lim-
9 ited to, feature films, videos, television series or movies, television or
10 theatrical commercials, industrials and education programs or shows, video
11 or computer games, and documentaries, but shall not include production of
12 news and athletic event programming, family or personal productions, film-
13 ing of live staged events to which tickets are sold or any material of an
14 indecent or obscene nature as provided in chapter 41, title 18, Idaho
15 Code. "Media production" includes "preproduction," "production," and
16 "postproduction."
17 (b) "Postproduction" means the final stage in a media production after
18 principal photography, including editing, the addition of sound/visual
19 effects and musical scoring, mixing and dubbing and distributing.
20 (c) "Preproduction" means the planning stage in a media production after
21 the project is financed and before principal photography or actual shoot-
22 ing commences, including script treatment and editing/rewriting, schedul-
23 ing, set design and construction, casting, budgeting and financial plan-
24 ning, and scouting or selection of locations.
25 (d) "Production" means the general process of putting a media production
26 together, including casting, set construction, principal photography and
27 shooting.
28 (e) "Qualifying media production expenditures" in Idaho includes, but is
29 not limited to, wages from eleven dollars ($11.00) per hour to one hundred
30 twenty-five dollars ($125) per hour, fringe benefits, commissions or fees
31 and per diem expenses for labor paid in Idaho; contract labor paid in
32 Idaho; equipment rentals and purchases during preproduction, production
33 and postproduction such as grip, lighting, editing, camera, communication
34 and computers; film, videotape stock or digital recording medium and proc-
35 essing and transfer costs; expendables such as gaffer's tape or gel;
36 wardrobe and costuming; makeup and hairdressing supplies; set construction
37 and set decoration materials, prop rentals and purchases, including lumber
38 and construction materials, tools and equipment; stage, location site and
39 office space rentals, equipment and expendables; vehicle, truck, boat and
40 aircraft rentals, leases and purchases; food purchased for cast and crew;
41 airfare or other travel purchased through an Idaho based travel agency;
42 insurance and completion bond coverage purchased through an Idaho based
43 agency; lodging expenses for hotels, motels, apartments and houses; motor
44 vehicle expenses, including gas, oil, servicing and reimbursed mileage;
45 laundry and dry cleaning; and shipping services.
46 (4) Any rebate paid shall be subject to recapture by the commission at
47 one hundred percent (100%) in the event that the tax incentive criteria are
48 not met at the project site during the project period or in the event that the
49 media production company did not otherwise qualify. Any recapture amount due
50 under this section shall be a deficiency in tax for the period in which the
51 disqualification first occurs for purposes of section 63-3629, Idaho Code, and
52 may be enforced and collected in the manner provided by the Idaho sales tax
53 act in which the disqualification first occurs for purposes of section
54 63-3629, Idaho Code, and may be enforced and collected in the manner provided
55 by the Idaho sales tax act.
3
1 SECTION 2. The provisions of this act shall be null, void and of no
2 force and effect on and after July 1, 2013.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
Moved by Langhorst
Seconded by Corder
IN THE SENATE
SENATE AMENDMENTS TO H.B. NO. 497
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, in line 12, following "PRODUCTION" insert:
3 "PROJECT"; in line 14, following "production" insert: "project"; in line 17,
4 following "duction" insert: "project", and also in line 17, following "media
5 production" insert: "project"; in line 24, following "production" insert:
6 "project"; in line 25, following "period" insert: "for each media production
7 project"; and in line 30, following "commerce" insert: "and labor".
8 On page 2 delete lines 1 and 2 and insert:
9 "(a) "Media production project" is defined as the production of a single
10 project through a variety of techniques and media including live action";
11 delete lines 8 through 10 and insert: "listening medium. Products of a media
12 production project include feature films, videos, television series or movies,
13 industrials and education programs or shows, video"; in line 12, following
14 "programming," insert: "political advertisements,"; in line 15, following
15 "Media production" insert: "project"; in line 17, following "production"
16 insert: "project"; in line 20, following "production" insert: "project"; in
17 line 25, following "production" insert: "project"; and in line 28, following
18 "production" insert: "project".
19 AMENDMENT TO SECTION 2
20 On page 3, delete line 2 and insert: "force and effect on and after July
21 1, 2011. By January 2 of each year, the Department of Commerce and Labor shall
22 provide an annual report of the results of all media production projects that
23 have applied to participate in the media production project tax rebate con-
24 tained in Section 63-3622TT, Idaho Code, to the Governor and the Legisla-
25 ture.".
26 CORRECTION TO TITLE
27 On page 1, in line 5, delete "IN MEDIA PRODUCTION" and insert: "IN A MEDIA
28 PRODUCTION PROJECT"; and in line 7, delete "AND" and also in line 7, following
29 "DATE" insert: "AND TO PROVIDE FOR AN ANNUAL REPORT".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 497, As Amended in the Senate
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 63-3622TT, IDAHO CODE, TO PROVIDE A SALES
4 AND USE TAX REBATE FOR THE SALES OR USE OF TANGIBLE PERSONAL PROPERTY USED
5 DIRECTLY BY A MEDIA PRODUCTION COMPANY IN A MEDIA PRODUCTION PROJECT, TO
6 PROVIDE PROCEDURES, TO DEFINE TERMS, TO PROVIDE QUALIFICATION REQUIREMENTS
7 AND TO PROVIDE FOR RECAPTURE; PROVIDING A SUNSET DATE AND TO PROVIDE FOR
8 AN ANNUAL REPORT.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is
11 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
12 ignated as Section 63-3622TT, Idaho Code, and to read as follows:
13 63-3622TT. MEDIA PRODUCTION PROJECT TAX REBATE. (1) An eligible media
14 production company which purchases tangible personal property used directly in
15 a media production project and which makes qualifying media production expen-
16 ditures may qualify for a rebate of sales or use taxes paid on such purchases
17 if the purchaser develops, with such tangible personal property or qualifying
18 media production project expenditures in Idaho, the production in Idaho of a
19 media production project and if the purchase or use of such tangible personal
20 property is subject to the sales and use tax. To be eligible for the rebate
21 pursuant to this section, a media production company shall submit to the
22 department of commerce and labor information required by the director of the
23 department of commerce and labor to demonstrate conformity with the require-
24 ments of this section and shall have expended or will expend a minimum of two
25 hundred thousand dollars ($200,000) on qualifying media production project
26 expenses in Idaho within a consecutive thirty-six (36) month period for each
27 media production project. Application for the rebate shall be made within
28 thirty-six (36) months of the expenditure qualifying for the rebate. The
29 department of commerce and labor shall determine eligibility of the company
30 and shall report this information to the state tax commission in a manner and
31 at a time upon which the department of commerce and labor and the tax commis-
32 sion shall agree. The department of commerce and labor may charge an applica-
33 tion fee not in excess of five hundred dollars ($500) for a media production
34 company's application to be qualified for the sales tax rebate pursuant to
35 this section
36 (2) To receive the rebate pursuant to this section, the media production
37 company shall apply to the state tax commission on forms and in the manner the
38 commission requires. The application shall include a certification of the
39 amount of expenditures made in Idaho with respect to the purchase of tangible
40 personal property by the media production company by the director of the
41 department of commerce and labor or the director's designee. The rebate shall
42 be paid within sixty (60) days from the date the tax commission receives a
43 qualified application. If the rebate is not paid within that period, the
2
1 amount owed to the taxpayer shall accrue interest at the rate provided in sec-
2 tion 63-3045, Idaho Code.
3 (3) As used in this section:
4 (a) "Media production project" is defined as the production of a single
5 project through a variety of techniques and media including live action
6 camera work, animation, computer-generated imagery or other recorded work
7 during the process of preproduction, production and postproduction, that
8 are intended to be exhibited in theaters, licensed for exhibition on tele-
9 vision or cable stations or networks, licensed for or produced for sale or
10 rental to home or commercial viewing markets or a future viewing or
11 listening medium. Products of a media production project include feature
12 films, videos, television series or movies, industrials and education pro-
13 grams or shows, video or computer games, and documentaries, but shall not
14 include production of news and athletic event programming, political
15 advertisements, family or personal productions, filming of live staged
16 events to which tickets are sold or any material of an indecent or obscene
17 nature as provided in chapter 41, title 18, Idaho Code. "Media production
18 project" includes "preproduction," "production," and "postproduction."
19 (b) "Postproduction" means the final stage in a media production project
20 after principal photography, including editing, the addition of
21 sound/visual effects and musical scoring, mixing and dubbing and distrib-
22 uting.
23 (c) "Preproduction" means the planning stage in a media production proj-
24 ect after the project is financed and before principal photography or
25 actual shooting commences, including script treatment and
26 editing/rewriting, scheduling, set design and construction, casting, bud-
27 geting and financial planning, and scouting or selection of locations.
28 (d) "Production" means the general process of putting a media production
29 project together, including casting, set construction, principal photogra-
30 phy and shooting.
31 (e) "Qualifying media production project expenditures" in Idaho includes,
32 but is not limited to, wages from eleven dollars ($11.00) per hour to one
33 hundred twenty-five dollars ($125) per hour, fringe benefits, commissions
34 or fees and per diem expenses for labor paid in Idaho; contract labor paid
35 in Idaho; equipment rentals and purchases during preproduction, production
36 and postproduction such as grip, lighting, editing, camera, communication
37 and computers; film, videotape stock or digital recording medium and proc-
38 essing and transfer costs; expendables such as gaffer's tape or gel;
39 wardrobe and costuming; makeup and hairdressing supplies; set construction
40 and set decoration materials, prop rentals and purchases, including lumber
41 and construction materials, tools and equipment; stage, location site and
42 office space rentals, equipment and expendables; vehicle, truck, boat and
43 aircraft rentals, leases and purchases; food purchased for cast and crew;
44 airfare or other travel purchased through an Idaho based travel agency;
45 insurance and completion bond coverage purchased through an Idaho based
46 agency; lodging expenses for hotels, motels, apartments and houses; motor
47 vehicle expenses, including gas, oil, servicing and reimbursed mileage;
48 laundry and dry cleaning; and shipping services.
49 (4) Any rebate paid shall be subject to recapture by the commission at
50 one hundred percent (100%) in the event that the tax incentive criteria are
51 not met at the project site during the project period or in the event that the
52 media production company did not otherwise qualify. Any recapture amount due
53 under this section shall be a deficiency in tax for the period in which the
54 disqualification first occurs for purposes of section 63-3629, Idaho Code, and
55 may be enforced and collected in the manner provided by the Idaho sales tax
3
1 act in which the disqualification first occurs for purposes of section
2 63-3629, Idaho Code, and may be enforced and collected in the manner provided
3 by the Idaho sales tax act.
4 SECTION 2. The provisions of this act shall be null, void and of no
5 force and effect on and after July 1, 2011. By January 2 of each year, the
6 Department of Commerce and Labor shall provide an annual report of the results
7 of all media production projects that have applied to participate in the media
8 production project tax rebate contained in Section 63-3622TT, Idaho Code, to
9 the Governor and the Legislature.
STATEMENT OF PURPOSE
RS 15605
This legislation provides a rebate of sales taxes paid on qualifying
expenses when a minimum of $200,000 is spent on a film and media
production project in Idaho over 36 months. This rebate will sunset in
2013.
Fiscal Note
No impact to the general fund for FY 2007. The potential loss of
revenue in the future of $50,000 a year, assuming that there were two
new productions annually that average $2.5 million in qualified
expenditures per year. The industry estimates 20 percent of production
budgets go to taxable purchases.
CONTACT
Name: Roger Madsen, Idaho Commerce & Labor
Phone: 208-332-3570
STATEMENT OF PURPOSE/FISCAL NOTE H497