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Study: California loses millions on out-of-state films
AP ^ | 8-22-05

Posted on 08/22/2005 5:38:11 AM PDT by Hadean

LOS ANGELES - California receives millions of dollars in tax revenue when movies are filmed in the state, but about 60 percent of all productions last year were shot elsewhere, according to a study to be released Monday.

The state, for example, loses more than $10 million when a $70 million movie is made outside the state, and $3 million for a 12-episode drama, the Los Angeles County Economic Development Corp. said.

Sponsored by labor and industry groups, the 20-page showed that 236 features, or about 40 percent of all productions, were shot partially or exclusively in the state last year.

"The real threat is that this major economic engine could gradually leave the state, one project at a time," according to the report, which does not provide total lost revenue.

The findings come as lawmakers are proposing legislation to offer tax breaks to encourage producers to continue shooting films, television shows and commercials in the state.

Gov. Arnold Schwarzenegger, a former actor, is pushing the legislation that would provide a 12 percent tax credit on a feature film's spending, with a cap of $3 million per production. Television movies could get an additional 3 percent credit.

Assembly Speaker Fabian Nunez, D-Los Angeles, who is sponsoring the bill, said the incentives would also benefit the entire state.

"What this really comes down to is - are we willing to make a bit of a sacrifice to generate more middle-class jobs here in California?" he said. "This is not a tax credit bill for the big movie studios, but for those that operate on the margins."

Former Gov. Gray Davis proposed similar incentives in 2002 but they failed to garner legislative support.

Screen Actors Guild President Melissa Gilbert said tax breaks are a top priority.

"It's really vital that we bring the work back here so that we can increase the job opportunities for our members," she said.

The report said states such as New Mexico and Louisiana have successful used tax breaks to lure filmmakers.

For instance, director Taylor Hackford said he shot the Oscar-nominated film "Ray" in Louisiana because of a $3.7 million tax credit.

"I wouldn't have been able to make that film without that kind of help," Hackford said. "I want California to wake up."


TOPICS: News/Current Events; US: California
KEYWORDS: califonia; films; handouts; hollywood; hollywoodhandouts; leftcoast; melissagilbert; movies; nunez; sb777; schwarzenegger; taxbreaks
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Bush's fault.
1 posted on 08/22/2005 5:38:12 AM PDT by Hadean
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To: Hadean

What do they expect? Union's drive up the cost of production, and not everybody in the rest of the US speaks with a Spanish accent..............


2 posted on 08/22/2005 5:48:48 AM PDT by Red Badger (Want to be surprised? GOOOOGLE your own name. Want to have fun? GOOOOGLE your neighbor's......)
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To: Hadean
...according to a study to be released Monday.

(actual study produced in Toronto, Canada)
3 posted on 08/22/2005 5:50:57 AM PDT by motzman (It's obvious to everyone now--Bill Clinton is an absolute disgrace.)
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To: Hadean
All I can say is duh...

You make it expensive to work here by punishing employers with high taxes and outrageous workman's comp payments and employers leave and hire people elsewhere.
4 posted on 08/22/2005 5:52:35 AM PDT by DB (©)
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To: Red Badger

I'd guess the state/city is a bigger cost factor than the unions.


5 posted on 08/22/2005 5:53:24 AM PDT by DB (©)
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To: Hadean
The state, for example, loses more than $10 million when a $70 million movie is made outside the state, and $3 million for a 12-episode drama, the Los Angeles County Economic Development Corp. said.

Uhhh and the other states? How much do they lose when a film is made in California? How can anybody lose what is not rightfully theirs to begin with? As far as I know, movie making is legal everywhere in the US excepting AREA 51.

6 posted on 08/22/2005 5:59:39 AM PDT by RGSpincich
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To: motzman
(actual study produced in Toronto, Canada)

LOL

7 posted on 08/22/2005 6:00:52 AM PDT by 11Bush (No outstanding felonies, but my life has been one long misdemeanor.)
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To: Carry_Okie; calcowgirl; SierraWasp; EveningStar
Gov. Arnold Schwarzenegger, a former actor, is pushing the legislation that would provide a 12 percent tax credit on a feature film's spending, with a cap of $3 million per production. Television movies could get an additional 3 percent credit.

Interesting.

8 posted on 08/22/2005 6:02:29 AM PDT by FOG724 (RINOS - they are not better than leftists, they ARE leftists.)
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To: Hadean
"Study: California loses millions on out-of-state films"

Would someone out there in Freeper-land explain to me just how in the hell California can lose something they never had. IMNOHO, they didn't "lose" the money, they screwed themselves out of the ADDTIONAL tax money by making it cheaper for the movie industry to make movies elsewhere. What it comes down to is, California is succeeding in doing something that the left has dreamed of for years. TAX THE EVIL CORPORATIONS OUT OF BUSINESS. (or out of the state)
9 posted on 08/22/2005 6:03:50 AM PDT by Bar-Face
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To: Hadean

Another union gripe. Since WalMart isn't directly involved in the film industry the unions in that industry have to find something to gripe about. Between new zealand and canada the us as a whole loses.


10 posted on 08/22/2005 6:05:29 AM PDT by Mrs. Shawnlaw (Rock beats scissors. Don't run with rocks. NRA)
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To: Bar-Face

They're doing it in MA too (consumers). Tax hell and high water when all most have to do is take a 1/2 drive to NH to get around it. It has really ticked off a lot of small businesses near the entire state line.


11 posted on 08/22/2005 6:11:23 AM PDT by Hadean
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To: Mrs. Shawnlaw

How absurd. No hope for out-of-state expenditures= nothing lost. Go outside and play.


12 posted on 08/22/2005 6:12:48 AM PDT by CBart95
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To: Hadean
"What this really comes down to is - are we willing to make a bit of a sacrifice to generate more middle-class jobs here in California?" he said. "This is not a tax credit bill for the big movie studios, but for those that operate on the margins."

I love this. A typical nitwit Democrat. Create a high-tax regime that drives business out of state, then try lure some of it back by giving breaks only to those industries the Legislature thinks are "cool". California can't survive with nothing but software companies and filmmakers - some of those icky, polluting farmers and manufacturers will be neccessary, too. ;)

13 posted on 08/22/2005 6:17:29 AM PDT by Mr. Jeeves ("Feelings are not a tool of cognition, therefore they are not a criterion of morality." -- Ayn Rand)
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To: Hadean

Well maybe if you'd gag a few of your 'stars' such as babs the mouth; alex, the idiot, has he left yet??? maybe you have better times, but as long as your 'stars' are all mouth, NO we don't buy it....


14 posted on 08/22/2005 6:23:27 AM PDT by HarleyLady27 (My ? to libs: "Do they ever shut up on your planet?" "Grow your own DOPE: Plant a LIB!")
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To: RGSpincich; Ultra Sonic 007
Exactly!

The state, for example, loses more than $10 million when a $70 million movie is made outside the state

This from the same type of people that think tax cuts mean that the government is giving money away....it shows a lack of critical thought on behalf of the liberals. Typical.

15 posted on 08/22/2005 6:33:30 AM PDT by ImaGraftedBranch (God is my Fulcrum; prayer is my lever -- Saint Therese of Lisieux)
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To: ImaGraftedBranch

Lets put a $2.00 tax per ticket for re-training and help for those in the industry.

That is what they say we need to do for everyone else.


16 posted on 08/22/2005 6:51:42 AM PDT by edcoil (Reality doesn't say much - doesn't need too)
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To: Hadean

It's not just taxes driving productions out of the state, it's the fees for permits charged by the cities the movies are filmed in - you don't see many movies filmed on the streets of San Francisco, because the city soaks the movie makers for millions and millions and millions - this was a news story ten years ago, and it has'nt gotten better. That's why so many movies are now shot overseas, or in Canada, or in smaller cities.


17 posted on 08/22/2005 6:55:06 AM PDT by ByDesign
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To: ImaGraftedBranch

Now now, play nice. The liberals don't know any better.


18 posted on 08/22/2005 7:17:54 AM PDT by Ultra Sonic 007 (DON'T LET THE LEFT GET YOU!)
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To: Hadean
The findings come as lawmakers are proposing legislation to offer tax breaks to encourage producers to continue shooting films, television shows and commercials in the state.

Many states offer tax breaks to the movie industry. California is only trying to keep up.

19 posted on 08/22/2005 7:30:35 AM PDT by Between the Lines (Be careful how you live your life, it may be the only gospel anyone reads.)
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To: Hadean

Well, I lost millions of dollars because the New York Giants decided to sign a guy who played football much better than I did. And those darn New York Mets signed a guy who could hit a ball farther than me. Lost millions there too. I guess they were just looking for value for their money. Go figure.


20 posted on 08/22/2005 7:34:58 AM PDT by thefactor
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