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."
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..............
I'd guess the state/city is a bigger cost factor than the unions.
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.
LOL
Interesting.
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.
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.
How absurd. No hope for out-of-state expenditures= nothing lost. Go outside and play.
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. ;)
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....
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.
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.
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.
Now now, play nice. The liberals don't know any better.
Many states offer tax breaks to the movie industry. California is only trying to keep up.
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.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.