Section 7-9-86 - Deduction; gross receipts tax; sales to qualified film production company. - New Mexico Statutes

7-9-86. Deduction; gross receipts tax; sales to qualified film production company.

A.     Receipts from selling or leasing property and from performing services may be deducted from gross receipts or from governmental gross receipts if the sale, lease or performance is made to a qualified production company that delivers a nontaxable transaction certificate to the seller, lessor or performer.   

B.     For the purposes of this section:   

(1)     "film" means a single media or multimedia program, including an advertising message, that:   

(a)     is fixed on film, digital medium, videotape, computer disc, laser disc or other similar delivery medium;   

(b)     can be viewed or reproduced;   

(c)     is not intended to and does not violate a provision of Chapter 30, Article 37 NMSA 1978; and   

(d)     is intended for reasonable commercial exploitation for the delivery medium used;   

(2)     "production company" means a person that produces one or more films for exhibition in theaters, on television or elsewhere;   

(3)     "production costs" means the costs of the following:   

(a)     a story and scenario to be used for a film;   

(b)     salaries of talent, management and labor, including payments to personal services corporations for the services of a performing artist;   

(c)     set construction and operations, wardrobe, accessories and related services;   

(d)     photography, sound synchronization, lighting and related services;   

(e)     editing and related services;   

(f)     rental of facilities and equipment; or   

(g)     other direct costs of producing the film in accordance with generally accepted entertainment industry practice; and   

(4)     "qualified production company" means a production company that meets the provisions of this section and has registered or will register with the New Mexico film division of the economic development department.   

C.     A qualified production company may deliver the nontaxable transaction certificates authorized by this section only with respect to production costs.