First Regular Session
Sixty-second General Assembly
LLS NO. 99-0173.02 Jason Gelender HOUSE BILL 99-1140
STATE OF COLORADO
BY REPRESENTATIVE Hagedorn;
also SENATOR Chlouber.
FINANCE
A BILL FOR AN ACT
101 CONCERNING THE REFUNDING OF STATE SALES AND USE TAX PAID IN
102 CONNECTION WITH FILM PRODUCTION IN COLORADO.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Allows a production company that spends at least $1,000,000 on
production goods and services used for film production activities in
Colorado in any given calendar year to claim a refund of sales and use tax
paid on such production goods and services. Allows a production
company that spends at least $250,000 on production goods and services
used solely for commercial advertising productions in Colorado in any
given calendar year to claim a refund of sales and use tax paid on such
production goods and services. Defines terms. Disallows the refund with
respect to the sales and use tax paid on production goods converted to
other uses within a year following the date of purchase.
Requires a production company to claim the refund by April 1 of
the calendar year following the calendar year for which the refund is
claimed. Sets forth additional refund application requirements. Requires
a production company to register with the motion picture and television
advisory commission before claiming a refund. Prohibits the motion
picture and television advisory commission from charging a fee for such
registration.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Article 26 of title 39, Colorado Revised Statutes, is
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 amended BY THE ADDITION OF A NEW PART to read:
2 PART 4
3 SALES AND USE TAX REFUND FOR FILM PRODUCTION
4 39-26-401. Definitions. AS USED IN THIS PART 4, UNLESS THE
5 CONTEXT OTHERWISE REQUIRES:
6 (1) "COMMERCIAL ADVERTISING PRODUCTION" MEANS THE
7 PRODUCTION OF A FILM THAT IS CREATED TO PROMOTE SPECIFIC BRANDS,
8 PRODUCTS, SERVICES, RETAILERS, OR ADVOCACY POSITIONS.
9 (2) "FILM" MEANS ANY VISUAL OR AUDIOVISUAL WORK THAT
10 CONTAINS A SERIES OF RELATED IMAGES, THAT IS FIXED ON PHOTOGRAPHIC
11 FILM, VIDEOTAPE, COMPUTER DISC, LASER DISC, OR A SIMILAR DELIVERY
12 MEDIUM FROM WHICH IT CAN BE VIEWED OR REPRODUCED, AND THAT IS A
13 COMMERCIAL ADVERTISING PRODUCTION OR IS SHOWN IN THEATERS,
14 LICENSED FOR TELEVISION BROADCASTING, OR LICENSED FOR THE HOME
15 VIEWING MARKET.
16 (3) "PRODUCTION ACTIVITIES" MEANS THE SHOOTING OF A FILM,
17 SUPPORT ACTIVITIES RELATED TO SUCH SHOOTING, AND ANY PRESHOOTING
18 OR POSTSHOOTING ACTIVITIES THAT ARE NECESSARY TO PRODUCE A
19 FINISHED FILM, INCLUDING BUT NOT LIMITED TO EDITING AND THE
20 CREATION OF SETS, PROPS, COSTUMES, AND SPECIAL EFFECTS.
21 (4) "PRODUCTION COMPANY" MEANS A PERSON, INCLUDING A
22 CORPORATION OR OTHER BUSINESS ENTITY, THAT ENGAGES IN PRODUCTION
23 ACTIVITIES FOR THE PURPOSE OF PRODUCING ALL OR ANY PORTION OF A
24 FILM IN COLORADO.
25 (5) "PRODUCTION GOODS AND SERVICES" MEANS:
26 (a) ITEMS OF TANGIBLE PERSONAL PROPERTY PURCHASED OR
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1 LEASED IN COLORADO OR PURCHASED OR LEASED FROM AN OUT-OF-STATE
2 VENDOR BY A PRODUCTION COMPANY AND USED IN PRODUCTION
3 ACTIVITIES IN COLORADO;
4 (b) SERVICES PURCHASED BY A PRODUCTION COMPANY AND
5 NECESSARY FOR OR RELATED TO PRODUCTION ACTIVITIES IN COLORADO,
6 INCLUDING BUT NOT LIMITED TO LODGING AND ON-SITE CATERED MEALS.
7 (6) "STATE SALES AND USE TAX" MEANS THE TAX IMPOSED BY
8 PARTS 1 AND 2 OF THIS ARTICLE.
9 39-26-402. Refund of state sales and use tax - application
10 requirements and procedures. (1) (a) ANY PRODUCTION COMPANY
11 THAT ENGAGES IN PRODUCTION ACTIVITIES IN COLORADO DURING ANY
12 GIVEN CALENDAR YEAR AND THAT SPENDS AT LEAST ONE MILLION
13 DOLLARS ON PRODUCTION GOODS AND SERVICES USED IN SUCH
14 PRODUCTION ACTIVITIES DURING THE CALENDAR YEAR SHALL BE ELIGIBLE
15 TO CLAIM A REFUND OF ALL STATE SALES AND USE TAX PAID ON THE
16 PURCHASE OR LEASE OF SUCH PRODUCTION GOODS AND SERVICES DURING
17 THAT CALENDAR YEAR. IF A PRODUCTION COMPANY'S PRODUCTION
18 ACTIVITIES IN COLORADO DURING ANY GIVEN CALENDAR YEAR RELATE
19 SOLELY TO COMMERCIAL ADVERTISING PRODUCTIONS AND THE
20 PRODUCTION COMPANY SPENDS AT LEAST TWO HUNDRED FIFTY THOUSAND
21 DOLLARS ON PRODUCTION GOODS AND SERVICES USED IN SUCH
22 PRODUCTION ACTIVITIES DURING THE CALENDAR YEAR, THE PRODUCTION
23 COMPANY SHALL BE ELIGIBLE TO CLAIM A REFUND OF ALL STATE SALES
24 AND USE TAX PAID ON THE PURCHASE OR LEASE OF SUCH PRODUCTION
25 GOODS AND SERVICES DURING THE CALENDAR YEAR.
26 (b) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (a) OF THIS
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1 SUBSECTION (1), NO REFUND SHALL BE ALLOWED OF STATE SALES AND USE
2 TAX PAID ON THE PURCHASE OR LEASE OF PRODUCTION GOODS AND
3 SERVICES USED IN PRODUCTION ACTIVITIES IN COLORADO IF THE
4 PRODUCTION COMPANY ALSO USES SUCH PRODUCTION GOODS AND
5 SERVICES FOR OTHER PURPOSES WITHIN THE TWELVE-MONTH PERIOD
6 FOLLOWING THE DATE OF PURCHASE.
7 (2) TO CLAIM THE REFUND ALLOWED BY SUBSECTION (1) OF THIS
8 SECTION, A PRODUCTION COMPANY SHALL SUBMIT A REFUND APPLICATION
9 TO THE DEPARTMENT OF REVENUE ON A FORM PROVIDED BY THE
10 DEPARTMENT NO LATER THAN APRIL 1 OF THE CALENDAR YEAR
11 FOLLOWING THE CALENDAR YEAR FOR WHICH THE REFUND IS CLAIMED.
12 THE APPLICATION SHALL INCLUDE A DETAILED LIST OF ALL EXPENDITURES
13 THAT SUPPORT THE CLAIM FOR A REFUND, THE NAME AND ADDRESS OF AN
14 INDIVIDUAL WHO MAINTAINS RECORDS OF SUCH EXPENDITURES, A
15 STATEMENT THAT THE PRODUCTION COMPANY AGREES TO FURNISH
16 RECORDS OF ALL SUCH EXPENDITURES TO THE DEPARTMENT OF REVENUE
17 UPON REQUEST, AND A VERIFIED STATEMENT THAT THE PRODUCTION
18 COMPANY HAS REGISTERED WITH THE MOTION PICTURE AND TELEVISION
19 ADVISORY COMMISSION AS REQUIRED BY SUBSECTION (3) OF THIS SECTION.
20 THE APPLICATION SHALL ALSO INCLUDE ANY ADDITIONAL INFORMATION
21 THAT THE DEPARTMENT OF REVENUE MAY REQUIRE BY RULE.
22 (3) A PRODUCTION COMPANY MUST REGISTER WITH THE MOTION
23 PICTURE AND TELEVISION ADVISORY COMMISSION PRIOR TO THE DATE OF
24 FILING AN APPLICATION FOR A REFUND ALLOWED BY SUBSECTION (1) OF
25 THIS SECTION. NO REFUND SHALL BE ALLOWED IF A PRODUCTION
26 COMPANY HAS NOT COMPLIED WITH THIS SUBSECTION (3).
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1 SECTION 2. 24-32-309 (1), Colorado Revised Statutes, is
2 amended BY THE ADDITION OF A NEW PARAGRAPH to read:
3 24-32-309. Functions of commission - legislative declaration.
4 (1) The commission shall have the following functions:
5 (d) TO REGISTER ANY PRODUCTION COMPANY REQUIRED TO
6 REGISTER WITH THE COMMISSION PURSUANT TO SECTION 39-26-402 (3),
7 C.R.S. THE COMMISSION SHALL NOT CHARGE A FEE FOR SUCH
8 REGISTRATION.
9 SECTION 3. Effective date - applicability. This act shall take
10 effect July 1, 1999, and shall apply to purchases made and leases entered
11 into by production companies on or after said date.
12 SECTION 4. Safety clause. The general assembly hereby finds,
13 determines, and declares that this act is necessary for the immediate
14 preservation of the public peace, health, and safety.