The Quasar Drive-In Theater, located outside Valley, has experienced a rollercoaster of challenges and successes since its inception in 2020. Initially launched as the pandemic shuttered traditional cinemas nationwide, the theater struggled through lockdowns and social distancing measures. However, recent years have seen a resurgence in demand for outdoor movie experiences. Owner Jeff Karls expressed optimism about the theater's recovery, noting that last summer was particularly prosperous. Yet, this progress may be jeopardized by new tax legislation that could impact both movie rentals and concession sales.

Jeff Karls, proprietor of the Quasar Drive-In Theater, reflects on the journey his establishment has taken since opening just before the pandemic. The initial years were marked by significant difficulties as the industry grappled with unprecedented restrictions. Despite these hurdles, the theater began to see positive trends emerge, culminating in a successful season last year. Now, however, Karls faces a new challenge in the form of proposed tax reforms that could potentially undermine the hard-won gains.

One of the key concerns for Karls is Bill LB169, which would introduce a sales tax on movie rentals. This change would require theaters to pay sales tax to out-of-state entities like California and New York, where film distributors are based. Additionally, it would impose a tax on ticket sales at the box office, effectively taxing the same revenue twice. While the financial impact on state coffers might be minimal—estimated at only $23,000 annually—the cumulative effect on small businesses like Quasar could be considerable.

Beyond rental taxes, lawmakers are also considering Bill LB170, which would eliminate the sales tax exemption on snacks such as popcorn and candy. This shift could have a much more substantial impact, with an estimated loss of $49 million in fiscal relief for the state. For Karls, who relies heavily on snack bar sales to maintain profitability, this dual-pronged approach feels like a double-edged sword. He acknowledges the importance of property tax relief but argues that the proposed measures might inadvertently harm the very businesses they aim to support.

Karls remains supportive of efforts to alleviate property tax burdens, recognizing the benefits for landowners. However, he stresses the need for balanced legislation that does not disproportionately affect niche industries like drive-in theaters. As discussions around these bills continue, the future of establishments like Quasar hangs in the balance, highlighting the delicate interplay between tax policy and local business sustainability.