AMC Can't Deduct Film-Showing Costs, Texas Justices Say

By Paul Williams (April 3, 2020, 5:22 PM EDT) -- Movie theater chain AMC cannot subtract costs of showing films from its state franchise tax liabilities over two tax years because exhibiting the films didn't constitute sales of tangible personal property, the Texas Supreme Court ruled Friday.

The state's justices unanimously sided with the Texas Comptroller of Public Accounts, holding that AMC sold its customers an intangible right to view a movie and rejecting the cinema giant's arguments that a film's creative content was classified as tangible personal property. The justices overturned a Texas appellate court decision entitling AMC to a $1.2 million tax refund for the 2008 and 2009 tax...

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