State Balances Budget on the Backs of Arts Organizations

(September 20, 2009) - On Friday evening, Pennsylvania's state legislators announced a budget deal, balanced in part by a 6% sales tax on nonprofit cultural organizations.

The deal, which is expected to pass the full legislature in the next ten days, is expected to raise $100m to balance the budget.

Nonprofit cultural organizations are currently exempt from the sales tax on concert and other entertainment tickets; the proposal would lift this exemption.  Other items that would be taxed to generate new revenue include an additional 25 cents per pack on cigarettes, a tax on cigarellos (small cigars), expanded gas-drilling leases on state land.

A proposal has also surfaced to dedicate a portion of the tax revenues in support of organizations affected by the tax; no details about this idea are available at this time.

The tax is likely to have a devastating effect on cultural organizations, many of which have been hit hard by the recession.  To speak out and take action on this issue, click here.