A $192 million tax on “Star Wars” property is too high to pass under the terms of a new federal tax, a watchdog said Thursday.
The Joint Committee on Taxation said in a report that the $200 million property tax for “Star War” was not subject to a state or local income tax because the movie was a franchise that was not part of the tax base.
In a statement, the committee said the new tax could cost the federal government up to $2.2 billion.
The tax would have applied to all property that has been sold, and the government would have had to assess the new property tax based on a new state or federal tax rate of 30 percent.
It could also have applied on the value of the property.
The report also noted that there is currently no law on the books that would require the state to collect the property tax, but that the federal tax could have been levied on the proceeds of a sale.