Public Comments for 12/04/2024 Joint Subcommittee to Evaluate Tax Preferences
Last Name: Ayoub Organization: Pleasant Pest Control and Sanitation Services, LLC- Tina Pleasants Locality: Richmond

Pleasant Pest Control & Sanitation Services LLC is a small business based in Henrico, VA. Tina's letter outlines: 1) over 10 years working with film production 2) positive impact of film on the business - direct impact on the business itself - direct impact on the staff (competitive wages, ability to send kids through school, make substantial purchases, etc)

Last Name: Ayoub Organization: Hawkeye Graphics Locality: Richmond

As a small business co- owner, Hayden Townsend's letter cites specific ways that film production has benefitted his business. His shop has been able to expand physically. His staff has also profited and been able to achieve large, VA- based purchases, i.e. most have bought homes locally. Hawkeye Graphics is based here, in Richmond, VA.

Last Name: Freeman Organization: Print & Graphic Communications Association Locality: Grand Island

Protect Virginia Printers: Maintain Competitive Tax Exemption • Since 1995 Virginia law has exempted Virginia-based printers' sale of raw materials (catalogues, letters, brochures, non-administrative envelopes, containers, and labeling, for example) from state sales tax when sold to out of state advertisers. • This exemption was created to make Virginia printers more competitive with out of state printers, and it has been vital for the continued existence of Virginia's printing industry. • This exemption is set to sunset on July 1, 2025, and will have an immediate impact on Virginia based printers, who generate $1.8 billion in economic impact and employ over 9,000 Virginians across the Commonwealth. • Advancements in technology have made it possible for printing projects to be completed anywhere in or outside the country, which has intensified competition. Projects worth tens of thousands of dollars are frequently won or lost based on the difference of just a few hundred dollars in quoted price. The exemption helps offset this challenge and allows Virginia printers to remain competitive. • Without this exemption, the additional costs could force many clients to take their business out of state. This would place Virginia companies at a significant disadvantage and threaten local jobs. • The printing industry is already facing strong headwinds in adapting to rapid technological advancements while maintaining affordability for customers. Removing the sales tax exemption would only add to this burden. • The exemption has been extended regularly since 1995, including in 2022, when SB101 (Hanger) passed the Senate 39-0 and the House 97-3 (Freitas, Helmer, Scott, P. voting against). • While a 2020 Tax Preferences Report by the Department of Taxation estimates a revenue impact of $3.1 million due to the tax credit, the report does not account for the negative impact to jobs and revenue that would occur from removing this important tax exemption. The major impact to the industry would likely wipe out any supposed positive revenue caused by removing the exemption, possibly having a negative revenue impact as jobs and projects move out of state. Contact: Timothy Freeman, Co-President, Print & Graphic Communications Association, 716-691-3211, tim@printcommunications. org Henry Watkins, Commonwealth Strategy Group, 804-212-6438, henry@commonwealthstrategy.net

Last Name: Ryan Organization: The Cafe at Maidens Locality: Powhatan, VA

The attached letter in intended to convey my support for film incentives in Virginia, and was written from the perspective of a small business owner who has seen first-hand the kind of positive impact the film industry can have. My submission lays out several ways that working with the film industry has helped my restaurant in Powhatan County, and how the same benefits we have enjoyed can (and have) helped other small businesses across the Commonwealth.

End of Comments