September 21, 2005, Introduced by Reps. Huizenga, Virgil Smith, Stahl, Sheen, Ball, Bieda, Miller, Zelenko, Meisner, Gleason, Stewart, Stakoe, Schuitmaker, Proos, Gosselin, Amos, Vander Veen, Taub, Brandenburg, Rocca, Tobocman, Condino, Marleau and Kolb and referred to the Committee on Tax Policy.
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 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 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 or
a performance that meets all of the following conditions:
(i) The average person, applying contemporary community
standards, finds that the dominant theme of the matter or
performance, taken as a whole, appeals to the prurient interest in
sex.
(ii) The matter of performance depicts or describes, in a
patently offensive way, sexual conduct.
(iii) The matter or performance, taken as a whole, lacks serious
literary, artistic, political, or scientific value.
(4) This section applies only to a motion picture production
company that begins production of a motion picture after the
effective date of this section. This section does not apply to the
sale of tangible personal property after December 31, 2006.
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) Senate Bill No.____ or House Bill No. 5206(request no.
00228'05 *).
(b) Senate Bill No.____ or House Bill No. 5205(request no.
00230'05 *).
(c) Senate Bill No.____ or House Bill No. 5207(request no.
00231'05 *).