Photo submitted by Abbi Peters
2009-2010 Pennsylvania Partners in the Arts Project Stream Grant recipients along with representatives of county, state and federal government met at Hamlin Memorial Library in Smethport on Wednesday Sept. 23. Over $22,000 was awarded to 16 arts projects occurring in Elk, Forest, McKean and Jefferson Counties. According to Peters, this funding will be eliminated if state art funding is removed from the budget.

By Greg Reedy
Sports Editor

The latest turn to the state budget drama in Harrisburg could see consumers paying more for professional entertainment such as concerts.
Last week, legislators in Harrisburg enacted a proposal to lift the sales tax exemption on theater, dance, music and performing arts admissions as well as admissions to museums, historical sites and zoos. The proposal was done to try and generate recurring revenue into the state budget. Those two groups were the only ones targeted in the proposal, and although nothing has been made permanent as of yet, those in the arts community are concerned.
Last Wednesday, a group of representatives from state arts and cultural organizations went to Harrisburg to speak with legislators and Governor Ed Rendell. Among those were April Williamson from the Greater Philadelphia Cultural Alliance and Abbi Peters of ECCOTA. Peters said Williamson first informed her of the proposal.
"I received a call from April Williamson, she informed me of the removal of the sales tax exemption and actually had arranged for advocates from both Philadelphia and Pittsburgh to meet with legislators and the governor last Wednesday," Peters said. "We had a full day of meetings arranged and I was asked if I would join them as a voice for rural arts organizations."
Peters thought the meeting went well.
"The governor was very receptive. He does support the arts. He is not in favor of the lift of the sales tax exemption," Peters said. "He is also in favor of passing a budget and one of his stipulations has been they need to present to him a budget that shows recurring revenue. As proposed, this will provide recurring revenue.
"Other legislators listened to what we have to say but everyone is very hesitant right now as to what can be done and what will keep this budget process moving, but will yield results which everyone can work with," Peters said. "It isn't that arts organizations are against the need for taxing, it is obvious that the state needs revenue but it's just to single out these certain types of events and cultural institutions puts a burden on them. There's a broader tax base than people are willing to recognize."
A decision to take arts admissions off the state list was an unexpected one, according to Peters.
"To me, it seemed to come out of left field," Peters said. "A lot of people felt blindsided by it. I see a backhanded compliment out of this. Before, we were just fighting to be considered in the budget. Now we're considered so relevant that we're filling a hole of a revenue source. It's just been interesting to see how everything is playing out. In the end, hopefully the right decisions are made to make a responsible budget come through."
Peters explained what a possible lifting of the sales tax exemption list would mean.
"It would increase ticket prices for professional performances," Peters said. "All of the pieces in the gallery are already subject to sales tax. This sales tax exemption would affect performance. When we had "Riders In The Sky" perform last October, the ticket prices were $25. They would now be $25 plus the sales tax.
"It will also affect when people have to drive out of the area to see performances, concerts or theatrical performances, they would have a sales tax," Peters said. "It will increase the cost to make arts available to all of the public. It draws a line in the sand and says arts events are considered more for the elite because the elite can handle the sales tax. It's really the theory behind what this lift of a sales tax is implying. It will really hurt smaller non-profit organizations putting on programs and events in which they are trying to keep their ticket price lower and participate."
In a press release issued last week by the Greater Philadelphia Cultural Alliance, a tax on tickets at Pennsylvania non-profit cultural organizations would yield just $12.96 million, only 13 percent of what legislators are hoping for with this proposal.
"We presented the governor and legislative leaders with indisputable facts about the arts and culture sector and the risks this new tax would create for its future viability," Peters said in the press release. "We also worked to dispel myths about who this tax would impact. The fact is there are 4,900 non-profit arts and cultural organizations in Pennsylvania and 86 percent of these organizations are small, community-based and volunteer-driven with annual operating budgets of less than $250,000.  
Peters said details about the possible proposal were still being ironed out.
"It's not our intention to slow up this process any more than it already is by asking that this sales tax exemption not be put into effect as recurring revenue," Peters said. "It's that fine line of finding the balance so that we do get a budget in a timely manner but it's a responsible budget that actually makes sense for everyone in the long run."
Peters said legislators have been hearing from constituents.
"Constituents are calling in and talking to legislators," Peters said. "Leaders within arts organizations are talking to legislators. The process, it's still in the movement that people are trying to get worked into the final deal so if this sales tax exemption is permanently removed, arts organizations are trying to be written into the state budget with a ground floor of funding. So if all these events are to be taxed, we'd like to see a certain amount of funding come back to those organizations each year instead of constantly being on the chopping block."  
Peters feels the arts were singled out in the group which is on the sales tax exemption list. Some of those on the list include camps, dry-cleaning, transportation and sporting events.
"Some people immediately think the priorities are off skew," Peters said. "Not including sporting events and movies. I did find out that one reason they can't lift the exemption off sporting events is because six of the professional sports teams that lease stadium space in Pittsburgh and Philadelphia have it written directly into their contract that if any further taxes are imposed upon them, then it goes unto the burden of the local municipality to make up that tax."
Peters feel there is reaction to support this issue from people she has spoken to.
"Other people think that's it's perfect, that it will only affect the people that are buying $250 upper-deck tickets anyway to see a concert," Peters said.
Peters said she wanted to clear up any misconception out there that artists are trying to keep on the sales tax exemption list.
"Some people are saying that 'artists are whining because they are going to be taxed, all they ever want is a free ride,'" Peters said. "What I would really like to see come out of this is a clearing of the misconception that artists are for free rides and that they don't want to be taxed. It's actually on the contrary. We want to keep arts available to the public and accessible to all classes and all pocketbook sizes. It's situations like this that make that difficult."