Signed into Law by Gov Brown on 03/24/2022
This bill increases expense reimbursement percentage allowed to single film or single local media production project from Oregon Production Investment Fund. Extends income tax credit for rural medical providers to medical laboratory scientists and technicians. Allows estimating pass-through business alternative income tax, disallows credit for taxes paid to another state. Exempts small pharmacies from CAT tax.
From an auction of tax credits, fund receipts are dispensed by the Oregon Film and Video Office (Oregon Film) to producers of qualifying movies and TV shows. Last year Oregon Film auctioned $14 million in tax credits spending $12.73 million on moviemaking and $1.3 million in benefits for the citizens who bought the tax credits before the Oregon Production Investment Fund (OPIF) ran dry. This bill increases wage subsidy to 20% and raises the payout for other expenses from 20% to 25% that will drain the fund faster. The cap was raised from $14 million to $20 million, but the higher the cap the more it is subsidized by taxpayers, and these increases is a setup to request a raise in the maximum again.
Bill also increases limit on Multistate Tax Commission Revolving Account. Lowers income threshold for occupants for property tax exemptions that county may adopt for newly constructed single-family dwelling. Requires Department of Revenue to waive penalty or interest due to underpayment or underreporting resulting from authorization of required estimated payments.
It is unfortunate that economic development incentives for community revitalization, and job-creation efforts is used as a carrot to increase the pockets of filmmakers.
Amended to sweeten the pot to exclude small pharmacies with 9 or fewer locations for sales of prescription drugs from the definition of commercial activity and CAT tax, but doesn’t apply to pharmacy benefit managers and prevents retaliatory action against a network pharmacy.