Evening star., 1937-04-23

MI COlllplIldIlOu III o v lie dn0
VI vaudeville theaters Of the
4 District would have to pay
a license tax of 2 per cent on their
monthly gross receipts under the
terms of H. R. 6038, one of the reve-
nue measures before the House Dis
trict Committee.
The license tax would be imposed
on these places for the privilege of
engaging in the theatrical business in
the District, to quote from the bill
1t would be applied to 55 of the
theaters here, according to recent
count. 1t would not be levied against
the relatively small number of the
theaters offering only vaudeville or
stage shows. The tax would begin
July /.
The yield is figured roughly to
amount to 100000 a year. Such a
calculation is based on the assumption
the gross receipts of the SIS theaters
totals some $l0,000,OO0 year. Some
theater owners say $10,000,0O0 is too
high an estimate for gross receipts
and suggest 100000 or $8,OO0,000.
These estimates, it is said, do not
include the amount of the Federal
amusement tax charged at the time
of the purchase of admission tickets.
The bill provides for such deductions
from the gross receipts on which the
privilege tax would be levied.
The intention is that the tax should
be paid out of the profits of the thea
ter operator for the bill carries a
clause stating 1T shall be unlawful
for such operator to increase the price
of admission by reason of this tax"
How this provision could be enforced
is question left unanswered in Off
cial circles. In fact, there are direct
suggestions that the operators could
easily pass the tax on to the movie
patrons. 1t is said the price Of ad-
mission could be boosted because of
some increase in theater labor costs.
Others insist the Government has no
present right to control the price of
admission, that the provision surely
would be ruled by the courts to be
invalid.
An additional tax on theaters was
one of the prospective new revenue
measures taken under study by Dis
trict officials more than a year ago
when the budget problem became
acute. One of the arguments for the
tax was that the theaters not only
were reaping large profits, but that
a great percentage of the money was
taken cut of the District and paid to
stockholders in the chains.
Opponents of the bill insist that
only 35 per cent of the theaters are
owned by the large circuits. They
argue also that theaters have to pay
heavy real estate and the other
property taxes and protest particu-
larly against being singled out" for
a special tax. 1t is claimed that
some of the operators would be
pleased to make as much profit as
the per cent tax on gross receipts
which it is proposed they may in the
privilege tax.
Motion picture houses now pay
license fee of $50 a year under the Dis
trict's general license law. The fee is
intended only to cover the cost of
regulation and inspection. Theaters
having stage shows pay an annual
license fee of $50 During the past
fiscal year the total of license fee
collections by the District was S4O3,-
600 and of this sum the theaters paid
in s1,760 Mediums and clairvoyants
pay license fee of $3.50 year, dairies,
$3.50; abattoirs, S100; wholesale fish
dealers, $50; employment agencies,
s100, and restaurants, SIS, to give an
idea of the range of the fees.
Some supporters of the plan for the
privilege tax on theaters are suggest
ing that the bill be broadened to in
clude other forms of commercial
amusement. One is that vaudeville
and legitimate theaters be included
along with those using motion pic
lures. Another is that professional
base ball, foot ball, wrestling and box
ing exhibitions likewise be taxed and
that the levy be applied also to
carnivals and circuses of the CON-
mercial operators.
The bill provides that each oper-
ator Of a motion picture or combi-
nation movie and vaudeville theater
shall file with the District assessor
certificate containing the name
under which he is operating, the
names and addresses of persons con-
stituting the association, partnership
or other type of business organiza-
tion, the names and addresses of the
principal officers, the resident manager
and the attorney in fact. Until such
certificate was filed the operator
could not engage in his business.
A sworn statement showing the gross
receipts of the theater would have