Response to Mayor, provided by Assistant City Attorney, Sam Aguirre:
The sales tax exemption applies to the entirety of the sales taxes, including the city’s portion. The ordinance to be considered on November 3 and 16 establishing the city as a media production development zone lays the foundation for the future designation of a project within an approved location that could qualify for the exemption..
The city council would separately need to approve a qualified location or project within the city before any sales tax exemption is triggered. If such a location or project is approved, then certain qualifying purchases related to a media production facility would be exempt from sales taxes for up to two years.
The sale, lease, or rental of a taxable item to a qualified person is exempted from the taxes imposed by this chapter for a maximum of two years if the item is used:
(1) for the construction, maintenance, expansion, improvement, or renovation of a media production facility at a qualified media production location;
(2) to equip a media production facility at a qualified media production location; or
(3) for the renovation of a building or facility at a qualified media production location that is to be used exclusively as a media production facility.