HB-5960, As Passed House, June 24, 2004                                     

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           HOUSE BILL NO. 5960                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1937 PA 94, entitled                                              

                                                                                

    "Use tax act,"                                                              

                                                                                

    (MCL 205.91 to 205.111) by adding section 4y.                               

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

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

                                                                                

2   company may claim a credit against the tax paid under this act on           

                                                                                

3   the privilege of using, storing, or consuming tangible personal             

                                                                                

4   property if all of the following apply:                                     

                                                                                

5       (a) The motion picture production company has spent                         

                                                                                

6   $250,000.00 or more in this state for purposes related to the               

                                                                                

7   filming or production of a single motion picture.                           

                                                                                

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

                                                                                

9   picture production company is used, stored, or consumed                     

                                                                                

10  exclusively as an integral part of the production activities in             

                                                                                

11  this state.                                                                 

                                                                                


     House Bill No. 5960 (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 storage, use, or consumption of tangible personal property              

                                                                                

20  after December 31, 2006.