_______________________________________________

                       ENGROSSED SUBSTITUTE HOUSE BILL 1913

                  _______________________________________________

State of Washington              54th Legislature             1995 Regular Session

By House Committee on Finance (originally sponsored by Representatives Van Luven, Sheldon and Smith)

Read first time 03/06/95.

Providing sales and use tax exemptions for film and video production companies.

     AN ACT Relating to taxation of equipment and services used by film and video production companies; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 82.08 RCW to read as follows:

     (1) As used in this section:

     (a) "Production equipment" means the following when used in motion picture or video production or postproduction:  Grip and lighting equipment, cameras, camera mounts including tripods, jib arms, steadicams, and other camera mounts, cranes, dollies, generators, helicopter mounts, helicopters rented for motion picture or video production, walkie talkies, vans and trucks specifically equipped for motion picture or video production, wardrobe and makeup trailers, special effects and stunt equipment, video assists, videotape recorders, cables and connectors, telepromoters, sound recording equipment, and editorial equipment.

     (b) "Production services" means motion picture and video processing, printing, editing, duplicating, animation, graphics, special effects, negative cutting, conversions to other formats or media, stock footage, sound mixing, rerecording, sound sweetening, sound looping, sound effects, and automatic dialog replacement.

     (c) "Motion picture or video production business" means a person engaged in the production of motion pictures and video tapes for exhibition, sale, or for broadcast by a person other than the person producing the motion picture or video tape.

     (2) The tax levied by RCW 82.08.020 does not apply to the rental  of production equipment, or the sale of production services, to a motion picture or video production business.

     (3) The exemption provided for in this section shall not apply to rental of production equipment, or the sale of production services, to a motion picture or video production business that is engaged, to any degree, in the production of erotic material, as defined in RCW 9.68.050.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.12 RCW to read as follows:

     (1) The provisions of this chapter shall not apply in respect to the use of:

     (a) Production equipment rented to a motion picture or video production business;

     (b) Production equipment acquired and used by a motion picture or video production business in another state, if the acquisition and use occurred more than ninety days before the time the motion picture or video production business entered this state.

     (2) As used in this section, "production equipment" and "motion picture or video production business" have the meanings given in section 1 of this act.

     (3) The exemption provided for in this section shall not apply to the use of production equipment rented to, or production equipment acquired and used by, a motion picture or video production business that is engaged, to any degree, in the production of erotic material, as defined in RCW 9.68.050.

NEW SECTION. Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995.

                                    --- END ---