Theater owners slam proposed movie-tax hike - Business First of Buffalo:

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A news release issued Tuesday urges “families and other movis fans” to voice their oppositionh to a bill under consideration in the North Carolinsa Senate that would hike the saless tax on movies to7 percent, from 1 percent. “Goingg to the movies is one of the last affordabld forms of recreation formany families,” said Marie McClaflin of NC/SC NATO. “This tax will increass the price ofthe movie-going experiencee for families, and could put it out of reacn financially for some The theater-owners group also warns that the higherr taxes would hit independent theaters especially possibly causing some to turn off their film projectors for good as the Varsity in Chapel Hill did recently.
NC/SC NATO assertsa that the tax could result in revenuwe declines of as high as 30 perceny atsome theaters, which already operate on thin margins. “Many of our theatrr members are struggling to provid e valueto economically-challenged patrons,” McClaflin said. “Bgy adding additional costs to more families will be forced to stay at home insteads of enjoying a movie and snack ina theatre. The resulr could be more theatres closinhgtheir doors.” The theater owners’ group also arguew that a drop in their businessz would hurt other small businesses located near which benefit from increased foot traffic of people goinfg to the movies.
In addition, the grou p says, the tax increase could actually reduce Northb Carolina tax collections because it could produce a dropoff inconcessioh sales.