EDITORIAL
supports the arts to the tune of about $7 million a year.
But available data suggests otherwise.
According to the Ohio Department of Taxation, a total of 63 municipalities across the state had municipal admissions taxes in effect from 2014 through 2016, and tax revenue produced by those taxes has enjoyed healthy growth.
There was a 9.9 percent increase from 2013 to 2014, when $28.9 million was collected statewide; and 2016 saw a 23.5 percent spike in municipal admissions taxes over 2015 as collections totaled $37.9 million — all with no increase in the number of cities levying the tax.
So clearly, ticket taxes are not driving people away from sports and entertainment events.
For moviegoers, even a 7 percent tax rate would add 63 cents to an average ticket price of about $9. That’s small change compared to what patrons pay for popcorn and a soft drink. And those buying high-priced concert tickets of $100 or more are not likely to be deterred by a $7 add-on fee.
Regardless, we believe 7 percent is too high a tariff. For two-thirds of Ohio cities with admissions taxes, the rate is just 3 percent, according to the state tax department. Cleveland is the outlier at 8 percent, and a proposal earlier this year to raise Cincinnati’s rate from 3 to 5 percent for social services could not attract enough enthusiasm to even make it to a vote.
With no ticket tax, Columbus currently has an advantage in competing for concerts and events over cities that already have one. With a moremodest tax, the city can tap into steady support for the arts and the arena without forfeiting that advantage completely.
GCAC has based the rate it is seeking on the amount of money it says is needed to shore up Columbus’ nonprofit arts organizations and help Nationwide with ongoing maintenance — which it calculates at about $14 million.
But the arts council has left a major potential revenue source off the table. With no clear legal prohibition and conflicting opinions on the issue, GCAC has declined to include the biggest game in town — college sporting events and Ohio State University football tickets in particular — among tax targets. That’s a source the city council should seriously explore; tapping it could allow for a smaller tax rate to be imposed.
And regardless of the outcome on a ticket tax, we encourage corporate and business leaders to do more to support the arts in Columbus. A vibrant arts and culture scene is an important component to making this city attractive for new businesses and more enjoyable for those who already call Columbus home.