Nate is an East Bay community papers editor for the Bay Area News Group and East Bay Times. He edits the Hills weekly Alameda Journal, Berkeley Voice, El Cerrito Journal, Montclarion and Piedmonter newspapers; Central Costa County's weekly Concord Transcript and Walnut Creek Journal papers; and East Contra Costa's weekly East County News.
Businesses are moving out of California — or at least building new facilities in other states — partly because this is such a high-tax state. That’s the frequent claim of Republican politicians who have tried for many years to bludgeon Democrats with this issue.Among the biggest draws for businesses moving to other states are the property tax exemptions they often get — no levy for the first 10 years or so in Texas, for just one example.
Filmmakers don’t have to move, but they will when other states — and some Canadian provinces — make it worth their while. Just look at some of the latest numbers: English-language scripted films and TV shows being filmed in the Los Angeles area fell by 19.7 percent in 2023 compared with the previous year, reports Film LA, which tracks regional production. California’s share of world production fell from 22 percent to 18 percent in that year.
This is a tax credit that works. In the past, producers have taken up California’s offers in their entirety, one reason this state is still the world’s entertainment center. Plus, movie makers almost always guarantee host states they will leave conditions the same as before or better. Such is the tendency when renting houses and other property as shooting locations.
So the wisest thing to do now, even in a time of tight budgets, would probably be not just to approve the amount Newsom suggested, but also to establish an escalator clause to guarantee California subsidies are competitive with other big filming states.
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