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5/30/07 Pittsburgh Mayor to
Repeal Amusement Tax on Arts Nonprofits. Last week, at the
Greater Pittsburgh Arts Council ceremony honoring business that
support the Arts, Pittsburgh’s Mayor Luke Ravenstahl vowed to
finally repeal the City’s 1.25% amusement tax charged against
nonprofit arts organizations.
The tax repeal will save performing arts nonprofits in
Pittsburgh such as the Pittsburgh Symphony, the Pittsburgh
Opera, and the Pittsburgh Public Theater a total of $450,000 in
taxes, which can be rolled right back into their operating
budgets. The current tax of 5% charged on for-profit sports and
concert tickets (which generate over $9 million per year in
revenue for the City) will remain.
According to a National study by Americans for the Arts,
nonprofit arts and culture organizations generate $166.2 billion
in total economic activity each year, which translates to 5.7
million FTE jobs, $104.2 billion in household income, $7.9
billion in local government tax revenues, $9.1 billion in state
government tax revenues. These numbers clearly demonstrate that
Arts nonprofits should be viewed as an engine for economic
growth and development in a region.
This is a great example of how a regional association like
the
Greater Pittsburgh Arts Council can work with local
government to benefit of the entire region. For the Pittsburgh
Post-Gazette news article by Timothy McNulty go to
http://www.post-gazette.com/pg/07150/789927-53.stm.
3/6/06
Erie Considers
Taxing Nonprofit Arts Organizations.
On Thursday March 2, Erie City
Council will consider a proposal to levy a 3% amusement tax on
all arts and sporting events in the City. Members of City
Council have expressly stated that there will be no exclusion
for nonprofits. Nonprofits like the Erie Philharmonic will be
especially hard hit. While the city looks to nonprofits as a
source of revenue to prevent itself from becoming a distressed
city, Council members overlook the potential of nonprofit arts
organizations to serve as an engine for economic growth.
Ultimately, the tax is expected to cause ticket price increases,
decreased attendance, and fewer performances, let alone the loss
of secondary economic benefit, such as hotels and restaurants
servicing arts events. For more information, go to
http://www.goerie.com/apps/pbcs.dll/article?AID=2006602230386
The Amusement Tax debate in Erie has
ignited a statewide debate. Stuart B. Weiser, a PANO board
member and a long time director of nonprofit arts organizations,
has issued this op-ed piece
on behalf of PANO, and the nonprofit arts community in Erie.
Mr. Weiser has submitted this opinion editorial letter with the
support of Eric Borenstein, Executive Director of Erie
Philharmonic.
On October 20, 2005, Gary Steuer, Vice
President, Private-Sector Affairs, of Americans for the Arts,
spoke at the Arts Council of Erie's 18th Annual Business and
Arts Appreciation Dinner on "Why
Business Should Care About the Arts.” |