So no sooner did we succeed in getting the bill passed in Harrisburg that averted the disastrous Plan C (on 9/17) than we were forced (the evening of 9/18) to face the sudden announcement that the budget agreement in Harrisburg included a new sales tax on arts and culture, an action that had received absolutely no discussion or debate beforehand. Surprise! So what exactly happened? In Pennsylvania, like most states, arts activity admissions and tickets are exempted from sales tax. The budget deal in essence removed that exemption, which would impose the 6% state sales tax on all such revenue. Since Philadelphia has an extra 2% sales tax (or will, after the new 1% for five year tax is added) the local tax in Philly would be 8%. Another wrinkle - the state budget deal also eliminated the exemption for commercial entertainment activity such as concerts and commercial theatre. This would cover everything from small music clubs to major rock concerts. Since Philadelphia imposes a 5% ...
Periodic musings on arts, culture, creative economy and philanthropy issues from the President and CEO of the Bonfils-Stanton Foundation in Denver. You can also follow me on Twitter at http://twitter.com/gsteuer.