Some Legal Information

Sales Tax Exemptions
North Carolina. Motion picture production companies are entitled to a cap of one percent on sales and use tax purchases or rentals of item used in the making of films in North Carolina. Companies interested in the tax break should register with the Sales and Use Tax Division of the North Carolina Department of Revenue, P.O. Box 25000, Raleigh, NC 27640 or telephone (919) 733-3661. Companies may apply for a Streamlined Sales Tax Agreement Certificate of Exemption (Form E-595E) which allows them to pay no tax at point-of-purchase or rental and submit the one percent payment directly to the NC Department of Revenue. In most instances, visit to the Charlotte Office, 5111 Nations Crossing Rd., Charlotte, NC 28217, (877) 252-3052, will allow a company immediate designation of a certificate number.

Effective October 1, 1997: An act to exempt from sales tax audiovisual master tapes used in the motion picture, television, and audio production industries. "(22a) Sales of audiovisual masters made or used by a production company in making visual and audio images for first generation reproduction. For the purpose of this subdivision, an 'audiovisual master' is an audio or video film, tape, or disk or another audio or visual storage device from which all other copies are made. For the purpose of this subdivision, a production company is a person engaged in the business of making motion picture, television, or radio images for theatrical, commercial, advertising, or educational purposes."

South Carolina. If a production company expects to spend $250,000 in South Carolina on a motion picture or television program within a 12 month period, it is entitled to a point-of-sale exemption on all state and local sales and use taxes. This includes an exemption on the 7% accommodations tax. A certificate of exemption is issued by the SC Department of Revenue and can be applied for by contacting the South Carolina Film Commission at (803)737-0490

Location Permits
North Carolina. Film permits and fees are practically unheard of statewide. State law prohibits charging permit fees for shooting on state property.

South Carolina. In most cases there are none. The few exemptions are: Within state-owned facilities such as parks or similar properties, contact the South Carolina Parks, Recreation and Tourism Department, 1205 Pendleton Street, Suite 110, Columbia, SC 29201, (803)734-0122 or the South Carolina Film Office at (803)737-0490.

Filming on NC State Roads and Highways
Filming on state roads and highways requires a written request to the North Carolina Film Office. This request must provide specific details about the planned production activity and should be submitted with reasonable lead-time when possible. With proper lead-time, the agency is able to provide quick turnaround with Highway Patrol and Department of Transportation approval, as required by law. Written requests must be faxed to the North Carolina Film Office at (919)715-0151.

Special Effects and Explosives Guidelines and Regulations
South Carolina. A license for pyrotechnic operators is required when using any pyrotechnic effects. All licensing and permitting requirements for the handling, supervision and discharge of pyrotechnic materials within the state of South Carolina apply to the use of pyrotechnic materials before a proximate audience (including exterior shooting and in enclosed assembly areas).

  1. Successfully completed a comprehensive written examination covering this code and state laws pertaining to the display of proximate audience pyrotechnic special effects.
  2. Received a competency certificate from a national organization that promotes the safe use of pyrotechnic special effects and approved by the SCFM.
  3. Has been licensed for the use of pyrotechnic special effects by another state approved by the SCFM. The issuing officer will determine the reciprocity on a case-by-case basis.
  4. A letter from both the authority having jurisdiction and a licensed operator stating their satisfaction as to the qualifications of the operator and approved by the SCFM.

*The SCFM shall designate the type of pyrotechnic operator's license issued on an individual basis.

* Permits may be issued for:

  1. One day to 30 consecutive days. ($300.00)
  2. Greater than 30 consecutive days to 180 consecutive days. ($600.00)
  3. Special, one performance, less than five effects, and an audience of less than 20 persons. ($25.00)

Labor
North Carolina/South Carolina. North Carolina and South Carolina are right-to-work states that welcome both union and non-union productions.

Child Labor
North Carolina. Exemptions from the Child Labor Provision of the Act:

N.C. Department of Labor - Wage & Hour Act
Cherie K. Berry, Commissioner of Labor s95-25.5

Youth Employment. -(a) No youth under 18 years of age shall be employed by an occupation without youth employment certificates unless specifically exempted.

The Commissioner of Labor shall prescribe regulations for the youth and employers concerning the issuance, maintenance and renovation of certificates. Certificates will be issued by county directors of social services, subject to review by the Department of Labor; provided, the Commissioner may by regulation require that the Department of Labor issue certificates for occupations with unusual or unique characteristics.

(g) Youth employed as actors, or as models or performers in motion pictures or theatrical productions or in radio or television productions are exempt from all provisions of this section except the certificate requirements of subsection.

The process of applying for Youth Employment Certificates has moved to an online system. Film companies should contact the North Carolina Department of Labor at www.nclabor.com. Simply click on the "Youth Permit" tab. Detailed instructions are included which explain the application process, step by step. If there are any questions or concerns, contact Jim Taylor at (919)807-2796, or toll-free at 1-800-NC-LABOR.

South Carolina. Section 41-13-20, South Carolina Code of Laws, 1976 (as amended), provides that the Commissioner of Labor shall promulgate regulations that will prohibit oppressive child labor practices but be no more restrictive or burdensome than applicable federal laws or regulations. It is the purpose of these regulations to resolve any contradictions between state and federal law and to protect the well-being of the children at work in this state. The state of South Carolina adopted the US Child Labor Laws under the Fair Labor Standard Act (WH Publication 1330, revised July 1978). Exemptions from the Child Labor Provision of the Act include: 71-3105-d. Child Labor Provision does not apply to children employed as actors or performers in motion pictures, theatrical, radio or television productions.

Doing Business
North Carolina. Film companies considering incorporation as a North Carolina firm, or film-related companies seeking business licenses to operate within the state, should communicate with the Department of the Secretary of State at (919)733-0641 or 1-800-228-8443 for one-step service.

South Carolina. Nonresident companies wishing to do business in South Carolina must obtain a Certificate of Authority to Transact Business in South Carolina or withhold 2% of each payment on any contract services performed in the state as required by Section 12-9-310 of the South Carolina Code. For more information, contact the office of the South Carolina Secretary of State
(803)734-2126 or the South Carolina Film Office at (803)737-0490.

Worker's Compensation
South Carolina. Employers employing four or more workers full time or part time are required to purchase workers' compensation coverage. Workers' Compensation for private business is predominantly purchased through private insurance companies. The cost is based on job classification and averages $3.61 per $100.00. Employers do, however, have the flexibility of applying to the South Carolina Workers' Compensation Commission to pay claims directly as a self-insured employer. To exclude a business from the provisions of the Worker's Compensation Act, an employer must file an Employers' Notice to Reject (Form), with the South Carolina Workers' Compensation Commission in Columbia, South Carolina. The notice becomes effective 30 days after receipt by the commission. The employer must post the notice in a conspicuous place in the business in which employees are employed, or serve it personally to each employee. For further information, contact the South Carolina Workers' Compensation Commission at (803)737-5704.

Unemployment Security
South Carolina. Contributions to the unemployment trust fund must be paid by the businesses having a payroll of $1,500.00 or more in a given quarter. Unemployment Insurance is 2.4% of taxable payroll for a period of 24 months. After that time, rates are computed based on the experience of the employer. In addition to the contribution rate there is also an assessment, known as the Contingency Assessment, of .06% on the taxable wages reported each quarter. In some cases, it may be possible to report wages and pay compensation in a company's home state. The decision to grant reciprocity with another state for an individual company is decided on a case-by-case basis. For example: A company with operations in multiple states that has an active account in their home state if both states agree. For further information, contact the South Carolina Employment Security Commission at (803)737-3075.

Income Tax
South Carolina. Employers are required to withhold taxes on income paid to individuals, both resident and nonresident, for services performed in South Carolina, when the total wages paid are in excess of $400.00 per year. Nonresidents paying tax on income earned in South Carolina may deduct the amount of taxes paid to South Carolina against taxes owed in the employees' home state. For Further information, contact the South Carolina Department of Revenue (803)898-5040 or the South Carolina Film Office (803)737-0490.

O Visas for Foreign Film, Television and Video Personnel
The O visa category enables foreign national producers, directors, and many other film or television personnel (and their essential crew members) to enter the United States to work on television, film and video productions. Artists and entertainers, as well as directors and other essential technical and creative personnel who have a very high level of accomplishments in the motion picture or television industry can qualify for O-1 visa classification. Crew members, who are essential to the production either because of a pre-existing, longstanding working relationship with the O-1 director or producer or because they will be involved in pre- and post-production work essential to the completion of the production, can qualify for O-2 visa classification to accompany the O-1 individual to the United States.

Foreign movie and television personnel entering the United States in O-1 and O-2 visa status can remain in the United States as long as necessary to complete the production activity, with an initial visa validity period of 3 years. Extensions of O-1 and O-2 visa status can be obtained to complete the production, as needed.

Individual O-1 and O-2 visa petitions are "pre-approved" by the Immigration and Nationality Service before the individuals enter the United States. This enables the production firm to know in advance which members of the production will be admitted to the United States to participate in production activities. Recognizing the special scheduling needs of film and television personnel, O-1 and O-2 visa petitions are usually handled quickly by the INS, as are the O-1 and O-2 passport visa stamp applications by the U.S. Consulates and Embassies

© Copyright The Charlotte Regional Partnership, Inc. 2007 The Charlotte Regional Film & Video Guide and the Charlotte USA Design are trademarks of The Charlotte Regional Partnership, Inc. All rights reserved. Reproduction of the contents of this guide, in whole or in part, in any medium including Internet Web pages or links, is expressly forbidden without the written consent of the Charlotte Regional Film Commission. This guide book is published by the Charlotte Regional Film Commission as a reference and no endorsement is implied. Information compiled as of February 2007. While every attempt has been made to ensure that the information contained in this guide is accurate and current, it cannot be guaranteed.