The Swartz Report: CinemaCon 2024 – A Property Tax Perspective

Last month, you may recall I discussed the power of AI in the workplace and the seminars David Sukenik from our office was attending. As a result of the four courses he virtually participated in, we are now subscribers of ChatGPT4. Many thanks to Dean Bezdek and Centriq Group, LLC for setting up this course. (To learn more about Centriq Group, LLC and their offerings, please visit their website.)

Speaking of Technology…

We recently upgraded our copier and I was playing around with all the new, fancy features. While standing at the copier, I discussed ChatGPT4 with David and what my blog this month would sound like if it was created by ChatGPT – take a read 😊

CinemaCon 2024: Insights and Trends from the Heart of Las Vegas – A Property Tax Perspective

Last week, I had the privilege of attending CinemaCon 2024, held at the iconic Caesars Palace in Las Vegas. This pivotal event in the cinema industry is not just a gathering for film aficionados but also a critical touchpoint for professionals like myself who specialize in property tax issues related to cinema properties. Joined by my good friend Mike Hagan, CFO of B&B Theaters, we sought to deepen our connections with cinema owners and gain insights into the future of the industry, crucial for our property tax advocacy efforts.

Leveraging Connections for Enhanced Property Tax Solutions

Our longstanding relationship with B&B Theaters, for whom we have conducted numerous property tax appeals, positioned us uniquely to engage with other industry stakeholders. CinemaCon offers an invaluable platform for sharing experiences and challenges related to property tax management within the cinema industry. The discussions we had were insightful, highlighting shared concerns and innovative solutions that can be applied across various jurisdictions.

Impact of Industry Trends on Property Valuations

Several key trends identified at CinemaCon have direct implications for property tax considerations:

1. Technological Upgrades: As cinemas invest in advanced technologies like laser projectors and state-of-the-art sound systems, the valuation of these properties becomes more complex. These enhancements can increase a property’s assessed value, necessitating astute tax strategies to manage potential increases in property tax obligations.
2. Reimagining Spaces: The shift towards providing luxurious seating and comprehensive amenities requires significant capital investment. These improvements can affect property assessments and, consequently, property taxes. Understanding these changes is essential for accurately appealing tax valuations and ensuring fairness in taxation.
3. Diversity in Content and Format: The trend towards offering a wider array of content, including live events and special screenings, can alter a theater’s revenue streams and impact its financial valuation. This diversification, while beneficial for attracting a broader audience, also adds layers of complexity to the valuation process for tax purposes.

The Future Outlook from a Tax Perspective

The optimism about the future of the movie industry, despite competition from streaming platforms, suggests a robust potential for continued investment in cinema properties. This growth outlook necessitates ongoing vigilance in property tax management to ensure that assessments are fair and reflective of true market values. It’s an exciting time for those of us in property tax services, as we align our strategies to support our clients through these evolving challenges.

Conclusion

Attending CinemaCon 2024 provided us not only with insights into the trends shaping the movie theater industry but also reinforced the importance of our work in property tax services. For clients like B&B Theaters and others in the cinema space, staying ahead of these trends means better preparing for the future financial landscapes and tax obligations. The insights garnered from this event will directly enhance our ability to advise and represent our clients effectively.

As the industry continues to evolve, so too will the strategies needed to manage property tax implications.  We look forward to using these insights to assist our clients in navigating the exciting future of the movie theater industry.

WOW, right????

While this is not necessarily the wording I would traditionally use in my blog, I thought I would provide an unedited version generated in literally, seconds.

So, how do we embrace this technology to our benefit? Stay tuned as you will have to determine if this is me OR if this is AI going forward.
HINT: Betting money says ME.

As always, I appreciate your feedback and comments.  or .