BP BHEAD INT S [atlas:bill]

AN ACT Relating to exempting the sale and use of motion picture or video production equipment and supplies from sales and use tax; and amending RCW 82.08.0315 and 82.12.0315.

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

Sec. 1. RCW 82.08.0315 and 1997 c 61 s 1 are each amended 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:~~)) all items necessary and essential to the production of motion picture or video production or postproduction and used solely in such activities, including but not limited to 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 and other communication equipment, vans, trucks, and other vehicles specifically equipped for motion picture or video production or used solely for production activities, wardrobe and makeup trailers, special effects and stunt equipment, video assists, videotape recorders, cables and connectors, ((~~telepromoters [teleprompters]~~)) teleprompters, 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.

(d) "Production supplies" means all items necessary and essential to the production of motion picture or video production or postproduction and used solely in such activities, including but not limited to: (i) Film, tapes, disks, and other such supplies; (ii) communication supplies; (iii) wardrobe, hair, and makeup supplies; (iv) design supplies; and (v) stage and set construction and decoration supplies.

(2) The tax levied by RCW 82.08.020 does not apply to the sale of or the rental of production equipment or production supplies, 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 production supplies, 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.

(4) In order to claim an exemption under this section, the purchaser must provide the seller with an exemption certificate in a form and manner prescribed by the department. The seller shall retain a copy of the certificate for the seller's files. Both the buyer and the seller shall retain such records as required by the department.

Sec. 2. RCW 82.12.0315 and 1995 2nd sp.s. c 5 s 2 are each amended to read as follows:

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

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

(b) Production equipment or production supplies 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," "production supplies," and "motion picture or video production business" have the meanings given in RCW 82.08.0315.

(3) The exemption provided for in this section shall not apply to the use of production equipment or production supplies rented to, or production equipment or production supplies 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.

(4) The person claiming an exemption under this section shall retain such records as required by the department.