C.S.H.B. 30 78(R)    BILL ANALYSIS


C.S.H.B. 30
By: Hodge
Ways & Means
Committee Report (Substituted)



BACKGROUND 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.  C.S.H.B. 30 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

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

C.S.H.B. 30 provides that the motor vehicle tax does 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.  Provides that the tax that would have
been remitted on gross rental receipts without the exemption to be
considered to have been remitted for the purpose of computing the minimum
gross rental receipts tax.  

Provides that the hotel occupancy tax is not imposed on a person involved
exclusively 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. Requires a person
otherwise excepted to pay the tax and be entitled to a refund of the
amount of tax paid.  Provides that a person entitled to a refund of taxes
must file a refund claim with the comptroller.  

EFFECTIVE DATE

July 1, 2003, or, if the Act does not receive the necessary vote, the Act
takes effect October 1, 2003. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute specifies that the taxes imposed on the vehicle used or the
person involved be exclusively used or involved in the production.