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MillimeterNew York City Announces Sales Tax Exemption For Productions
Nov 25, 2002 12:00 PM
Film and Video Productions Get Break, According to Mayor’s Office of Film, Theatre & Broadcasting
Good news for producers whose final film, commercial or television show format is digital - or carried electronically. Starting December 1, 2002, any expenditures on goods and services used during the pre-production, production or post-production of such projects are exempt from city and state sales tax.
Currently, New York is unique in its stance toward taxation on film and television production activity, because it is classified as a manufacturing activity that results in "tangible personal property." When the film/tv project is being created for ultimate sale, it is exempt from sales tax on goods and services consumed during production of the project.
Until recently, "tangible personal property" was defined in the existing tax law as film or tape - meaning that only projects delivered in these mediums were eligible for the exemption. Beginning December 1, any film or television project that may be delivered in a medium that can be carried electronically, including digital, can take advantage of this exemption - and save production dollars.
To get started, producers need to register as sales tax vendors in New York State, and proceed to obtain a resale certificate, which can be presented to suppliers when purchasing goods or services. For more information and links to these forms, visit www.nyc.gov/html/filmcom/html/nystax.html.
