The New York Production Alliance (NYPA), a nonprofit volunteer organization created to maintain, promote, increase and expedite film, video, audio and new-media production in New York State and City, has initiated a marketing fund. The grassroots fund is being built from individual $10 contributions, donated by NYPA members (see New York Special Report story, p. 17).
NYPA member Terry Lawler, executive director of New York Women in Film and Television, explained, "We thought, ‘Everyone can give ten bucks without even thinking about it.’ You’ve got seventy thousand people working the industry, so if everyone gives ten dollars, [the fund will generate] seven-hundred thousand dollars."
Word on the fund-raising drive is just getting out—through company newsletters and other means—and NYPA president Morty Dubin said that money is already trickling in. Monies will be used to aid promotional and legislative lobbying efforts by the city, state and NYPA to help encourage work in New York.
Dubin reported that the first deployment of funds—some $2,500—went to the film commissions of New York City and State. The money was put to-wards a New York booth at the recently concluded Cannes Film Festival. "The marketing budget for the city and state is far less than what it should be," related Dubin. "The NYPA wants to help fill that void through our fund-raising efforts, so that we can not only keep, but attract more production into New York."
The importance of the earlier-alluded-to fund-raising for the purpose of industry lobbying was recently underscored by a bill that preserves New York State and local sales and use tax exemptions in relation to personal property and services used in the making of commercials, theatrical features, TV programs and other projects—regardless of what means is used to deliver the final product. As earlier reported (SHOOT, 5/24, p. 1), this measure was signed into law by Gov. George Pataki (R-NY) and goes into effect on Dec. 1.
The exemptions have for the most part been in place for some 20-plus years, but the language of the longstanding tax law applies to tangible property, meaning that the finished product has to be a videotape cassette, a reel of film or some other physical medium. There was, however, some question as to whether these sales and use tax exemptions for property and services would still be granted if delivery of the final product were done over the Internet, electronically, digitally or via satellite—instead of via a physical medium. These non-tangible forms of delivery would likely not qualify for the exemptions under the letter of the tax law that’s been on the books for several decades.
The NYPA recognized this problem and began lobbying legislators on both sides of the aisle for an amendment to existing tax law. Spearheading this effort were the NYPA’s Albany-based lobbyist, Richard Ostroff, and attorney Steve Solomon of the Manhattan law firm Hutton & Solomon. A specialist in state and local taxation, Solomon serves as an advisor to the NYPA board.
The resulting tax amendment bill was sponsored by Assemblyman Joseph Morelle (D-Rochester) and Sen. Michael Balboni (R-Mineola), and supported by Assembly Speaker Sheldon Silver (D-NYC) and Senate Majority Leader Joe Bruno (R-Saratoga Springs). The measure passed both state houses and then gained the signature of Gov. Pataki.
"Electronic transfer of the final product, satellite relay of the final product, will not be off limits anymore because of tax considerations," related Solomon. "Tax laws are not going to stand in the way of producers doing their jobs the best way they know how."