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  PANO
  777 East Park Drive, Suite 300
  Harrisburg, PA 17111

  Telephone: 717-236-8584
  Fax: 717-236-8767

Amusement Taxes that Impact Nonprofits

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.” 

Click here for our index of legislative issues.

Also see:
Property Taxes and PILOTS
State Sales Tax

PANO Legislative Action Center: This page includes links to legislation PANO is tracking, information on elected officials, government agencies, media contacts, voter registration and more.


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