P.L. 1999, CHAPTER 221, approved September 22, 1999

Senate, No. 1074 (Second Reprint)

An Act providing expanded sales and use tax exemptions for ¹the¹ film and video industry, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. Receipts from sales of tangible personal property for use or consumption directly and primarily in the production of film or video for sale are exempt from the tax imposed under the "Sales and Use Tax Act." This exemption shall apply to tangible personal property including motor vehicles, replacement parts without regard to useful life, tools and supplies, but shall not apply to tangible personal property the use of which is incidental to the production of film or video.

b. The receipts from sales of the services of installing, maintaining, servicing, or repairing tangible personal property for use or consumption directly and primarily in the production of film or video for sale are exempt from the tax imposed under the "Sales and Use Tax Act."

c. ²[The receipts from the sale of food and drink delivered to or prepared at the location or studio of a film or video in production for consumption by the staff or employees of the film or video producer during the production of a film or video are exempt from the tax imposed under the "Sales and Use Tax Act;" provided however, that the vendor shall charge and collect from the purchaser a tax on such sales at the rate then applicable, and the purchaser may apply for a refund of the tax pursuant to section 20 of P.L.1966, c.30 (C.54:32B-20).

d. The rent for the occupancy of a room for at least 14 consecutive days or more by staff or employees of a film or video producer during the production of a film or video are exempt from the tax imposed under the "Sales and Use Tax Act;" provided however, that the vendor shall charge and collect from the purchaser a tax on such sales at the rate then applicable, and the purchaser may apply for a refund of the tax pursuant to section 20 of P.L.1966, c.30 (C.54:32B-20).

e.]² For the purposes of this section, "film or video" means motion pictures including feature films, shorts and documentaries, television films or episodes, similar film and video productions whether for broadcast, cable, closed circuit or unit distribution and whether in the form of film, tape, or other analog or digital medium ¹, but does not include any film or video that is produced by or on behalf of a corporation or other person for its own internal use for advertising, educational, training, or similar purposes¹.

2. This act shall take effect on the first day of the third month following enactment and apply to property sold and services rendered after that date.