GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1320

Short Title:  Tax on Movies.	(Public)

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Sponsors: Representatives Cansler, Brawley, Capps, Gray, Hill, Neely, Ramsey, C. Wilson; Esposito and Starnes.

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Referred to:  Finance.

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May 19, 1998

A BILL TO BE ENTITLED
AN ACT TO REDUCE THE STATE PRIVILEGE TAX ON GROSS RECEIPTS FROM MOTION PICTURE SHOWS.
The General Assembly of North Carolina enacts:
Section 1.  Article 2 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-38.1.  Amusements - Motion picture shows.
(a)	Tax. – A privilege tax at the rate of one percent (1%) is imposed on the gross receipts of a person who is engaged in the business of operating a motion picture show for which an admission is charged.  The tax is due when a return is due.  A return is due by the 10th day after the end of each month and covers the gross receipts received during the previous month.  If a person offers an entertainment or amusement that includes both a motion picture taxable under this section and an entertainment or amusement taxable under G.S. 105-37.1 or G.S. 105-38, the tax in G.S. 105-37.1 or G.S. 105-38, as appropriate, applies to the entire gross receipts and the tax levied in this section does not apply.
(b)	Exemption. – Gross receipts from a motion picture show promoted and managed by a qualifying corporation that operates a center for the performing and visual arts is exempt from the tax imposed under this section if the motion picture is shown at the center and if the showing of motion pictures is not the primary purpose of the center.  As used in this subsection, 'qualifying corporation' and ‘center for the performing and visual arts' have the same meaning as in G.S. 105-37.1(a)."
Section 2.  This act becomes effective October 1, 1998.