SRC-MKV H.B. 939 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 939
By: Hodge (Carona)
Finance
5/8/2001
Engrossed


DIGEST AND PURPOSE 

In recent years, several film and television projects have been made in
Texas because of the state's diverse natural and urban landscapes as well
as its relatively moderate climate. However, there is strong competition
between Texas and the other 49 states to attract filmmakers. Tax incentives
may be an effective way to bring the filmmakers to this state. Currently,
filmmakers may claim tax exemptions on several items, but motor vehicles
are not included on this list. Furthermore, movie productions may only
claim exemption from state occupancy taxes levied on hotel and motel stays
of 30 consecutive days or longer.  H.B. 939 provides a sales tax exemption
on motor vehicles purchased, used, or leased by filmmakers and a refund of
the hotel occupancy tax for film crews that stay 15 consecutive days or
more.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 152E, Tax Code, by adding Section 152.094, as
follows: 

Sec. 152.094.  MOTOR VEHICLES USED IN TELEVISION, MOTION PICTURE, VIDEO, OR
AUDIO PRODUCTIONS.  (a)  Provides that the taxes imposed by this chapter do
not apply to the purchase, rental, or use of a motor vehicle used
exclusively in connection with the production for consideration of a
television film, commercial, or program, a motion picture, or a video or
audio recording, a copy of which is sold or offered for ultimate sale,
licensed, distributed, broadcast, or otherwise commercially exhibited.  

 (b)  Requires the tax that would have been remitted on gross rental
receipts without the exemption provided by this section to be deemed to
have been remitted for the purpose of computing the minimum gross rental
receipts tax imposed by Section 152.026.  
 
SECTION 2.  Amends Chapter 156C, Tax Code, by adding Section 156.104, as
follows: 

Sec. 156.104.  EXCEPTION--PERSONS INVOLVED IN TELEVISION, MOTION PICTURE,
VIDEO, OR AUDIO PRODUCTIONS.  (a)  Provides that, subject to this section,
this chapter does not impose a tax on a person involved in the production
for consideration of a television film, commercial, or program, a motion
picture, or a video or audio recording, a copy of which is sold or offered
for ultimate sale, licensed, distributed, broadcast, or otherwise
commercially exhibited, provided that the person has the right to use or
possess a room in one hotel or in a series of two or more hotels for at
least 15 consecutive days.  

 (b)  Requires a person otherwise excepted under this section to pay the
tax imposed by this chapter and be entitled to a refund of the amount of
tax paid in accordance with Section 156.154.  
  
SECTION 3.  Amends Section 156.154(a), Tax Code, to require a governmental
entity entitled under Section 156.103 or a person entitled under Section
156.104 to a refund of taxes paid under this chapter to file a refund claim
with the comptroller.  
 
SECTION 4.  (a)  Effective date: July 1, 2001 or October 1, 2001.

 (b)  Makes application of this Act prospective.