Taxes

You Oughta Be in Movies

Idaho’s “film industry”–whatever that may be–could benefit from tax incentive bills which will be pushed in the upcoming legislative session.

The GUARDIAN would find these selective tax breaks comical if it weren’t for the fact these folks are serious. One proposal would give the Hollywood types a 10% income tax rebate or tax credit–which is VOODOO ECONOMICS since the nominal income tax rate in Idaho is only 8%!

Representative Jana Kemp is a proponent of this little gem of a law and hopes the extra 2% break will encourage movie moguls to spend even more Hollywood cash in Idaho. But she also wants to rebate the sales tax on what they spend for supplies. So other than bringing publicity and more people to Idaho what good is this proposed special interest legislation?

Kemp and Gov. ”Hollywood Dirk” note that other states already have rebates or tax incentives for the movie folks and SURPRISE! They get movie moguls to come to their states to make films. Montana officials claim they can shave $358,000 off the production costs of a $5 million movie. GUARDIAN says the people of Montana lose $358,000 in revenues in that scenario.

Offer the same tax deal to plastic surgeons and Boise will be the Mecca of the flat chested, wrinkled women of the world.

Eliminate hunting and fishing license fees and we can attract more hunters and fishermen.

Then there is all that revenue Idaho is missing from those “special service” houses in Nevada featured on HBO late night. Those gals would love to come to a tax-free Idaho. Of course HBO would save on the cost of producing movies here as well.

Micron has done really well with the tax breaks–it will be a decade before they ever pay state income tax. They have been able to build two three new plants and create thousands of jobs with the Idaho tax breaks which include Boise and Ada County property tax relief…only problem is the jobs and plants happen to be in Virginia, Singapore and China!

Those incentives for Albertson Food Stores may help the economy as well. CEO Larry Johnston has brought national publicity to Boise as one of the most overpaid execs in America and by some estimates he will walk away with $40,000,000 if the chain is sold.

All it will take for this Hollywood mania to disappear will be a true life documentary on the Idaho legislative process, images of Mel Gibson crucified in Rexburg, or the XXX remake of Lady Godiva filmed on an illegal trail at Tamarack.

Comments & Discussion

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  1. If Jana, Dirk and the rest want to schmooze with the stars they can do it in Sun Valley or in Hollywood. If a business organization wants to come here (even a “hit and run” business like a movie company), let ’em pay their way just like everyone else has to. The only permanent jobs I can see here are those created by the state to “lure” movie producers here.

    This sounds suspiciously like a fad-of-the-month someone picked up at an NGA conference.

  2. Micron expansion pumps 860 jobs, $1.2 billion into Manassas: Financial News – Yahoo! Finance
    http://biz.yahoo.com/bizj/051104/1187600.html?.v=1

  3. What did Manassas, Virginia give Micron that Idaho and Boise didn’t?

    Ed Note–$2 million for starters. See the link on the previous comment.

  4. Ironically, these schemes are in large part inspired by the success of “Napoleon Dynamite,” an indie sleeper hit that got made on a good old-fashioned shoestring. Now, that film has indeed pumped up the tourist economy in Preston, but that was a complete fluke and who knows how long Napoleon fever will last?

    Sure, having a big-time film production come to town can inject some money into the local economy (primarily the service economy), and sure, it’s exciting and all (any other old-timers remember the thrill of “Bronco Billy”?)– but, as usual, the legislature has it ass-backwards. Incentives should be for locally-based, homegrown outfits. There’s plenty of aspiring filmmakers in the city who could use a boost and would be more than happy to film at home. If Hollywood wants to come to town, fine, just make sure they pay their way.

  5. Let's not give Idaho Away
    Nov 16, 2005, 1:27 pm

    If we added up all the money that the state has spend over the years trying to get movies made in Idaho it would be MORE than what the state has collected from all the movies made in the state.

    Blaine County makes more money in property taxes from Hollywood types than the state has collected on all the movies made here as well.

  6. Let's not give Idaho Away
    Nov 16, 2005, 1:27 pm

    If we added up all the money that the state has spend over the years trying to get movies made in Idaho it would be MORE than what the state has collected from all the movies made in the state.

    Blaine County makes more money in property taxes from Hollywood types than the state has collected on all the movies made here as well.

  7. Let's not give Idaho Away
    Nov 16, 2005, 1:27 pm

    If we added up all the money that the state has spend over the years trying to get movies made in Idaho it would be MORE than what the state has collected from all the movies made in the state.

    Blaine County makes more money in property taxes from Hollywood types than the state has collected on all the movies made here as well.

  8. Let's not give Idaho Away
    Nov 16, 2005, 1:27 pm

    If we added up all the money that the state has spend over the years trying to get movies made in Idaho it would be MORE than what the state has collected from all the movies made in the state.

    Blaine County makes more money in property taxes from Hollywood types than the state has collected on all the movies made here as well.

  9. Let's not give Idaho Away
    Nov 16, 2005, 1:27 pm

    If we added up all the money that the state has spend over the years trying to get movies made in Idaho it would be MORE than what the state has collected from all the movies made in the state.

    Blaine County makes more money in property taxes from Hollywood types than the state has collected on all the movies made here as well.

  10. The Idaho State Department of Commerce, or whatever they call it now, has been spending money for years trying to promote Idaho in the movies. They see it as a way to throw some scratch to towns like Rupert and such but the main idea is it is a great way to advertise the beauty of Idaho and sell, sell, sell. I’m not sure Napoleon did a great job of it but it sure is going to get some potential folks excited when they watch the movie and see the only black person in the show arrive in Idaho on a bus and leave a few days later. And I don’t think she was going back to Salt Lake City.

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