When Penelope Reed heard the state budget deal calls for adding a sales tax to performing arts tickets for the first time, she immediately thought of Hedgerow Theatre’s already stretched budget.
“We’re not in a position to add it to our tickets. … Am I going to have to pull back on personnel or quality on the stage? What are those factors when you lose a percentage like that on your budget?” said Reed, producing artistic director of the small, nonprofit theater in Rose Valley.
“If there’s a way to kill the arts, this is it,” she said.
The $27.95 billion budget deal would apply the state 7 percent sales tax to tickets for theater, dance and performing arts events, concerts, museums, historical sites, zoos and parks, according to Associated Press reports.
The agreement reached Friday still requires legislative approval. The deal came 80 days late as legislators haggled over how to overcome a multimillion-dollar deficit.
“There are no winners and losers in this,” Gov. Ed Rendell said during a press conference Friday. “I know it’s hard for the people of Pennsylvania to accept the fact that they are the winner, but they are.”
The tax would not apply to tickets for sporting events or movies.
“It’s totally outrageous,” said Jesse Cline, artistic director of the Media Theatre for the Performing Arts.
“I don’t understand the difference or why they’re putting less value on performing arts, which are necessary for the quality of life that we all want to have.
“For politicians to put a tax on something like theater, which is both educational and shows us who we are in society, and somehow feel that it’s less valuable than a movie or sporting event is beyond me.”
Reed also expressed concern over the exemption for sports and movies.
“It’s not that it’s an entertainment tax. It’s very strange. Some assume they’re doing this so they can now bring back the idea of not funding any of the arts,” said Reed.
She pointed out that many cultural spots, like Hedgerow Theatre, are not-for-profit since they are considered a public service.
“This is the beginning of taxing those cultural organizations considered important for people’s growth and the identity of our communities,” said Reed.
“It’s also questioning a long practice that if we see arts as something so important to the community, then why are we taxing that which we already said for years shouldn’t be taxed?”
Cline predicted that tacking on the sales tax to tickets would keep patrons away.
“That could put coming to theater out of reach for some people,” he said.
“Already, we survived last year’s economic ups and downs, mostly downs,” said Reed. “Especially when theater is sometimes viewed as luxury and people need to buy food, they wonder, ‘Should I be doing this?’
“The problem is arts, all the arts, help define us. The sad thing is so much of the arts help people at a time of woe come in union toward something special.”
She said the tax could create a ripple effect by causing people to skip dining at a nearby restaurant or visiting local stores after a performance.
“If people stay away, they will also stay away from the restaurants and stores they frequent when they see a show or a dance or any cultural offering. The fact is it gets them out of the house,” said Reed.
