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.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.