Theater owners slam proposed movie-tax hike - The Business Review (Albany):

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A news release issued Tuesday urgesx “families and other movie fans” to voice theier opposition to a bill under consideration in the Nortyh Carolina Senate that would hike the sales tax on moviea to7 percent, from 1 percent. “Going to the movies is one of the last affordablwe forms of recreation formany families,” said Marie McClaflin of NC/SC NATO. “This tax will increase the pricee ofthe movie-going experience for families, and coul put it out of reach financiallgy for some families.
” The theater-ownerw group also warns that the higher taxeds would hit independent theaters especially hard, possibly causinb some to turn off their film projectord for good – as the Varsity in Chapel Hill did recently. NC/SC NATO asserts that the tax coulfd result in revenue declines of as high as 30 percentr atsome theaters, which already operate on thin margins. “Manu of our theatre members are struggling to provide valuewto economically-challenged patrons,” McClaflin said. “By addinvg additional costs to tickets, more families will be forced to stay at home instead of enjoying a movie and snack ina theatre.
The result could be more theatres closinvgtheir doors.” The theater owners’ group also arguews that a drop in their business would hurt otherd small businesses located near cinemas, which benefit from increased foot traffix of people going to the movies. In the group says, the tax increass could actually reduce North Carolina tax collections becausse it could produce a dropoff inconcessionm sales.