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Stop the Tax on Arts & Culture in its Tracks

Stop the Tax on Arts & Culture in its Tracks

What were they thinking?! On Friday September 18, Governor Rendell and legislative leaders announced they had reached a deal on the FY10 state budget. Unfortunately, this budget relies heavily on the removal of state sales tax exemptions on tickets and memberships for theater, dance and performing arts events, concerts, museums, historical sites, zoos and parks.

The application of the state sales tax will raise ticket prices by a minimum of 6%. In these tough times, even a small increase in a ticket price can be the deciding factor for a family of four looking to spend an afternoon at the Philadelphia Zoo or the Museum of Art. A tax will decrease the affordability of Philadelphia's myriad cultural attractions - and hurt organizations who are already seeing a decline in admissions and revenue.

Sample Letter for Campaign

Subject: Stop the Tax on Arts & Culture in PA

Dear [ Decision Maker ] ,

I am writing to you to urge that you stop the proposal to apply the state sales tax on arts and cultural admissions and tickets. In these times, the state budget should not be balanced on the backs of nonprofit cultural organizations that provide affordable programming for families of all backgrounds.

There are 4,900 nonprofit arts and cultural organizations in Pennsylvania and 86% of these organizations are small, community-based, and volunteer-driven with annual operating budgets of less than $250,000. A 6% tax on tickets at nonprofit cultural organizations would yield only $12.96 million, less than 13% of the total revenue projected by legislators. (this is based on statewide nonprofit ticket sales as reported to the Pennsylvania Cultural Data Project).

The notion that arts and cultural attractions and events are only for the wealthy is false. Museums, historical sites, libraries, zoos, and the performing arts provide parents and their children with affordable educational experiences. The average ticket price for a nonprofit arts organization is $14, and two in five visits are from children.

The sales tax extension unfairly singles out nonprofit arts and cultural organizations. Sports, movies, and tobacco, which generate considerable amounts of money, have not even been considered.

While some may argue a tax on admissions is "no big deal" - in these times, even a small increase in ticket prices can be the deciding factor for a family of five not taking that trip to the museum.

A tax on the myriad arts and cultural organizations all across Pennsylvania will impact educational services, hurt working class attendees, reduce tourism, and devastate cultural groups. Is a rushed backroom deal to close the state budget worth straining our artistic and cultural heritage? Please consider other sources of revenue as you finalize the budget deal. This proposal is just bad policy.

Sincerely,

Campaign Launched:
September 30, 2009



Background Information

There are 4,900 nonprofit arts and cultural organizations in Pennsylvania and 86% of these organizations are small, community-based, and volunteer-driven with annual operating budgets of less than $250,000.

A 6% tax on tickets at PA nonprofit cultural orgs would yield only $12.96 million, less than 13% of the total revenue projected by legislators. (based on statewide nonprofit ticket sales as reported to the PA Cultural Data Project).

  • Nonprofit arts and culture activity supports over 60,000 jobs statewide.
  • Pennsylvania's 12.4 million residents enjoy 30.6 million visits to arts and cultural organizations every year.
  • Many arts and cultural organizations are counting on tickets purchased to help fill the gap produced by declining government and philanthropic support.
  • The average ticket price for an arts organization is $14 and two in five visits are from children.
  • This tax on tickets could force what the arts and culture industry currently generates downward, and cripple the very source of those revenues.
  • The new policy unfairly singles out the arts - taxing museums and theaters, but not sports, movies or smokeless tobacco.
  • Nonprofit cultural organizations are mission-based and do not make a profit. They are focused on providing accessible and affordable cultural offerings to the general public. A ticket tax works against the fundamental purpose of these charitable and normally tax-exempt organizations.

Data sources:

Americans for the Arts, Arts and Economic Prosperity III, Pennsylvania State Report, 2007; Pennsylvania Cultural Data Project figures, analysis by Greater Philadelphia Cultural Alliance. Based on data for the most recent year for which comprehensive data is available for organizations (FY06 or FY07 depending on individual organizations' fiscal year end); National Center for Charitable Statistics, current as of July 2009; Greater Philadelphia Cultural Alliance "Tempcheck" survey of arts and cultural organizations, March 2009.; Greater Philadelphia Cultural Alliance, 2008 Portfolio.

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