“This legislation is the first major step Georgia has taken to help the (film) industry and to show it takes the business seriously,” ex plains Greg Torre, Director of the Georgia Film and Videotape Office.
“I’m ecstatic,” remarks Matt Timmons, Vice President of the Georgia Production Partnership (GPP), who participated in the aggressive year long campaign to pass the Bill. Timmons believes Cole’s influence was a crucial factor in the recent changes under the gold dome.
Appointed to his post two years ago by Governor Barnes, Coles says, “When I started the job, the Board and I drafted a wish list of improvements we wanted to implement over a five year period, and tax incentives were at the top of the list.”
According to Timmons, “With the backing of Coles and Barnes it passed remarkably swiftly and it is a big win for a small price. The (film) business is a non- polluting industry that can drop anywhere from $2-$10 million (of revenue) into a town during a production. Some of the general public may perceive the tax breaks as a ‘free ride’ for filmmakers but many other businesses—rental car agen cies, hotels, restaurants—benefit when productions come in.” Over the years, the film industry has generated over $3 billion in revenues for Georgia’s economy, according to the Governor’s office.
Timmons goes on to say that the legislation levels the playing field for Georgia as it competes with other in dustry-friendly states like North Carolina, which offers filmmakers a 1% cap on sales and use taxes related to production equipment.
“North Carolina is the number three state in the country, after California and New York for film production not be cause it offers better locations than Georgia but because it became very aggressive about soliciting the industry at a time when North Carolina needed the business,” says Coles. “On the other hand, Georgia has been focused over the past two decades on its own un pre cedented growth and economic success from a variety of industries, as well as the challenges that come with rapid development.”
Georgia once ranked among the top five states for film production activity but during the mid-1990s dropped to number nine. Coles continues, “Al though Jimmy Carter established a film commission when he was governor, it has taken Georgia a while to demonstrate we are very serious about the business. In the past, local perceptions about the film industry may have been a factor since it was not a traditional ‘smokestack’ industry that would come in and build a lasting manufacturing plant in a town.”
Now, however, with North Carolina enjoying average annual revenues of $350 million and total revenues of $5 billion, Georgia wants a bigger portion of the Southeastern market share. “I think we all have North Carolina envy,” quips Coles. Wilmington, North Carolina, home to 800 crew members and Screen Gems Studios, the largest film studio east of California, has built a strong economy around numerous feature film, television and commercial productions including the popular, weekly teen drama on the WB network, “Dawson’s Creek.”
According to Coles, Governor Barnes is enthusiastic about attracting more filmmakers and Coles says, “I was not at all surprised the legislation passed.”
Greg Torre points out that Barnes made it known during his campaign for governor that he appreciated the economic impact of the film industry in Georgia and planned to support it. “The Governor really shepherded (HB 610) through the fascinating, multi-layered process of passage,” Torre says.
House Bill 610 has two integral components. The first grants an exemp tion from state taxes on the sale or lease of certain digital or high def equipment for broadcast stations. The other segment affects producers of television and mo tion picture products. Exemptions apply when some or all of a production is filmed in Georgia.
Coles views the Bill as being significant because of its breadth and form. Those who lobbied for the legislation, including Torre who spoke before a state senate committee and Matt Timmons of GPP, are especially pleased that HB 610 was accepted and passed as it was originally written.
In the language of the Bill, 'Film Producer' means any person engaged in the business of organizing and super vising qualified production activities. 'Film production company' means any company that employs one or more producers and 'qualified production activities' means the production or post production of film or video projects such as feature films, series, pilots, movies for television, commercials, music videos, or sound recordings used in feature films, series, pilots, or movies for television, for which the film producer or film production company will be compensated and which are intended for nationwide commercial distribution.
Production equipment is clearly defined as items purchased or leased for use exclusively in qualified productions in Georgia, including, but not limited to, cameras, camera supplies, camera accessories, lighting equipment, cables, wires, generators, motion picture film and videotape stock, cranes, booms, dollies, and teleprompters. HB 610 specifies 'production services' to be services purchased for use only in Georgia, including, but not limited to, digital or tape editing, film processing, transfers of film to tape or digital format, sound mixing, computer graphics services, special effects services, animation services, and script production.
Torre has spent a great deal of time educating business and government leaders about the film industry and likes to emphasize that, from an economic standpoint, a film is a manufactured product, similar to a building. Production equipment is analogous to lumber and tools used to construct a dwelling, and actors, animators or special effects technicians are comparable to carpenters, masons or designers. Georgia’s new point of purchase exemp tions will save substantial sums of money for business people who produce films here and will motivate them to keep work in the state. According to the state’s Film Office, Georgia should prove to have one of the most effective and beneficial tax incentives among its competition in the United States.
There is no question Georgia has a reputation for providing outstanding service
“Robert Redford told me he had a better experience working in Georgia, shooting ‘The Legend of Bagger Vance,’ than filming in any other state in the country. There is no question Georgia has a reputation for providing outstan ding service,” says Coles. “I’m immensely impressed with Greg Torre and his team—they become partners with filmmakers, helping them locate what they need. This is what secures repeat business. Georgia is blessed with the most talented crews and outstanding locations, from Savannah to the mountains, and now with our tax incentives we can offer a truly desirable package to producers.”
At press time, Torre was involved in meetings with the Georgia Depart ment of Revenue where HB 610 is under review. The logistics of implementing the Bill, when it becomes effective Jan uary 1, 2002, and the specific terms of the tax exemptions on both products and services are being mapped out. Filmmakers could be granted total exemption on sales and service taxes, or greatly reduced taxes as in North Carolina. “I’m optimistic,” says Torre, “The meetings are going well and I’ve found members of the department favorable to our interests.”
This phase—rules and regulations—represents the end of a long journey for Torre and HB 610. Although it was widely known that the Governor supported the legislation and no opposition to the Bill emerged, Torre says the way in which a bill becomes a law is “an amazing process that keeps you on pins and needles.” Numerous factors can sabotage a bill before it ever reaches a governor.
Anyone who watched Saturday morning cartoons in the 70s may re member Bill, an animated roll of paper who sang “I'm just a bill. Yes, I'm only a bill. And I'm sitting here on Capitol Hill,” and taught kids about lawmaking during ABC’s “Schoolhouse Rock.” He summed up the process in a nutshell. First a group of citizens—in this case Georgia’s film community—share concerns with their senators and lobby for new legislation. Georgia Repre sen ta tives Jeanette Jamieson of District 22 and David Graves of District 125 decided to sponsor House Bill 610. It circulated through several House and Senate com mittees before being signed by the Governor. Most bills die in committee or may spend years in the capitol. Torre says he was unfamiliar with this process initially, but that it revealed itself as the team went along.
Recently the state government further demonstrated its support of Georgia’s Film and Videotape Office with a budget increase for marketing, following the lead of both North and South Carolina. Films have a ripple effect on the economy and benefit communities and institutions in ways that are sometimes hard to measure. Tourism is clearly impacted by films. Movies such as “Midnight in the Garden of Good and Evil,” “Forrest Gump,” and “The Legend of Bagger Vance,” that showcase the gracious architecture, leafy gardens, and flamboyant characters of Savannah have attracted legions of visitors to the city.
On its tourism website, Savannah proudly highlights its popularity among leading filmmakers like Redford and Eastwood, and the long list of feature films that have been filmed there. Be cause it remains green throughout the year, Savannah is also favored for commercials and it is home to an im portant technical center, SCAD, the Savannah College of Art and Design. The city has its own film office that works in partner ship with the state office.
“When ‘Fried Green Tomatoes’ was filmed in Juliette, Georgia around 1990 the town only had one business. After the film’s release at least 12 new businesses were created and they still exist today,” says Coles. Noted Land scape Architect Frederick Law Olmstead designed part of the Druid Hills neighborhood in Atlanta, but often it is the community’s association with “Driving Miss Daisy” that draws the attention of a wide audience who enjoys walking tours of the area each spring. Non-prof it institutions like Agnes Scott College, Callanwolde Fine Arts Center, and the Atlanta History Center, earn income by renting their facilities as locations for films or photography shoots. Agnes Scott’s Gothic Revival architecture resembles an Ivy League school and the Decatur women’s college has been used in movies ranging from “The Four Seasons” to “Scream II.”
Thinking about the big picture, Michael Coles says, “Early on I kept asking ‘What can we do to attract more productions?’ Then I decided to re frame the question and ask ‘Why would anyone come to Georgia?’ The second question helps us to accurately see our assets. Aside from competing for business with neighboring states, we have to compete with the global market, the phenomenon of runaway productions to Canada and other sites.
“When I started my cookie business (The Great American Cookie Com pany) I was not the only one on the block, so I had to find ways to do things a little differently and a little better, “ he adds. “The Advisory Commission plans to leave no economic stone un turned and we want the Georgia film community to know we are here to serve them. Some states have actually established a pool of money used to issue ‘cash back’ incentives to very large productions. However, I don’t see Georgia getting into the business of auctioning to the highest bidder. HB 610 is our first step— like building a quality home, sometimes construction does not move as swiftly as one wants but with a sound foundation the house will last for generations. We want to establish a system for the industry that will succeed long after we’re gone.”