1.1 	A bill for an act
1.2 	relating to taxation; providing for a sales tax exemption for personal property 
1.3 	used in the preproduction, production, and postproduction of movies, television 
1.4 	shows, documentaries, and music videos;amending Minnesota Statutes 2004, 
1.5 	section 297A.68, by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 297A.68, is amended by adding a 
1.8 	subdivision to read:
1.9 		Subd. 42.Movie, television show, documentary, and music video production.
 1.10 	The sale of tangible personal property primarily used or consumed directly in 
1.11 	the preproduction, production, and postproduction of movies, television shows, 
1.12 	documentaries, and music videos that are produced for domestic and internal commercial 
1.13 	distribution are exempt. Equipment rented for preproduction and production activities 
1.14 	are exempt. "Preproduction" and "production" include all the activities related to the 
1.15 	preparation of shooting and the shooting of movies, television shows, documentaries, and 
1.16 	music videos, including film processing. "Postproduction" includes all activities related to 
1.17 	editing and finishing of the movie, television show, documentary, or music video. This 
1.18 	exemption does not apply to tangible personal property or services used primarily in 
1.19 	administration, general management, or marketing. Machinery and equipment purchased 
1.20 	for use in producing movies, televisions shows, documentaries, and music videos are 
1.21 	not exempt under this subdivision. Food, lodging, fuel, electricity, gas, or steam used 
1.22 	for space heating and lighting, and any property or service for the personal use of any 
1.23 	individual are not exempt under this subdivision.

2.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
2.2 	June 30, 2006.