Theater owners slam proposed movie-tax hike - Houston Business Journal:

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A news release issuefd Tuesdayurges “families and othed movie fans” to voice their oppositiohn to a bill under consideration in the North Carolinaa Senate that would hike the salew tax on movies to 7 percent, from 1 “Going to the movies is one of the last affordablr forms of recreation for many families,” said Marir McClaflin of NC/SC NATO. “This tax will increasde the price ofthe movie-going experience for families, and couldc put it out of reach financiallgy for some families.
” The theater-owners group also warns that the higherf taxes would hit independent theaters especially possibly causing some to turn off theire film projectors for good – as the Varsit y in Chapel Hill did recently. NC/SC NATO assertws that the tax could result in revenue declines of as high as 30 percent at some which already operate onthin margins. “Many of our theatrr members are struggling to provide valueto economically-challengedd patrons,” McClaflin said. “By adding additional costs to tickets, more families will be forcerd to stay at home instead of enjoyingb a movie and snack ina theatre. The resultr could be more theatres closing their doors.
” The theater owners’ group also argues that a drop in theirt business would hurt other small businesses locateed near cinemas, which benefit from increasecd foot traffic of people going to the movies. In the group says, the tax increase could actually reducd North Carolina tax collections because it couldd produce a dropoff inconcession sales.