Unprecedented lack of a state budget is hurting local nonprofit cultural and arts organizations. On top of less money, they now hear that the state six percent sales tax may be applied to their admission prices. The news was not welcomed by affected organizations in Wayne County.
As was reported by The Associated Press, the plan would extend Pennsylvania’s six percent sales tax to tickets for the performing arts, museums, historical sites, zoos and parks. Senate Appropriations Committee Chairman Jake Corman stated it is partly designed to shift the taxpayers’ share of financing those activities onto their patrons. Much of the money, however, would flow into the state’s coffers to be used to be spent on other programs.
The proposed new tax is included in the current budget version on the table in Harrisburg.
Wayne County Historical Society
For the Wayne County Historical Society, a more immediate concern is the anticipated loss of state grant funding. Executive Director Sally Talaga said that the Society has an operating budget of approximately $85,000 a year, and $10,000 of that has been coming from the state.
In the spring, however, Governor Rendell proposed to save money by slashing all grants distributed through the Pennsylvania Historic and Museum Commission (PHMC). For the last 16 years, the Society has received general operating support money from the PHMC, which matches the allocation given by the county commissioners. In recent years that amount has been $10,000.
General operating funds help cover heat, lighting and other utilities for the museum in Honesdale. The Society hasn’t begun to work on the 2010 budget yet, but the trustees may have to consider dramatically cutting hours and possibly staff time, to make up for the loss. Talaga said that even if the new state budget restored the funding, the time it takes to apply and receive the funds means they wouldn’t expect the funding until late 2010.
Grants for special projects have also been cut, which promises to slow progress on the Society’s Towpath to Trail Project in Palmyra Township, she said.
As for the six percent sales tax, she said she expected they would have to add it to the admission price but could not comment further,
Dorflinger Suydam Sanctuary
At Dorflinger Suydam Sanctuary, alarm has been raised over the proposed tax. Executive Director Joan Gillner said that they would either have to add the tax to the ticket price for their Wildflower concerts and glass museum admission, or absorb the cost. Although the summer concert series did all right, museum visits were down this year, she noted.
Already “operating on a shoe string,” Gillner remarked, they hope they wouldn’t have to raise the concert ticket price, currently $20. Dorflinger also makes use of a state grant from the Pa. Performing Arts on Tour (Pa. PAT), which helps pay expenses for bringing some of their performers to White Mills. Gillner heard that this funding source may be cut.
As many as 3,000 to 4,000 people attend the Wildflower concert series each year, she stated.
Ritz Company Playhouse
Sandy Gabrielson, board member at Ritz Company Playhouse in Hawley, said he has written to State Representative Mike Peifer with his suggestion that not-for-profit organizations should be exempt from the tax or set a revenue limit of $50,000 a year before tax applies. Smaller groups, such as Ritz, will be hurt the most, he stated.
Approximately 5,000 people are expected to attend their plays this year, he said. He reasoned that if the tax is supposed to fund the grant money given out, then with $900 to $1,800 Ritz receives annually from Pa. PAT, Ritz would be better off keeping the six percent than paying the tax. Ritz brings in about $35,000 in box office receipts each year.
Most of their theater attendants are senior citizens, who pay $10/ticket; adding a sales tax and rounding it off, they’d be charged $11. If this means less people will be able to afford to go to the play, he added, how would that help the state budget?
Honesdale, Pa. —
