COLUMBUS – After hearing from members of the public at a series of forums, the organization that oversees arts in Columbus has walked back some of its request for a “ticket tax” to fund the arts and support Nationwide Arena.
The Greater Columbus Arts Council has proposed a 7 percent tax on admissions and tickets to cultural and pro sports events in Columbus but announced on Sept. 17 that it has decided to exempt smaller organizations and venues as well as a host of community and charity activities.
“Our nonprofit arts and culture sector generate nearly half a billion in economic activity annually, support 15,000 jobs, and add immensely to our quality of life, and the arena adds significant economic impact on top of that,” said GCAC president and CEO Tom Katzenmeyer, who says arts in central Ohio are at a “tipping point.”
“If we don’t secure an additional $15 million annually, we are at risk of thwarting the significant economic impact of our arts and culture sector,” he said.
The proposal includes two key exemptions for performances or venues of 400 seats or less or which charge admission of less than $10. However, those organizations or events which want to receive GCAC funding will have to apply the fee.
The proposal calls for 70 percent of the proceeds from the fee would benefit cultural activities, grants for artists and capital improvements for arts facilities while the remaining 30 percent will be distributed to Nationwide Arena, which is part of the reason a grassroots organization has been vocal in its opposition to the tax.
“This is nothing more than another arena bailout,” said Michael Gonidakis, spokesman for Advocates for Responsible Taxation, in an interview on “Perspective” in August.
Gonidakis points out that the city’s hotel bed tax is already earmarked to support the arts and the arena has been supported by a loan, which was supposed to paid off with revenue from the Hollywood Casino Columbus. Although revenues did not meet expectations for several years, the organization overseeing the arena reportedly ended the fiscal year in June with a $100,000 surplus.
Katzenmeyer argues that Nationwide Arena is considered inferior to most similar venues because it has not seen any significant capital improvements in its 19-year history.
“With professional sports and performances at Nationwide Arena alone generating more than 35 percent of the annual estimated admissions revenue each year the arena will be a net contributor to the arts and cultural sector under this proposal,” said Katzenmeyer.
Currently, 64 Ohio cities have ticket fees, as do many cities across the country, Katzenmeyer said.
But, Gonidakis vows that, if Columbus city council approves the request, his group will begin a petition drive to place a referendum on the fee on the ballot.
“When any other group needs additional money…they have to ask the voters. Shouldn’t the arts have to ask the voters too?” he said.
City council will also host public hearings, beginning on October 11th in City Council Chambers, on the fee proposal.
Residents can share comments or take a survey.
The exemptions to the fee include free events, race and walk registrations; brewery, distillery and cultural tours and tastings; and charitable events solely benefiting a nonprofit organization.
Attractions offering memberships, season tickets or subscription series would apply the equivalent of a 7 percent fee on a single admission ticket only. Sports teams and performing arts groups would apply the fee for the total purchase or season or subscription tickets.