SECTION 1. As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-
“Art dealer”, a person engaged in the business of selling works of art, other than a person exclusively engaged in the business of selling goods at public auction.
“Artist”, the person who creates a work of art.
“Artist Enterprise Zone”, an economic development zone in a city or town, to be designated by the mayor and the city council in the case of a city, or by the board of selectmen in the case of a town, for the economic stimulus of works of arts.
“Department”, the department of revenue.
“On-location sale”, a sale transacted in-person, not by telephonic or other electronic means, within an Artist Enterprise Zone.
“Work of art”, an original and creative work, whether written, composed or executed for ‘one-of-a-kind limited’ production and which falls into 1 of the following categories: a painting; sculpture; drawing; work of graphic art, including an etching, lithograph, offset print, silk screen, or work of graphic art of like nature; a work of calligraphy; or a work in mixed media including a collage, assemblage, or any combination of the foregoing art media; a book or other writing; a play or the performance of said play; a musical composition or the performance of said composition; traditional and fine crafts; the creation of a film or the acting within said film; the creation of a dance or the performance of said dance; any product generated as a result of any of the above categories; provided that a “work of art” shall not apply to any piece or performance created or executed for industry oriented or related production.
SECTION 2. There are hereby established a Pilot Artist Enterprise Zone in the cities of Pittsfield, Fitchburg and Lowell. No later than July 1, 2010, the mayor and city council for the cities of Pittsfield, Fitchburg and Lowell are authorized to designate a specific area located in the “downtown” as the Artist Enterprise Zone.
SECTION 3. Notwithstanding section 2 of chapter 64H or any other provision of General or special law to the contrary, in tax years 2009 and 2010 no excise shall be imposed upon on-location sales of works of art. The department shall establish guidelines regarding the implementation of this section and shall require the submission of evidence relating to the publication, production or creation of the works as may be deemed necessary by the department for the purposes of the exemption. The department may also require an annual submission of an accounting of the numbers of works sold, the type of work sold and the date of the sale. Failure to file this report may terminate an individual’s eligibility for the exemption.
SECTION 4. Notwithstanding sections 3 and 4 of chapter 62 or any other provision of General or special law to the contrary, in tax years 2009 and 2010 an artist to whom this section applies and who duly makes a claim to the department in that behalf shall, subject to paragraph (2) below, be entitled to have the profits or gains arising to him or her from the publication, production or sale of a work of art or works of art be taken as a modification reducing Massachusetts taxable income.
(2) The modification authorized by this section shall apply to the year in which the profit or gain from the publication, production or sale of a work of art is realized. The total modifications allowed in any taxable year shall not exceed $100,000 for any artist.
(3) This section shall only apply to an artist who is a resident of an Artist Enterprise Zone.
(4) The department shall establish guidelines regarding the implementation of this section and shall require the submission of evidence relating to the publication, production or creation of the works as may be deemed necessary by the department for the purposes of the exemption. The department may also require an annual submission of an accounting of the numbers of works sold, the type of work sold and the date of the sale. Failure to file this report may terminate an artist’s eligibility for the exemption.
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