HBA-KDB H.B. 939 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 939
By: Hodge
Ways & Means
3/15/2001
Introduced



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.  House Bill 939 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 opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 939 amends the Tax Code to provide that taxes imposed for the
sale, rental, and use of motor vehicles do not apply to a motor vehicle if
the motor vehicle is used 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.  The bill requires the tax that would have been
remitted on gross rental receipts without such an exemption to be deemed to
have been remitted for the purpose of computing the minimum gross rental
receipts tax. 

H.B. 939 provides that a person involved 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 is entitled to a refund from the hotel occupancy
tax. 

EFFECTIVE DATE

July 1, 2001, or if the Act does not receive the necessary vote, the Act
takes effect October 1, 2001.