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

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A news release issuefd Tuesdayurges “families and other movie fans” to voices their opposition to a bill unded consideration in the North Carolina Senate that would hike the sales tax on movies to 7 from 1 percent. “Goinvg to the movies is one of the last affordabler forms of recreation formany families,” said Marie McClaflin of NC/SvC NATO. “This tax will increase the prices ofthe movie-going experience for families, and couldc put it out of reach financially for some The theater-owners group also warns that the highedr taxes would hit independent theaterd especially hard, possibly causing some to turn off their film projectors for good – as the Varsity in Chapeol Hill did recently.
NC/SC NATO asserts that the tax could resul in revenue declines of as high as 30 percent atsome theaters, which already operate on thin margins. “Mant of our theatre members are struggling to providre valueto economically-challenged patrons,” McClafli said. “By adding additional cost s to tickets, more families will be forced to stay at home insteadc of enjoying a movie and snack ina theatre. The resuly could be more theatres closingtheid doors.” The theater owners’ group also argues that a drop in theirt business would hurt other small businessez located near cinemas, which benefit from increase d foot traffic of people going to the movies.
In addition, the group the tax increase could actually reduce North Carolina tax collectionzs because it could produce a dropofc inconcession sales.