EmailEmail
PrintPrint
Mayor will eliminate amusement tax on arts
Wednesday, May 30, 2007

Mayor Luke Ravenstahl is vowing to finally eliminate the amusement tax on nonprofit arts groups next year.

And if that happens, it's likely to be dead forever, one arts leader says.

Mr. Ravenstahl announced at the Greater Pittsburgh Arts Council "Work of Art" awards last week that he will cut the current 1.25 percent tax on arts organizations from Pittsburgh's 2008 operating budget, due for release in September. The tax will remain at 5 percent on for-profit sports and concert tickets, where it generates more than $9 million annually for the city.

The cut is estimated to save nonprofits such as the Cultural Trust, Pittsburgh Symphony, Pittsburgh Opera, Pittsburgh CLO and Pittsburgh Public Theater almost $450,000 in total, according to the city's budget office.

Years ago the tax was 10 percent, before being cut in half by 1995's Regional Asset District legislation. The state's 2004 Pittsburgh fiscal bailout required the city to cut it to 2.5 percent for nonprofits, and Mr. Ravenstahl sliced it to 1.25 percent this year.

Once it's eliminated in 2008 "I think it will be very, very difficult for any mayor in the future to reinstitute the tax," said Mark Weinstein, arts council board chairman and Pittsburgh Opera's general director.

"As long as it was 2.5 percent or 1.25 percent, it could go back up."

The tax cut should mostly benefit performing arts groups -- as museums by and large do not pay it -- by helping them keep ticket prices level and woo new patrons.

"It's a huge benefit to them," said Jane Werner, director of Children's Museum of Pittsburgh, who takes over as the arts council's board chair in July. "Anytime more people can attend, it's an important thing to do."

Pittsburgh City Council members have not been notified of the proposed cut, according to council's budget chairman Dan Deasy, but he said the idea "is great. We need to help out our smaller non-profits as much as we can."

"The mayor believes the arts are vital to the community and he's trying to help them out the best he can," said Mr. Ravenstahl's budget director, Scott Kunka.

In 2004 the General Assembly tied its required amusement tax cut to a new "non-resident sports facility usage fee" on visiting athletes and other for-profit performers. Revenues from the fee have grown: budgeted to raise $1.5 million last year, it really brought in $2.37 million, according to the city's annual financial report.

Those facility fees, plus ticket cost increases for sporting events and concerts, should cushion the blow for the city budget next year. But arts patrons should not count on their ticket prices going down -- arts groups are expected to roll the savings from the tax cut into their operating budgets.

After the 10 percent amusement tax was halved in 1995, only the Pittsburgh Penguins dropped their ticket prices.

Mr. Ravenstahl made his announcement toward the beginning of the "Work of Art" awards, a ceremony celebrating businesses and individuals who support the arts. Mr. Weinstein also issued Mr. Ravenstahl and Pittsburgh city government the arts council's "Chairman's Award" for making "considerable contributions to the region's art community."

The Greater Pittsburgh Arts Council is a 129-member organization that supports and lobbies for arts groups around the area.

Cutting the amusement tax has long been one of the council's main priorities. Now that it is being eliminated, Ms. Werner said the council will continue focusing on arts advocacy -- that is, spreading the message about the importance of arts to Pittsburgh's quality of life and economic development -- education and other issues.

First published on May 29, 2007 at 11:09 pm
Tim McNulty can be reached at tmcnulty@post-gazette.com or 412-263-1581.