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REFERENCE TITLE: TPT; reimbursement;
motion picture production. |
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State of
Arizona House of
Representatives Fifty-fourth
Legislature Second Regular
Session 2020 |
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HB 2385 |
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Introduced by Representative Blackman |
AN ACT
Amending Title
41, chapter 10, article 1, Arizona Revised Statutes, by adding section 41‑1509;
amending Title 42, chapter 5, article 1, Arizona Revised Statutes, by adding
section 42-5045; relating to motion picture production companies.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 41-1509, to read:
41-1509. Motion picture
production; transaction privilege and use tax; reimbursement; rules;
definitions
A. The authority shall receive and
evaluate applications that are submitted by motion picture production companies
to receive a transaction privilege and use tax reimbursement pursuant to
section 42‑5045 for qualified production expenses made by the motion
picture production company. The authority shall certify to the
department of revenue the name, reimbursement amount and other relevant
information relating to each applicant.
B. To be eligible for the transaction
privilege and use tax reimbursement pursuant to this section and section 42‑5045,
a motion picture production company shall file an application with the
authority within ninety days after the completion of a production project. The application, on a form prescribed by the
authority, shall include:
1. The applicant's name, address and
federal tax identification number.
2. The date the production project
was completed.
3. A detailed list of actual
production expenses and the amount of transaction privilege and use tax applied
to those expenses.
4. Any additional information that
the authority requires.
C. Within ninety days after receiving
the application, the authority shall review and determine whether the motion
picture production company and the submitted production expenses are eligible
for reimbursement. The authority may
request additional information from the applicant in order to make an informed
decision regarding the eligibility of the motion picture production company and
the submitted production expenses.
D. If the authority approves the
application, the authority shall notify the department of revenue of the
approval and provide the department of revenue necessary information required
to administer this section and section 42‑5045.
E. The authority may not approve
reimbursement exceeding a total of $______ in any calendar
year. Reimbursement is allowed on a first‑come, first‑served
basis according to the date of application. An approved amount
applies against the dollar amount for the year in which the application was
submitted. If, at the end of the year,
an unused balance occurs under the dollar limit prescribed by this subsection,
the balance shall be reallocated for the purposes of this section in the
following year.
F. The authority and the department
of revenue shall collaborate in adopting rules that are necessary to administer
this section and section 42‑5045.
G. For the purposes of this section:
1. "Motion picture production
company":
(a) Means any
person that is primarily engaged in the business of producing entertainment
content created in whole or in part within this state, including motion
pictures, documentaries, long-form productions, specials, series, miniseries,
sound recordings, videos and music videos and interstitials, television
programming, interactive television, interactive games, videogames,
commercials, infomercials, any format of digital media, including an
interactive website, created to distribute or exhibit to the general public,
and any trailer, pilot, video teaser or demo created primarily to stimulate the
sale, marketing, promotion or exploitation of future investment in either a
product or a qualified production by any means and media in any digital format,
film or videotape.
(b) Does not
include any ongoing television program created primarily as news, weather or
financial market reports, a production featuring current events, sporting
events and awards show or other gala event, a production whose sole purpose is
fund‑raising, a production used for corporate training or in-house
corporate advertising or other similar productions for which records are required
to be maintained under 18 United States code section 2257.
2. "Qualified production
expense" means the following expenses that are directly related to a
production by a motion picture production company:
(a) Material
purchased from a vendor located in this state to construct sets and for special
effects and other purposes.
(b) Equipment
rented or leased from a vendor located in this state.
(c) Equipment
acquired or otherwise purchased from a vendor located in this state.
(d) Facilities
leased from a lessee located in this state for preproduction, production and
postproduction in this state.
(e) Hotel and
lodging in this state.
(f) Food
expenses, including catering, purchased in this state.
(g) Location
fees in this state.
(h) Postproduction
expenses in this state.
(i) Vehicles rented in this state.
Sec. 2. Title 42, chapter 5, article 1, Arizona Revised Statutes, is amended by adding section 42-5045, to read:
42-5045. Qualified motion
picture production companies; expenses; reimbursement; fund; exemption;
definition
A. After receiving notice from the
Arizona commerce authority that the authority approved an application under
section 41‑1509, the department shall pay the transaction privilege and
use tax reimbursement to the motion picture production company in the amount
determined and authorized by the Arizona commerce authority as provided in
section 41‑1509.
B. The reimbursement shall be paid
from the qualified motion picture production reimbursement fund established by
this section on a first‑come, first‑served basis in the same manner
as refunds granted under section 42‑1118. The reimbursement amount is
subject to setoff as provided by section 42‑1122.
C. The qualified motion picture
production reimbursement fund is established consisting of legislative
appropriations. The department of
revenue shall administer the fund. Monies in the fund are subject to
legislative appropriation. Monies in the fund are exempt from the
provisions of section 35‑190 relating to lapsing of appropriations.
D. For the purposes of this section,
"motion picture production company" has the same meaning prescribed
in section 41‑1509.