(The Center Square) – Seattle City Councilman Sara Nelson on Wednesday proposed a Seattle Film Commission to advocate for Seattle’s film and television industry to boost the local economy and create jobs.
Nelson said an 11-member Film Commission representing Seattle’s film industry would be tasked with advising city leaders on developing policies and programs to bring film and television production to Seattle.
“Seattle’s film industry has requested this mandate for years and I have made it a priority from day one,” Nelson said in a statement. “Every movie or television show set in Seattle but filmed elsewhere represents the loss of hundreds of jobs for our creative staff, millions of dollars not being spent in our local economy, and a missed opportunity to build our amazing… present the city to the world.”
However, experts doubt the economic benefits of filming in the city.
For example, the city of Seattle claims that movies like “Sleepless in Seattle,” “Singles,” and “10 Things I Hate About You” brought millions of dollars to the city and created high-paying jobs in the 1990s in the entertainment industry, but that’s not the whole story.
Jarrett Skorup, senior director of marketing and communications at the Mackinac Center, warns that companies simply go where they can get the best deal.
Skorup used the Michigan state case, where film companies were subsidized up to 40% of production costs. The state “ended up losing about a billion dollars on these types of programs, and we’re seeing the same thing from state to state,” Skorup said in a phone call with The Center Square.
The standard relationship between media companies and state governments is that the companies receive tax credits from the states in which they film.
Skorup doesn’t think Seattle would get much tax revenue from subsidizing a certain percentage of a film’s production, based on his state-level findings. He believes that any economic benefits derived from funding the film industry must be weighed against the impact of spending the same money on different government programs or by taxpayers themselves.
“You’re going to get a return on investment if you spend it on public schools – police – parks, and there’s no reason to think there’s a better return on investment if you spend it on movies,” Skorup said.
The Tax Foundation notes on its website that many state governments have already enacted film production incentives, including film production tax credits. These states have ended up with modest returns at best.
According to the Tax Foundation, states claim that film production incentives help create jobs, but the jobs tend to be temporary positions, often transplanted from other states with limited advancement opportunities.
“Moreover, competition between states transfers a large portion of potential profits to the film industry, not to local businesses or state coffers,” the Tax Foundation notes.
The bill will be voted on September 14 by the Seattle Economic Development, Technology and City Light Committee. If passed, it would go to the full City Council vote as early as September 20.
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