NC Tax Reform Plan Delivers Devastating Blow to Moviegoers and Movie Theatres

RALEIGH, N.C., July 22, 2013 /PRNewswire/ -- North Carolina's movie theatres are being dealt a potentially crippling blow this week that will have moviegoers paying more at the box office and many theatres struggling to stay in business. The tax reform plan agreed upon by Governor Pat McCrory and approved by the General Assembly includes an admission tax for movie tickets of at least 4.75 percent. This is an increase that will have far-reaching consequences that will negatively impact a significant contributor to North Carolina's economy.

The admission tax will cause the price of movie tickets to rise – potentially resulting in an unintended consequence of the tax reform plan. Lost tax revenue from lost ticket sales and lost concession sales may exceed the money generated by the tax increase. "The plan's supporters claim it will put more money into the pockets of hard working North Carolinians and will boost their quality of life," said Rob McHone, president, National Association of Theatre Owners of North & South Carolina and director of operations, Carousel Cinemas. "In reality, the increase in the price of movie tickets will put this form of entertainment out of reach for many of our customers – something that is bad for business and bad for North Carolina."

In addition, the tax threatens the success of restaurants, malls and other retail sectors surrounding our state's movie theatres. If fewer people are going to the movies, fewer people will be going out to eat or shopping at nearby businesses. "We are an economic hub for our communities," said Herman Stone, owner, Stone Theatres. "This tax not only takes direct aim at North Carolina's movie theatres, but at all of the businesses that rely on our industry."

It also adversely impacts the thousands of people employed by theatres across the state. "This is not a jobs plan," said Stone. "If theatres are struggling to stay afloat, it may affect the very livelihoods of the people who need these jobs the most – senior citizens and our young people."

"Increasing the taxes on movie tickets will not solve the state's revenue challenges," said McHone, "but it will serve to cause grave harm to a sector that only provides widespread economic benefits."

About the National Association of Theatre Owners (NATO) of North & South Carolina

The National Association of Theatre Owners (NATO) of North & South Carolina is a non-profit trade association that represents movie theatres throughout the state of North Carolina. The membership consists of the largest chains, regional circuits and many independent theatre owners.

SOURCE National Association of Theatre Owners of North & South Carolina