While I totally agree with Ken's premise that without the rebate/subsidy/credit there is some tax money that would not be on the table to even talk about,
It is erroneous that the 25% is paid out from the taxes! What Ken wrote is not "Spot on"
The 25% is paid on in-state expenditures.
The state does NOT receive expenditures, and thus is not paying out from money it receives.
You could assume, for example, a 7% NMGRT on in-state expenditures, and then say that the state is giving back ALL of the tax money it receives, plus an additional 2.5 times that amount again paid out of state coffers. That additional money is not coming from taxes that the state is directly receiving on in-state expenditures on films.
Just wanted to throw in a bit of reality here.
For further readinig: http://www.tax.newmexico.gov/Tax-Professionals/Pages/Specific-Industry-Incentive-Tax-Credits.aspx
On 12/7/2010 16:37, Charles Esty wrote:
***This is a MISP Listserv message. Responses are sent to the list by default.*** ***For more info about MISP and the listserv, scroll to the bottom of the page*** * Spot on, Ken. The subsidy is a 25% return on the taxes that would normally be paid by the production. That is all new money coming in. The State ends up keeping 75% of that new money. It is not money being taken from one budget and doled out to "out-of-state media pros" at the expense of New Mexicans. On the contrary, the out-of state pros bring that money here from out of state, spend 100% of it and we give 25% back to them. Then they turn around and spend a good chunk of that 25%.
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On Dec 7, 2010, at 4:04 PM, Kenneth Knoll wrote:
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