Independent Exhibitors Film Bulletin (Sep 1934 - Aug 1935)

4 INDEPENDENT EXHIBITORS -FILM BULLETIN PA. AMUSEMENT TAX HITS LOW ADMISSIONS HARDEST ( Continued from Preceding Page ) Difficult as it seemed for many people to believe, the element of personal comfort, day of rest, played an important role in the independents' refusal to accept open Sundays without a fight. A Tax, Too . . . The exhibitors of Pennsylvania got their Sunday movies, but they got a levy slapped on their boxoffices along with it. The two, Sunday shows and an amusement tax, had gone hand in hand during the last few weeks of the legislative mill that ground them out. Warner Bros. Theatre circuit fought valiantly to win the open Sunday, but they offered no opposition to the tax proposal. For them and their parent film producing company, it was better than a fair exchange. The first-run theatres will benefit most from the additional day's business, while the film branch will net many thousands of dollars more each year on additional rentals. U nfair . . . The Eberharter Amusement Tax Act levies one cent on each twenty-five cents, or fraction thereof. This, too, was not objectionable to the circuit. Doesn't it hit the small independent hardest of all! On the ten cents matinee admission, the levy is ten per cent. On the de luxe admission of fifty cents, the tax amounts to only four per cent. So, it is hardly with exuberance that the independents view the liberalization of Pennsylvania's Sabbath laws. Many of them regard it as just bringing them another day's labor — for nothing. What the producers won't take — the tax will! U. A. To Endure Promise 24 . . . After a brief tottering spell following the withdrawal of Joe Schenck and Darryl Zanuck with their 20th Century Pictures, United Artists has apparently setded down again on firm ground. The election of Al Lichtman as president for a period of five years was followed by an announcement that David O. Selznick, producer of successful pictures for RKO and lately for M-G-M, would come over to U. A. to form his own producing unit. (Continued on Page 8) PA. TAX 10 PER CENT ON 10c; 4 PER CENT ON 50c In an effort to clear up conflicting opinions regarding the new Pennsylvania amusement tax law, FILM BULLETIN sent the following wire Monday to the Attorney General: ATTORNEY GENERAL CHARLES MARGIOTTI HARRISBURG PA PLEASE ADVISE DOES AMUSEMENT TAX LAW MEAN THEATRE CHARGING TEN CENTS AT MATINEE PAYS TEN PER CENT WHILE THEATRE CHARGING FIFTY CENTS PAYS ONLY FOUR PER CENT STOP MANY THEATRE OWNERS INTEPRET ACT TO MEAN TAX STARTS AT TWENTY FIVE CENTS ADMISSIONS STOP PLEASE WIRE REPLY COLLECT MO WAX EDITOR FILM BULLETIN This is the reply which came promptly the same afternoon: MO WAX EDITOR FILM BULLETIN AMUSEMENT TAX AT RATE OF ONE CENT FOR EACH TWENTY FIVE CENTS OR FRACTION THEREOF OF ADMISSION PRICE STOP THEATRE CHARGING TEN CENTS MUST COLLECT ONE CENT TAX ON EACH ADMISSION CHARLES J MARGIOTTI ATTORNEY GENERAL COMPENDIUM OF PENNA. AMUSEMENT TAX LAW Following are the high points of the new Pennsylvania State Amusement Tax Act: Includes It includes theatrical or operatic performances, concerts, moving picture shows, vaudeville, circus, carnival and side shows, all forms of entertainment at fair grounds and amusement parks, and all sports, games and matches. On Established Price The tax is on the "established price," meaning the regular monetary charge of any character whatever, including donations, contributions and dues or membership fees. Passes or special reduced rate tickets will be taxed at the same rate as the regular admission price. Permit Every place of amusement will be required to file application for a permit, for which the fee will be One Dollar (#1.00). This permit will have to be renewed before the first of each year during the life of the Act. It can be revoked bv the State if the hold»r fails to comply with all the requirements of the Act. Rate The tax is at the rate of "one cent (lc) for each twenty-five (25c) or fraction thereof of the established price." Manner of Payment On or before the tenth day of ea<-h month permanent places of amusement must file reports of taxes collected during the preceding month. Payment of taxes collected during the period covered by the report should accompany the report. Discount If the report is filed and the tax paid on time a two per cent (2%) discount will be allowed. Penalties If not paid on time, all taxes will b?ar interest at the rate of one per cent per month or fractional part of a month from the date they are due and payable until paid. If anyone should neglect or refuse to make a report and payment as required, an additional ten per cent of the amount of the tax will be added by the department. Exemptions Religious, educational and charitable institutions are exempt. When Effective The Act becomes effective thirty days after its final enactment, which will be Monday, July 22nd. Independent exhibitor leaders are said to be considering the advisability of contesting the constitutionality of the new Amusement Tax Act. They feel thatt the act discriminates against lower admission theatres and might be attacked on that ground. Warners-Indies To Add Tax To Current Admissions David (Skip) Weshner advised FILM BULLETIN that Warner Brothers would add the the new State Amusement Tax to admission prices currently being charged by their theatres. "People have become accustomed to paying taxes on gasolines, cigarettes, etc., and we do not expect to encounter any opposition to this levy," the circuit official declared. At the regular Tuesday meeting, the IEPA voted unanimously to follow suit and pass the tax on to the public.