HOLLYWOOD joins residents and tech companies in fleeing the high taxes in California for neighboring states.
Big studios are finding new homes in New Mexico for cheaper prices.
Is Hollywood leaving California?
Movie and film studies have been leaving Hollywood for New Mexico due to its 35percent tax incentive for the entertainment industry.
Netflix and NBCUniversal have touched down in Albuquerque in 2021.
The new Netflix headquarters is the company’s main North American location and one of the largest film production complexes in the country with 10 sound stages.
Additionally, 26 film and 24 television projects have been produced in the states, according to the New Mexico’s Economic Development Department.
Between January and July 2021, New Mexico reportedly earned $623million from the entertainment industry.
According to Fox, New Mexico expects to spending an additional $8million to incentivize the migration.
Jennifer LaBar-Tapia, film liaison at the Santa Fe Film Office told the Albuquerque Journal last year, “Every year, we’re on this uptick and the movie industry is this very word-of-mouth industry, so when productions come here and have a good experience, they come back, or they tell their counterparts at other studios or other people in the film industry about coming to Santa Fe.”
How are local leaders responding?
Some local leaders in the so called “tamalewood” are opposed to using taxpayer’s dollars to fund the entertainment business.
“If you say we’re attracting all of this spending to the state, that’s great, but what are you spending to get those businesses to come here?” said Paul Gessing, the Rio Grande Foundation president.
“They’re not accounting for that side of the equation.”
Netflix has committed to spending $2billion on production in New Mexico.
The change is also expected to benefit local business, shown by the economic boom the entertainment industry has brought to the state already.
Alicia Keys noted the change saying, “That’s outside money coming into the state of New Mexico.”
View more information: https://www.the-sun.com/news/3336605/is-hollywood-leaving-california/