Motography (Jan-Jun 1918)

MOTOGRAPHY Vol. XIX, No. 1. Petition Congress to Alter Tax Law EXHIBITORS OF NORTHWEST SEEK RELIEF FROM SEAT AND FOOTAGE LEVIES A PETITION will be presented to Congress during the present session, by Motion Picture Exhibitors' Corporation of the North-west. This petition is intended to impress Congress with the inequality of the present war reservation law, as applied to the motion picture industry. It sets forth plainly the lack of equity of the present law, and states that exhibitors of the North-west are in favor of paying the United States Government an amount equal to 10 per cent of the gross receipts, as a substitute for the present seat tax and footage tax. The resolution in full follows: To the Honorable Senate and House of Congress of the United States of America. Washington, D. C. Honorable Gentlemen : Whereas at the last session of Congress there was enacted certain legislation concerning the taxation of theaters, motion picture houses and other amusements, including a tax on motion picture films, and Whereas, it appears that the result of the application of the tax for the period so far involved, since the passage of this law, would indicate a lack of equity in the provisions of same, and Whereas it further appears that the business of the Motion Picture Exhibitors throughout the country and particularly of this district is suffering materially with the result that many exhibitors have found it necessary to retire from business, your petitioners respectfully state and show : Restriction* Are Uujust That the Motion Picture Industry, in volume, is the seventh among the activities of this country ; that in the creation, production, manufacture, distribution and exhibition of photo plays, many thousands of loyal Americans find their livelihood ; that this industry, contributing so largely to the general prosperity of this country, deserves to be fostered and not restricted in a. measure that threatens its destruction. That the photo play has revolutionized the amusement business, placing as it has before the public, — clean, wholesome entertainment at remarkable cheap prices, and therefore deserves encouragement and support; that the morale of a nation's people is quite as important to conserve during the stress of war as the morale of the army ; that nothing contributes more to create such a morale than good, clean amusement, such as the photo play provides at a price which makes it available to the most humble. Important Aid to Government The stage and motion picture screen have been important factors in placing before the public the activities of the government and in the spreading of its policies, including the encouragement of army enlistment, promotion of Liberty Loans, fostering of food conservation, spreading of patriotism and creation of public sentiment. In all these activities the exhibitors of the Nation have, as a unit, offered the use of thenscreens for the furtherance of every government desire. That the lack of equity in the present law lies in the fact that while on its face the law would indicate an intent to tax amusements on the basis of ten per cent of receipts, that its present applications does not so work out, as the following would indicate. Points Out {Inequalities of Law The exhibitor charging twenty cents (including war tax) pays a tax of two cents per admission, equivalent to ten per cent. The exhibitor charging fifteen cents (including war tax) pays a tax of two cents per admission, equivalent to fourteen per cent. A lack of equity appears in the tax on admissions to children which in all instances is one cent. Theaters charging an admission price of one dollar or more, paying a tax only of one cent on childrens' tickets, pay practically no tax in comparison to the admission price. Motion picture exhibitors who charge ten cents for children (including war tax) pay a tax of ten per cent. Motion Picture exhibitors, of which there are many, charging five cents only for children (including war tax) pay a tax of twenty per cent. Motion Picture exhibitors charging five cents admission pay no tax. Increased Prices Justified To meet the many increases in cost of operation, to avoid confusion in ticket selling, many exhibitors have increased their price of admission, which increases as a rule, are thoroughly justified from the standpoint of economic necessity. Judging by the drop in theatrical business, extending apparently over the entire United States, and being particularly true of the district represented by this Association, it would seem that the public, without a true appreciation of the situation, resents the amusement taxation. That your petitioners lack not in patriotism, nor do they desire to avoid a just share of the burden of financing our country in this present great war, but the following plan is submitted for consideration as a more equitable taxation of amusements, more simple from the standpoint of accounting for both the exhibitor and the government, and less damaging to the exhibitor. Would Tax Gross Receipts This plan contemplates a change of the present law to the extent that instead of the tax applying to admissions as it does now, that same be levied on a percentage basis of the gross receipts arising from admissions. As to the amount of this percentage, ten per cent is suggested as an equitable basis in comparism with the taxation of other industries. Attention is directed to the fact that the special taxation enacted in 1914, being a special tax levied on proprietors of "theaters, museums or concert halls," still remains in force. This tax which requires a payment by each opera house owner or manager of from fifty to one hundred dollars according to the seating capacity of the theater, was not repealed when the war revenue law of October 3, 1917 was passed and is still in effect. This provides for double taxation of amusements and more than the industry can consistently absorb. That the footage or film tax, enacted October 3.