HB-5959, As Passed House, June 24, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5959

                                                                             A bill to amend 1933 PA 167, entitled                                             

"General sales tax act,"                                                    

(MCL 205.51 to 205.78) by adding section 4bb.                               

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 4bb.  (1) A person who is a motion picture production                  

2   company may claim a credit equal to the amount of tax that the              

3   person paid to reimburse a taxpayer as provided in section 23 for           

4   sales tax paid on a sale at retail to that person if all of the             

5   following apply:                                                            

6       (a) The motion picture production company has spent                         

7   $250,000.00 or more in this state for purposes related to the               

8   filming or production of a single motion picture.                           

9   (b) The tangible personal property purchased by the motion                  

10  picture production company is used exclusively as an integral               

11  part of the production activities in this state.                            

House Bill No. 5959 (H-3) as amended June 24, 2004

1       (2) As used in this section:                                                

2       (a) "Motion picture" means a feature-length film distributed                

3   in 2 or more states that is a production for which records are              

4   not required to be maintained with respect to any performer in              

5   the production under 18 USC 2257, [or] television series[ 

6             ] made in this state, in whole or in part, for                    

7   theatrical or television viewing or as a television pilot.                  

8   Motion picture does not include the production of television                

9   coverage of news or sporting events.                                        

10      (b) "Motion picture production company" means a company in                  

11  the business of producing motion pictures.  However, motion                 

12  picture production company does not include a company owned,                

13  affiliated, or controlled, in whole or in part, by a company or             

14  individual that is in default on a loan made by the state or a              

15  loan guaranteed by the state.                                               

16      (3) This section applies only to a motion picture production                

17  company that begins production of a motion picture after the                

18  effective date of this section.  This section does not apply to             

19  the sale of tangible personal property after December 31, 2006.