Film and video production equipment or services

From the 2024 DOR Tax Exemption Study

82.08.0315; 82.12.0315 - Film and video production equipment or services Description Rental of production equipment or sale of production services to a motion picture or video production business is exempt from sales and use taxes. Such equipment includes video, electrical, lighting and motion picture equipment. Purpose To support the motion picture industry and encourage more films to be produced in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $3.300 $3.300 $3.300 $3.300 Local Taxes $1.500 $1.500 $1.500 $1.500 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $3.000 $3.300 $3.300 Local Taxes $0.000 $1.400 $1.500 $1.500 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - No growth is assumed for the estimate, as spending for equipment and services is volatile. - Cost of production is 37% of gross income. - Spending for equipment and services is 20% of the cost of production. - Local revenue estimates use the statewide average local sales and use tax r