Ala. Admin. Code r. 810-6-3-.52 - State Sales, Use, And Lodgings Tax Exemption For Qualified Production Companies
(1)
Purpose. This rule sets forth guidelines and
procedures to be used by the Department of Revenue in the administration of Act
2009-144, as codified in Article 3, Chapter 7A of Title 41 of the
Code of Ala. 1975
.
(2)
Definitions. For
purposes of this rule, and to the extent not inconsistent with the Rules of the
Alabama Film Office, these terms shall be defined as follows:
(a)
Department: The
Alabama Department of Revenue.
(b)
Office: The Alabama Film Office.
(c)
Qualified Production
Company: This term shall have the same meaning as ascribed to it
in
Code of Ala. 1975
, Section
41-7A-42.
(d)
Report:
Statement of a CPA issued upon the completion of the Final Incentive Audit that
provides a summary of the Production Expenditures Expended in Alabama.
(Required by Alabama Department of Commerce/Alabama Film Office Incentives Rule
281-3-1-.02(1)
(w)).
(e)
State-Certified
Production: This term shall have the same meaning as ascribed to
it in
Code of Ala. 1975
, Section
41-7A-42.
(3) Act 2009-144, as codified in Article 3,
Chapter 7A of Title 41 provides for an exemption of state sales, use, and
lodgings taxes levied pursuant to Sections
40-23-2,
40-23-61, and
40-26-1, respectively, of the
Code of Ala. 1975
for Qualified Production Companies
that incur, in the aggregate, $150,000 or more in connection with one or more
State-Certified Productions within a consecutive 12 month period.
(4) The Qualified Production Company must
submit an application to the Office for approval. (See Alabama Department of
Commerce/Alabama Film Office Incentives Rule
281-3-1-.04 for requirements and
procedures)
(5) Once approved, the
Office shall issue an approval letter to the Qualified Production Company and
to the Department notifying both that the Qualified Production has been
approved. The approval letter shall provide the total amount of Incentives
approved and a breakdown of the Incentives awarded by State sales, use and
lodgings tax and by Rebate. Upon receipt of the approval letter, the Department
will issue a state sales, use, and lodgings tax exemption certificate to the
Qualified Production Company. This exemption certificate shall be used by the
Qualified Production Company to claim the exemption from the state portion of
sales, use and lodgings tax when making qualifying purchases and/or
accommodations. Local sales, use and lodgings tax are not exempt and shall be
paid to the vendor at the time of purchase or at the time the accommodations
are provided. The exemption is effective on the date the exemption certificate
is issued by the Department.
(6)
Upon completion of production activities within the State of Alabama on the
State-Certified Production, the Qualified Production Company shall return the
state sales, use, and lodgings tax exemption certificate to the
Department.
(7) The Report is
required to be filed with the Office as provided for in Alabama Department of
Commerce/Alabama Film Office Incentives Rule
281-3-1-.06, and shall identify,
on a city-by-city and county-by-county basis, the amount of total incentives
used in the way of exemptions from state sales, use and lodgings taxes, in
addition to specifically identifying the amount of the total Production
Expenditures eligible for the Rebate.
(8) If a Qualified Production Company fails
to timely submit the Report to the Office as provided for in Rule
281-3-1-.06, the Qualified
Production Company shall become liable for the state sales, use, and lodgings
taxes that would otherwise have been paid.
(9) If the Qualified Production Company,
which is producing a State-Certified Production, incurs Production Expenditures
in an amount less than $150,000, then the Qualified Production Company shall be
liable for the state sales, use, and lodgings taxes that would have been paid
had the exemption not been granted; provided, however, that if the Qualified
Production Company pays the state sales, use, and lodgings taxes due within 60
days of the date the Report was submitted, the Qualified Production Company
shall incur no penalties.
Notes
Authors: Traci Floyd, Angela Till
Statutory Authority: Code of Ala. 1975 , ยงยง 40-2A-7(a)(5), 41-7A-40 through 41-7A-48.
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