Virginia- State legislators were loath this year to raise the tax on a pack of smokes but support increasing a tax on in-room hotel movies.
The General Assembly on Wednesday approved an extra 5 percent tax on pay-per-view movies and video games in hotels and motels to bolster a fund used to lure film crews to Virginia.
The House of Delegates passed the measure 69-27 after Del. John Cosgrove, R-Chesapeake, tried but failed to divert the new revenue to transportation projects.
Others objected to Cosgrove's proposal, including a lawmaker who noted that many movies rented in hotel rooms are adult films.
"Might we be in fact relying upon the porno industry to build roads in Virginia?" said Del. Bob Marshall, R-Prince William County. "Because the films that go into these hotels in fact are clearly not, you know, Mickey Mouse and Donald Duck."
Sen. Louise Lucas, D-Portsmouth, [pictured] who sponsored the bill, SB1421, objected to the allusion to adult films.
"Absolutely not!" she wrote in a text when told of the comments on the House floor regarding adult films.
The bill already has passed the Senate.
In-room films already are charged a 5 percent state tax, with the revenue going to the state general fund.
The new tax, which increases the total charge to 10 percent, would go to the Governor's Motion Picture Opportunity Fund.
Bud Oakey, a lobbyist for the Virginia Production Alliance, said the new tax would generate about $1 million annually for the state motion picture fund.
Oakey said there's little data on what proportion of hotel movie sales involve adult films.
Rita McClenny of the Virginia Film Office said last year the fund received $200,000 in state money.
By comparison, Oakey said, Tennessee has a state motion picture fund of $20 million.
Supporters hope the extra money will help Virginia lure more lucrative productions like the Emmy-winning "John Adams" HBO miniseries.
Virginia has lost out on 10 film projects since 2006 because it can't compete with the incentives from other states, said Del. Jennifer McClellan, D-Richmond. Those productions would have spent an estimated $356 million, she said.
"Virginians' hands are tied by how much we can stimulate the economy, but there's one area where we can," McClellan said.
The Virginia Hospitality and Travel Association supported the increase in the in-room entertainment tax, making it easier for lawmakers to vote for it. However, supporters of the Virginia tobacco industry successfully blocked Kaine's effort to gain legislative approval for raising the cigarette tax by 30 cents a pack.
