SF 2850

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to sales and use tax; exempting materials 
  1.3             used in the creation of movies and television shows; 
  1.4             amending Minnesota Statutes 2002, section 297A.68, by 
  1.5             adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 297A.68, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 40.  [MOVIES AND TELEVISION; INPUTS TO PRODUCTION.] 
  1.10  The sale of tangible personal property primarily used or 
  1.11  consumed directly in the preproduction, production, and 
  1.12  postproduction of movies and television shows are exempt. 
  1.13  "Preproduction" and "production" include all the activities 
  1.14  related to the preparation of shooting and the shooting of 
  1.15  movies and television shows, including film processing.  
  1.16  Equipment rented for preproduction and production activities are 
  1.17  exempt.  "Postproduction" includes all activities related to 
  1.18  editing and finishing of the movie or television show.  This 
  1.19  exemption does not apply to tangible personal property used 
  1.20  primarily in administration, general management, or marketing. 
  1.21  Machinery and equipment purchased for use in producing movies 
  1.22  and television shows and fuel, electricity, gas, or steam used 
  1.23  for space heating and lighting are not exempt under this 
  1.24  subdivision. 
  1.25     [EFFECTIVE DATE.] This section is effective for sales and 
  2.1   purchases made after June 30, 2004.