Just the Facts: New Tax Slams Nonprofit Arts and Culture

There are 4,900 nonprofit arts and cultural organizations in Pennsylvania and 86% of these organizations are small, community-based,  and volunteer-driven with annual operating budgets of less than $250,000.

A 6% tax on tickets at PA nonprofit cultural orgs would yield only $12.96 million, less than 13% of the total revenue projected by legislators. (based on statewide nonprofit ticket sales as reported to the PA Cultural Data Project).

Nonprofit arts and culture activity generates $2 billion annually in economic activity and supports over 60,000 jobs statewide.

• Pennsylvania’s 12.4 million residents enjoy 30.6 million visits to arts and cultural organizations every year.
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• Many arts and cultural organizations are counting on tickets purchased to help fill the gap produced by declining government and philanthropic support.
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• The average ticket price for an arts organization is $14 and two in five visits are from children.
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• This tax on tickets could force what the arts and culture industry currently generates downward, and cripple the very source of those revenues.
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• The new policy unfairly singles out the arts – taxing museums and theaters, but not sports, movies or smokeless tobacco.
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• Nonprofit cultural organizations are mission-based and do not make a profit. They are focused on providing accessible and affordable cultural offerings to the general public. A ticket tax works against the fundamental purpose of these charitable and normally tax-exempt organizations.