Film industry community zones; local designation.

Plain English Breakdown

The bill does not provide specific details on what types of regulatory flexibility are allowed, leaving this open to local interpretation.

Film Industry Community Zones in Virginia

This law allows local governments to create special zones for film industry businesses and offers them benefits like reduced fees, taxes, and regulatory flexibility.

What This Bill Does

• Allows cities or towns to designate areas as 'film industry community zones' to promote significant economic activity from the film industry.
• Localities can offer unique benefits such as reduced permit fees, user fees, and gross receipts tax reductions for businesses in these zones.
• Local governing bodies are authorized to enter into agreements for economic development incentive grants with conditions like job creation or capital investments.
• The law allows local governments to provide regulatory flexibility within the zones.

Who It Names or Affects

• Film industry companies looking to set up or expand operations
• Local government officials who manage economic development

Terms To Know

film industry community zone

A special area designated by a locality to promote significant film industry presence and drive economic activity.

economic activity

Business activities that create jobs, income, or other benefits for a community.

Limits and Unknowns

• The bill does not specify how many zones can be created.
• It is unclear what specific regulations might be changed to help film industry businesses.
• Local governments have discretion in deciding the exact tax breaks and fees reductions.

Official Summary Text

Local film industry community zones.
Allows localities to establish, by ordinance, one or more zones in a film industry community, defined in the bill as a zone designated by a locality to promote a significant film industry presence and where such presence drives, or has the potential to drive, significant economic activity. The bill provides that a locality, or another political subdivision acting on behalf of the locality, may offer unique benefits to film industry businesses, along with related businesses that serve the needs of the film industry, looking to locate within a film industry community zone, including the reduction of certain fees and taxes. In addition, the bill provides that local governing bodies are authorized to enter into agreements for the payment of economic development incentive grants to such businesses. The bill also allows a governing body to provide for certain regulatory flexibility and incentives and provides that the establishment of a film industry community zone does not preclude a filmmaker from participating in the Governor's Motion Picture Opportunity Fund and the motion picture production tax credit.

Current Bill Text

A BILL to amend the Code of Virginia by adding in Chapter 38 of Title 58.1 an article numbered 12.2, consisting of a section numbered
58.1-3853.2
, relating to local film industry community
zones
.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 38 of Title 58.1 an article numbered 12.2, consisting of a section numbered
58.1-3853.2
,
as follows:

Article 12
.
2
.

Local
Film Industry
Communit
y Zone
.

§
58.1-3853
.
2
.
Film industry
community zones; local

designation
.

A
. For purposes of this section:

"Film industry" means economic activity produced through (i) filmmaking, (ii) the creation of music videos or animation projects, (iii) the use of recording studios, or (iv) other business primarily intended for the production, distribution, or presentation of film.

"Film industry community zone" means a zone designated by a locality to promote a significant film industry presence within such zone

and where such presence
drives, or has the potential to drive,
significant economic activity.

B. Any locality may establish, by ordinance, one or more
film industry community zones
. Each locality
, or another
political
subdivision
acting
on behalf of the
locality
,
may
offer unique benefits to
film industry
businesses
,

along with related businesses that serve the needs of the film industry,
looking to locate within a

film industry
community
zone.

C. The
benefits
may be provided to businesses
, including
n
ew residential developments
,
located in a film industry community zone and may include (i) reduction of permit fees
;
(ii) reduction of user fees
;
and (iii)
notwithstanding
any other
provision
of law,
reduction of any type of gross receipts tax. In addition, local governing bodies are authorized to enter into agreements for the payment of economic development incentive grants to such businesses with payment of the grants conditioned upon the businesses making certain real property or capital investments, creating and maintaining new jobs, or performing or meeting other economic development objectives
related to the film industry
.

D. The
local
governing body may also provide for regulatory flexibility in such zone that may include (i) special zoning for the district, (ii) permit process reform, (iii) exemption from ordinances, and (iv) any other incentive adopted by ordinance.

E. The establishment of a film industry zone shall not preclude the area from also being designated as an enterprise zone.

F
. Nothing in this section shall be construed as (i) precluding any business from participating in the Governor's Motion Picture Opportunity Fund established pursuant to §
2.2-2320
or (ii) impacting any business's eligibility for any credit available through the motion picture production tax credit pursuant to §
58.1-439.12:03
.