Momentum Backed Tourism, Film Bills Pass House, Senate
Momentum Mississippi-backed tourism legislation has been approved by both Chambers of the Mississippi Legislature.
The tourism bill cleared its final hurdle in the Senate Friday, February 9, after a motion to reconsider was tabled. On Thursday the bill was approved by a vote of 29-15, but held on the motion to reconsider. Some Senators opposed gaming companies that wanted to build non-gaming entertainment facilities, such as golf course, being able to take advantage of the tax rebates proposed in the bill. Companies investing in tourism could qualify for a 30 percent sales tax rebate over 10 years.
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The tourism bill joins a Momentum Mississippi supported film bill, which was passed by both the house and the Senate earlier in week.
The differences in the bill will be worked out in conference committee.
The Senate finance committee amended the tourism bill to better define the types of retail businesses that would qualify as part of a tourism project. The legislation is designed to increase tourism investment in the state. The amended House version passed Tourism and Ways late Monday afternoon. The film legislation is designed to simplify the incentive process to make the state more attractive to major movie and television productions.
The amendment House and Senate versions added language to better define the types of retail that would qualify and included golf pro shops, gift shops, concessions and other related business that are part of the project. The Senate version was also added “other similar retail outlets within a project that are uniquely related to the project and restaurants within a hotel project, shall be included within the term "tourism project." "
Sen. Tommy Robertson said the intent is to insure certain types of retail, such as clothing stories that located with the tourism project did not receive a competitive advantage over existing businesses.
The legislation was developed from research conducted by the Momentum Mississippi Tourism Committee chaired by MEC member Dave Dennis of Specialty Contractors. The tourism and film initiatives have also received significant input in their development process from the Mississippi Tourism Association (MTA) the Mississippi Development Authority's tourism and film officials and public and private sector tourism professionals from every corner of the state. The film incentives were discussed in-depth at a recent annual meeting of the MTA.
Rep. Diane Peranich, chair of the House Tourism Committee, and Robertson, chairman of the Senate Finance Committee, introduced the legislation designed to meet objectives to increase investment in state's tourism and film industries.
“This is truly a compromise and a bill that serves us well,” said Rep. Diane Peranich, chair of the Tourism Committee.
Peranich and Robertson, along with House Ways and Means Chairman Percy Watson, spoke on the tourism and film industry at the MEC Legislative Scrambler, Wednesday, Jan. 24.
There was a minor adjustment made on the film bill last week, that would allow television programs to reapply for incentatives after the $5 million threshold is met.
Ward Emling, director of the state’s film office, said this would help encourage long-running, on-location programs to consider Mississippi.
The only other change with the tourism bill came last week when the Tourism Committee initially passed the legislation and changed the wording in the section of eligible project from “racetracks” to “motor speedways”
Craig Ray, director of tourism for Mississippi, said the legislation is one more option his department will have to attract business the state.
Momentum Mississippi is a public/private partnership organized by Governor Haley Barbour to implement recommendations from the MEC-initiated Blueprint Mississippi study and to advance other economic development programs, as well. The organization of business and community leaders from around the state is chaired by Anthony Topazi, CEO of Mississippi Power, who will also chair MEC in 2008-09.
Under the proposed legislation, new, “Private Investment,” in tourism that meets certain criteria could be eligible to receive up to 30 percent of its initial investment through a sales tax rebate for a maximum of 10 years. There is also a proposal to simplify incentives for the film industry, repealing the payroll tax credit and including the payroll as part of a rebate film makers receive on money spent in Mississippi during the production of films and movies.
The bill would establish minimum investment levels for Tier I, II and III counties. The minimum investment would be $25 million in Tier I, $20 million in Tier II and $15 million in Tier III.
Examples of qualifying businesses are theme parks, water parks, cultural or historical attractions and marinas.
In order to make sure businesses are true tourism venues, there will also be certain types of businesses excluded from receiving the sales tax rebate.
Under the legislation, businesses also would be required to provide independent marketing information, to show the number anticipated out-of-state visitors to the attraction as well as the ratio of out-of-state to in-state visitors anticipated.
This proposed legislation is similar to previous tourism legislation; however, by establishing a list of qualifying businesses and by requiring independent marketing research, a tourism sales tax rebate program will truly target businesses and investment that will grow the state’s tourism industry.
The film bill is designed to simplify incentives for the film industry, repealing the payroll tax credit and including the payroll as part of a rebate film makers receive on money spent in Mississippi during the production of films and movies.
The changes would make Mississippi’s rebate the easiest and most straightforward incentive in the country and help give us a competitive advantage when competing for productions of all sizes.
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