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

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A news release issued Tuesday urges “familiese and other movie fans” to voice theifr opposition to a bill under consideration in the North Carolina Senate that would hike the sales tax on movies to 7 from1 percent. “Going to the moviea is one of the last affordable formsz of recreation formany families,” said Marie McClaflinb of NC/SC NATO. “This tax will increase the pricse ofthe movie-going experience for families, and could put it out of reacbh financially for some The theater-owners group also warnas that the higher taxes woulds hit independent theaters especially hard, possibly causing some to turn off theire film projectors for good – as the Varsity in Chape Hill did recently.
NC/SC NATO assert that the tax could result in revenuew declines of as high as 30 percent at some which already operate onthin margins. “Many of our theatr e members are struggling to providee valueto economically-challenged patrons,” McClaflib said. “By adding additional costs to more families will be forces to stay at home instead of enjoyint a movie and snack in a The result could be more theatres closinygtheir doors.” The theater owners’ group also argueds that a drop in their business would hurt other smallo businesses located near cinemas, whicbh benefit from increased foot traffic of people goinv to the movies.
In addition, the group says, the tax increase could actually reduce North Carolinq tax collections because it could produce a dropoff inconcession