Local
Legislation: Take It Personally
A Very ‘Taxing’ Situation
by Belinda Judson
Executive Director, Mid-States NATO
In the past few months
36 states have generated proposals for new or increased
taxes. These
bills cover everything
from admissions taxes to food and beverage taxes, taxes
on “adult” materials (such as violent video
games), taxes on “adult” businesses, and statewide
increases on sales tax. Most recently there has been a
flurry of bills that would authorize cities or counties
to impose their own local sales and use taxes or admissions
taxes.
Cities and counties are
looking for these extra monies for a variety of reasons.
Some are proposing add-on taxes
to support local school districts, new highways, new
public transportation systems, new jail facilities, extra
fire
and emergency services, extra police protection, environmental
efforts or new sports stadiums.
Whatever the reason,
these local tax initiatives present some real challenges
for us. Let me explain why.
While it is difficult enough to monitor and react to
state legislation throughout the country, it is next
to impossible
to track local legislation, at least without grass-roots
assistance.
It’s fortunate
that some states, cities and counties cannot impose taxes
without authorization from their state
governments. (Some states also require voter referendums.)
This means proposed legislation will show up on state
legislative tracking reports.
More vexing, of course,
are the municipalities and counties that require no such
state approval for
tax initiatives.
Information on such initiatives are only likely
to show up on city council agendas and in local newspapers.
So what can be done?
Exhibitors can start by acting as “watchdogs” for
local legislative activity and report issues back to corporate
headquarters and/or regional units. Exhibitors possess
an entrée to local politicians and businesses
that your regional unit representatives are not
privy to, making
it easier for them to be aware of and involved
in the political landscape in their towns.
Beyond simply monitoring
and reporting issues, there are active steps an exhibitor
can take
to help fight
new local
taxes.
Many exhibitors have
developed relationships with other business owners in
their communities.
New
taxes could
certainly impact non-cinema businesses as
well. Partnering with other
business leaders in a community can better
make municipal legislators aware of how their
proposals
will affect
not only cinema operators but everyone else
in town – by
forcing potential price increases, job losses and/or closings
throughout an entire business community. Often a city’s
chamber of commerce will help spearhead these
efforts.
Also of great value are
the personal relationships
exhibitors can establish with local lawmakers.
Relationships like
these can ensure representatives will already
be more familiar with an exhibitor’s business and have a better understanding
of an exhibitor’s concerns about
new tax legislation.
How does an exhibitor
frame arguments to
better explain the impact add-on taxes
could have
on a cinema and
its community? By bundling arguments
around all of the various
tax and minimum wage initiatives (where
applicable) being proposed in states
countrywide, a cinema
operator can
give lawmakers an even clearer insight
into the bigger picture
of the rising costs of doing business.
(Thirty-five states currently have minimum
wage legislation.
Eighteen states
and the District of Columbia already
have a minimum wage higher than the federal
wage, and some of
these states
are proposing even higher minimums.)
Cinema operators can
point out that movie theatres operate with slim profit
margins
in order to
provide an affordable
entertainment option for families.
Existing statewide minimum wage increases already
mean higher labor
costs and fewer
jobs for a community’s teenagers,
who are often entering the work force
for the first time. Coupling such a
minimum
wage increase with an increase in state
taxes and a new local option tax on
top of that could mean not only lost
jobs but also jeopardy for the kind
of expansion and facility
improvement that could greatly benefit
a community. Initiatives of this nature
could also necessitate price increases,
which would affect an entire constituency.
An exhibitor should not
hesitate to contact a regional unit for help. The
units exist
to assist
with legislative
campaigns.
More importantly, cinema
operators should not be shy about contacting
city councilmen.
These
are
important issues
and lawmakers need and want to
hear how the people in their communities
will
be personally
affected.
Exhibitors
must
never feel as though their efforts
can’t make a difference.
Nowhere is that “personal” relationship
more important than with local
legislation. 
