HB-5204, As Passed House, November 8, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 5204

     A bill to amend 1933 PA 167, entitled

"General sales tax act,"

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

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 4cc. (1) Except as otherwise provided in subsection (2),

a person who is a motion picture production company may claim a

credit as provided under section 35e of the single business tax

act, 1975 PA 228, MCL 208.35e, equal to the amount of tax that the

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

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

following apply:

     (a) The motion picture production company has spent

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

filming or production of a single motion picture.

     (b) The tangible personal property purchased by the motion

picture production company is used exclusively as an integral part

of the production activities in this state.

     (2) A person who is a motion picture production company is not

eligible for the credit under subsection (1) if the motion picture

or production activities on which the credit is based depict

obscene matter or an obscene performance.

     (3) As used in this section:

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

in 2 or more states that is a production for which records are not

required to be maintained with respect to any performer in the

production under 18 USC 2257, or television series or commercial

made in this state, in whole or in part, for theatrical or

television viewing or as a television pilot. Motion picture does

not include the production of television coverage of news or

sporting events.

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

business of producing motion pictures. However, motion picture

production company does not include a company owned, affiliated, or

controlled, in whole or in part, by a company or individual that is

in default on a loan made by the state or a loan guaranteed by the

state.

     (c) "Obscene matter or an obscene performance" means matter

described in 1984 PA 343, MCL 752.361 to 752.374.

     (4) This section applies only to a motion picture production

company that begins production of a motion picture after July 1,

2005.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) House Bill No. 5205.

     (b) House Bill No. 5206.

     (c) House Bill No. 5207.

     (d) House Bill No. 5209.