Study: California loses millions on out-of-state films

AP ^ | 8-22-05

[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."

[Ditter]

The long arm of the CA tax man is trying to get more money from film makers. A relative lived and worked in CA (airline pilot) but before he retired he moved home to Texas. If he had stayed in CA, retired and then moved, his retirement income would have been taxed by CA even tho he lived in TX. Pathetic!

[rolling_stone]

Where is my tax break, equal protection under the law and all....

[finnman69]

tax credits are giveaways

shame on you Schwarzenegger

Make it a tax cut or dont do it at all. In fact it will make money for the state.

[texan75010]

Funny how "Corporate Welfare" is OK when it benefits them. For everyone else it's evil. The sooner the libs tax themselves out of existence the better.

Nothing good in the way of movies comes from there anyway.

[Moonman62]

I think my tag line is appropriate for this situation.

[calcowgirl]

Interesting.

Actually, it's disgusting.

Earlier thread:

CA: Schwarzenegger, Núñez join to give movie industry a handout (Taking care of business?)
Posted by NormsRevenge
On News/Activism 08/19/2005 9:26:50 AM PDT · 11 replies · 110+ views

[FOG724]

Smacks of political payoff doesn't it?

[edcoil]

I am in the oil business in Calif. Try being us, we have to pay every tax you can imagine PLUS we have all the fees to pay, inspection fees, storage fee's environmental fees.

We pay more to the government just in fees then almost every other country does just to lift oil.

[bayourod]

"How can anybody lose what is not rightfully theirs to begin with? "
" how in the hell California can lose something they never had"

Same thing I say about people complaining of immigrants taking jobs from them.

[cartman90210]

... or Nigerians and half a dozen other types, I bet.