Proposed tax could raise prices on museum, movie tickets
TACOMA, Wash. -- They are home to new films. They host live concerts, art exhibits, sculptures and more.
Now, some movie theaters and museums in Tacoma worry the city could hurt business - or worse.
The nonprofits are fighting plans to reintroduce a ticket tax that hasn't been in place in the city in 50 years.
"My initial reaction was, why are you going after nonprofits?" said Philip Cowan, the executive director of small movie house, The Grand Theater. "That's just not something that cities tend to do."
Tacoma is facing a $30 million budget gap next year, and city leaders propose taxing a handful of non-profits to help make up a portion of that deficit. The current proposal would impose a 5 percent tax on ticket sales above $250, 000.
"It's a tough balance, and that's what the City Council's trying to do," said council spokesman Rob McNair-Huff. "This is a very tough time for the city and the city's having to make some adjustments to live within the revenues that are available."
Earlier this month, the city gave layoff notices to 167 police officers, firefighters, and other employees as part of plans to balance the budget. In response, hundreds packed a city council meeting, hoping to find a better solution beyond laying off first responders.
The proposed nonprofit ticket tax would raise about $600,000 a year, McNair-Huff said, but some arts groups fear it could have a ripple effect on ticket prices and more.
"It feels like a big gamble and roll of the dice by the city," Cowan said. "Anytime you start messing with a successful model, you risk unknown things."
The council was scheduled to vote on the issue on Tuesday, but the vote was postponed, as city leaders work with local arts groups to find a compromise.
A new vote is scheduled for Jan. 31.
Now, some movie theaters and museums in Tacoma worry the city could hurt business - or worse.
The nonprofits are fighting plans to reintroduce a ticket tax that hasn't been in place in the city in 50 years.
"My initial reaction was, why are you going after nonprofits?" said Philip Cowan, the executive director of small movie house, The Grand Theater. "That's just not something that cities tend to do."
Tacoma is facing a $30 million budget gap next year, and city leaders propose taxing a handful of non-profits to help make up a portion of that deficit. The current proposal would impose a 5 percent tax on ticket sales above $250, 000.
"It's a tough balance, and that's what the City Council's trying to do," said council spokesman Rob McNair-Huff. "This is a very tough time for the city and the city's having to make some adjustments to live within the revenues that are available."
Earlier this month, the city gave layoff notices to 167 police officers, firefighters, and other employees as part of plans to balance the budget. In response, hundreds packed a city council meeting, hoping to find a better solution beyond laying off first responders.
The proposed nonprofit ticket tax would raise about $600,000 a year, McNair-Huff said, but some arts groups fear it could have a ripple effect on ticket prices and more.
"It feels like a big gamble and roll of the dice by the city," Cowan said. "Anytime you start messing with a successful model, you risk unknown things."
The council was scheduled to vote on the issue on Tuesday, but the vote was postponed, as city leaders work with local arts groups to find a compromise.
A new vote is scheduled for Jan. 31.
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