Fiscal Note - 5640 SB, Motion picture program/rural (Multiple Agency Summary, Final)
Summary
A Multiple Agency Fiscal Note Summary for 5640 SB, Motion picture program/rural, marked Final, followed by a Department of Commerce fiscal note and a Department of Revenue fiscal note. The summary shows Department of Revenue estimated cash receipts of (21,500,000) for 2021-23 and (43,000,000) for each of 2023-25 and 2025-27, and Department of Revenue operating expenditures of 14,400 for 2021-23 and 18,200 for 2023-25. The Department of Commerce narrative says Section 1(7)(a) requires the program to allocate an aggregate of at least $6,250,000 of qualifying contributions to fund projects in rural communities, and states there is no fiscal impact to the department.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Fiscal Note - 5640 SB, Motion picture program/rural (Multiple Agency Summary, Final).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-01-18-a29483-d237813-5640-fn-final-01-14-22-6d7eea722a/
, SHA-256 cc90783c69c90da9127adf2e38201408fb1fba6c04d51473161a0e7ac6b72023.Full text
Multiple Agency Fiscal Note Summary
Bill Number: 5640 SB Title: Motion picture program/rural
Estimated Cash Receipts
Agency Name 2021-23 2023-25 2025-27
GF-State NGF-Outlook Total GF-State NGF-Outlook Total GF-State NGF-Outlook Total
Department of (21,500,000) (21,500,000) (21,500,000) (43,000,000) (43,000,000) (43,000,000) (43,000,000) (43,000,000) (43,000,000)
Revenue
Total $ (21,500,000) (21,500,000) (21,500,000) (43,000,000) (43,000,000) (43,000,000) (43,000,000) (43,000,000) (43,000,000)
Estimated Operating Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Commerce
Department of .1 14,400 14,400 14,400 .1 18,200 18,200 18,200 .1 18,200 18,200 18,200
Revenue
Total $ 0.1 14,400 14,400 14,400 0.1 18,200 18,200 18,200 0.1 18,200 18,200 18,200
Estimated Capital Budget Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Department of Commerce .0 0 0 .0 0 0 .0 0 0
Department of Revenue .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
NONE
Prepared by: Gwen Stamey, OFM Phone: Date Published:
(360) 790-1166 Final
FNPID 63564
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 5640 SB Title: Motion picture program/rural Agency: 103-Department of Commerce
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact . Factors impacting the precision of these estimates ,
and alternate ranges (if appropriate ), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50 ,000 per fiscal year in the current biennium or in subsequent biennia , complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia , complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Kellee Gunn Phone: 786-7429 Date: 01/10/2022
Agency Preparation: Karen McArthur Phone: 360-725-4027 Date: 01/13/2022
Agency Approval: Joyce Miller Phone: 360-725-2710 Date: 01/13/2022
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 01/14/2022
Form FN (Rev 1/00) 171,009.00 Request # 032-700-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5640 SB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number , the significant provisions of the bill , and any related workload or policy assumptions , that have revenue or
expenditure impact on the responding agency .
Section 1(3) (c) and (d) add supporting the growth and development of the state's film industry in rural communities; and
educational opportunities for students in the arts to the uses of the motion picture competitiveness program.
Section 1(7)(a) requires the program to allocate an aggregate of at least $6,250,000 of qualifying contributions to fund
projects in rural communities.
Section 2(6) increases the total amount of credits claimed during any calendar year from $3,500,000j to $25,000,000
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency , identifying the cash receipts provisions by section number
and when appropriate the detail of the revenue sources . Briefly describe the factual basis of the assumptions and the method by which the cash receipts
impact is derived. Explain how workload assumptions translate into estimates . Distinguish between one time and ongoing functions .
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation ), identifying by section number the
provisions of the legislation that result in the expenditures (or savings ). Briefly describe the factual basis of the assumptions and the method by which the
expenditure impact is derived . Explain how workload assumptions translate into cost estimates . Distinguish between one time and ongoing functions .
There is no fiscal impact to the department. The activities stated in SB 5640 are already part of the normal operating
procedures within the Office of Economic Development and Competitiveness division within the department.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part I and Part IIIA
NONE
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
Motion picture program/rural 103-Department of Commerce
Form FN (Rev 1/00) 171,009.00 Request # 032-700-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5640 SB
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Motion picture program/rural 103-Department of Commerce
Form FN (Rev 1/00) 171,009.00 Request # 032-700-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5640 SB
Department of Revenue Fiscal Note
Bill Number: 5640 SB Title: Motion picture program/rural Agency: 140-Department of
Revenue
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
Account FY 2022 FY 2023 2021-23 2023-25 2025-27
GF-STATE-State (21,500,000) (21,500,000) (43,000,000) (43,000,000)
01 - Taxes 06 - Tax Credits - B & O
Total $ (21,500,000) (21,500,000) (43,000,000) (43,000,000)
Estimated Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1 0.1 0.1
Account
GF-STATE-State 001-1 14,400 14,400 18,200 18,200
Total $ 14,400 14,400 18,200 18,200
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact . Factors impacting the precision of these estimates ,
and alternate ranges (if appropriate ), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50 ,000 per fiscal year in the current biennium or in subsequent biennia , complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia , complete this page only (Part I).
X Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Kellee Gunn Phone: 786-7429 Date: 01/10/2022
Agency Preparation: Van Huynh Phone: 360-534-1512 Date: 01/13/2022
Agency Approval: Don Gutmann Phone: 360-534-1510 Date: 01/13/2022
OFM Review: Cheri Keller Phone: (360) 584-2207 Date: 01/13/2022
Request # 5640-1-1
Form FN (Rev 1/00) 171,683.00 1 Bill # 5640 SB
FNS062 Department of Revenue Fiscal Note
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe, by section number, the significant provisions of the bill , and any related workload or policy assumptions , that have revenue or
expenditure impact on the responding agency .
CURRENT LAW:
Under RCW 82.04.4489 (motion picture competitiveness program), a Business and Occupation (B&O) tax credit is available to
those who make contributions to a Washington motion picture competitiveness program.
The amount of credit claimed for a reporting period may not exceed the B&O tax otherwise due for that reporting period. No
person may claim more than $750,000 of credit in any calendar year, including credit carried over from a previous calendar year.
The maximum credit that may be earned for each calendar year for a person is limited to the lesser of $750,000 or an amount
equal to 100% of the contributions made by the person during the calendar year.
Tax credit earned but not claimed by the person in any calendar year may be carried over and claimed against the person's tax
liability for the next three succeeding calendar years.
The Department of Revenue (Department) must not allow any credits that would cause the total amount of credits claimed
during any calendar year to exceed $3.5 million (annual statewide cap).
No credit may be earned for contributions made on or after July 1, 2027.
PROPOSAL:
This bill increases the annual statewide credit cap from $3.5 million to $25 million.
The bill also states that those claiming the credit and not otherwise receiving funding assistance under an approved motion
picture competitiveness program are exempt from the annual reporting requirements in RCW 82.32.534 and 43.365.040.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency , identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources . Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived . Explain how workload assumptions translate into estimates . Distinguish between one time and ongoing functions .
ASSUMPTIONS
- The proposed statewide credit cap of $25 million will be reached annually. This assumption is based on, among other
factors, the amount of credit claimed historically, and the types of business that claimed the credit.
- It is assumed that the bill will be effective June 7, 2022.
DATA SOURCES
Department of Revenue excise tax returns
REVENUE ESTIMATES
Adopting this bill will result in state revenue loss of $21.5 million in Fiscal Year 2023 and $43.0 million in the 2023-25
Biennium.
TOTAL REVENUE IMPACT:
Request # 5640-1-1
Form FN (Rev 1/00) 171,683.00 2 Bill # 5640 SB
FNS062 Department of Revenue Fiscal Note
State Government (cash basis, $000):
FY 2022 - $
FY 2023 - ($ 21,500)
FY 2024 - ($ 21,500)
FY 2025 - ($ 21,500 )
FY 2026 - ($ 21,500 )
FY 2027 - ($ 21,500 )
Local Government, if applicable (cash basis, $000): Not applicable.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation ), identifying by section
number the provisions of the legislation that result in the expenditures (or savings ). Briefly describe the factual basis of the assumptions and the method
by which the expenditure impact is derived . Explain how workload assumptions translate into cost estimates . Distinguish between one time and ongoing
ASSUMPTIONS:
This bill affects 20 taxpayers.
FIRST YEAR COSTS:
The Department will not incur costs in Fiscal Year 2022.
SECOND YEAR COSTS:
The Department will incur total costs of $14,400 in Fiscal Year 2023. These costs include :
Labor Costs – Time and effort equates to 0.1 FTEs.
- Assist additional taxpayers claiming the credit, answer questions, issue refunds and assessments.
- Set up, program and test computer system changes.
Object Costs - $4,400.
- Computer system changes, including contract programming.
ONGOING COSTS:
Ongoing costs for the 2023-2025 Biennium equal $18,200 and include similar activities described in the second year costs.
Time and effort equates to .01 FTEs.
Part III: Expenditure Detail
III. A - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1 0.1 0.1
A-Salaries and Wages 6,000 6,000 12,000 12,000
B-Employee Benefits 2,100 2,100 4,200 4,200
C-Professional Service Contracts 4,400 4,400
E-Goods and Other Services 1,200 1,200 1,800 1,800
J-Capital Outlays 700 700 200 200
Total $ $14,400 $14,400 $18,200 $18,200
Request # 5640-1-1
Form FN (Rev 1/00) 171,683.00 3 Bill # 5640 SB
FNS062 Department of Revenue Fiscal Note
III. B - Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in Part I
and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
EXCISE TAX EX 3 59,688 0.1 0.1 0.1 0.1
Total FTEs 0.1 0.1 0.1 0.1
III. C - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and dexcribe potential financing methods
NONE
None.
Part V: New Rule Making Required
Request # 5640-1-1
Form FN (Rev 1/00) 171,683.00 4 Bill # 5640 SB
FNS062 Department of Revenue Fiscal Note
File and source
- File
- 2022-01-18_a29483_d237813_5640-fn-final-01-14-22.pdf
- Size
- 291,159 bytes
- SHA-256
- cc90783c69c90da9127adf2e38201408fb1fba6c04d51473161a0e7ac6b72023
- Original
- No public link identified.