Sunday, November 10, 2024
Hawai'i Free Press

Current Articles | Archives

Sunday, April 20, 2014
C’mon, Mr Producer, Do You Even Know What All The Laws Are?
By Tom Yamachika @ 5:01 AM :: 5017 Views :: Tax Credits, Taxes

C’mon, Mr. Producer, Do You Even Know What All The Laws Are?

by Tom Yamachika, Interim President, Tax Foundation of Hawaii

One of the bills now making its way through the Legislature concerns the motion picture, digital media, and film production tax credit. That’s the credit used by TV shows and movie producers to coax them to come to Hawaii to shoot, as opposed to other venues like Louisiana and Puerto Rico which, I understand, offer juicier production credits but…well…they’re Louisiana and Puerto Rico.

The bill, Senate Bill 2079, says that a production would have to be in compliance with “all applicable statutes, ordinances, rules, and regulations of the federal, state, and county governments” to be eligible for the credit. If, for example, the production's equipment truck is clocked going 26 mph in a 25 mph zone, does that then mean its $5 million production credit is forfeited? I mean, really. Who among us can even say that they even know where to look up all of the laws, ordinances, and rules?

Apparently this bill grew out of a reality TV series on the History Channel called "American Jungle." It depicted "clans" hunting on the Big Island...but the folks depicted were neither native nor accurate. The TV producers applied for a permit to film on state lands and were denied it. Yet folks looked at the maps shown on the show and concluded that they did indeed shoot on state land. Furthermore, there were some night hunting scenes—but night hunting is illegal on both private and public land. Our Department of Land and Natural Resources was unhappy and apparently persuaded legislators to introduce the bill. DLNR also appeared at legislative hearings to testify in support of the bill.

(By the way, the bill also says that reality shows are not allowed any production credit whatsoever. Whoever sponsored the bill must have been VERY unhappy.)

When I went to one of these legislative hearings to offer comments on the bill, I pointed out that the laws and regulations already provide penalties for noncompliance, so why should we add forfeiture of the production credit on top of that? I was told that it wouldn't be realistic to expect a multi-million dollar production to be deterred by a measly $5,000 fine under the land statutes. Furthermore, the production needs to realize that the availability of the production credit is a privilege.

A similar line of reasoning would suggest lawmakers’ pay to be contingent upon compliance with all applicable laws, ordinances, rules, and regulations. Break one, and the state keeps your paycheck. Why? Isn't elected public office a privilege?

Do you think this condition is reasonable? This is not the first time it has been used. It was in a temporary credit for flood victims that was enacted in 2006. It also was proposed in other tax credit bills. So there is a distinct possibility that, if we aren’t careful and if we let this language slip by, conditions like this could become a standard feature in Hawaii tax credits just like the “claim it within one year or lose it” feature that is now in almost all of the Hawaii income tax credits.

To be sure, I am not saying that TV and film producers should be allowed to get away with murder. They should be accountable for what they do just like the rest of us. For example, if a state agency is planning to fine a production, it would be entirely appropriate to withhold enough of the credit to secure payment of the proposed fine since after the production wraps and cast and crew leave town, the producers may be less motivated to care about what happens here. But we shouldn’t be imposing unreasonable conditions either, whether it be on productions or on the rest of us.

- 30 -

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii