Proposed “Ticket Tariff” May Kill Providence’s Culture, Warn Top Venue Leaders

Proposed “Ticket Tariff” May Kill Providence’s Culture, Warn Top Venue Leaders

The top leaders in the arts and culture community in Providence are warning that a last-minute bill sponsored by Representative Rebecca Kislak could be a devastating blow to the fragile industry. The bill also has much broader implications, hitting sports events and even high school games.

Kislak (D-District 4) and co-sponsors Representatives David Morales, Brandon Potter, Grace Diaz, Scott Slater, Edith Ajello, June Speakman, Ray Hull, and John Lombardi introduced the legislation late in the session.

With downtown Providence unstable — Providence Place Mall in receivership, the Superman Building vacant for more than a decade, and concerns about crime — opponents to the new tax warn it could be devastating.

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The proposed legislation puts a $2 per ticket tax on theater events, concerts, comedy, Providence College basketball games — any ticket for an event in a venue that holds 800 or more seats. 

Those attending even a La Salle football game or Classical basketball game if the gym holds 800 would be hit by the tax. Actual attendance is not a condition of the revenue-generating measure. 

The bill is not limited to Providence. It can be imposed in any community. The bill states, “The city or town council of any city or town is authorized to provide, by ordinance, for the imposition of a tax on the sale of a ticket for admission to a large venue, not inconsistent with this section.”

So the tax could ostensibly hit the Stadium Theatre, the new minor league soccer stadium in Pawtucket, and football games at the University of Rhode Island.

And beyond, the bill could hit ticketed fundraisers that are held at the Rhode Island Convention Center or Bally's Twin River.

“If authorized pursuant to the provisions of subsection (a) of this section, a tax of no more than two dollars ($2.00) shall be imposed upon the sale of a ticket for admission to a large venue. This tax shall be administered and collected by the Division of Taxation and shall be redistributed to the municipality where the large venue is located,” states the legislation.

 

Warnings Issues

One of the top operators of an entertainment venue in Providence is warning House Chairman Marvin Abney about the adverse impact of the legislation.

“No other state in New England imposes such a tax on ticket sales at venues of this size. In an already highly competitive market, this tax would act as a tariff on Rhode Island, further incentivizing promoters and event organizers to choose venues across the border in Connecticut and Massachusetts, states where we already struggle to compete for shows. This loss would not only reduce the number of events hosted at PPAC and other local venues but would also diminish the economic impact that these performances bring to our community,” writes Lynn Singleton, President & CEO of Providence Performing Arts Center

Singleton adds, “When shows bypass Rhode Island, it's not just venues like ours that suffer. Local hotels, restaurants, and small businesses lose critical revenue. Fewer shows mean fewer jobs for staff, contractors, and vendors who rely on these events for their livelihood. This proposed tax jeopardizes not just the entertainment industry, but the broader local economy that thrives on live performances.”

Concert venue operate Rich Lupo also warns that the bill would cripple the music industry.

“I have been in the concert business here in Rhode Island for 50 years. As owner of Lupo’s Heartbreak Hotel for 43 years and the Met for 32 years, I know what a struggle it is to get shows in the Providence area,” wrote Lupo in a letter to Abney.

“We are a secondary city in the booking world, and because of this we are commonly bypassed by touring acts. There are a finite number of available acts. Frequently, an act must decide where to play a single available date, among, say, Hartford, New Haven, Portland or Providence. It is difficult to get our share of such shows,” writes Lupo.

He adds, “I think this tax would be the straw that breaks the camel’s back. Agencies would likely give up on Providence completely. Beyond the math, I think this tax would draw the ire of the booking agents and the bands. I also think the concert goers would be angry at not only the venues, but angry at the city government as well. Even without this tax I fear we are in what are locally dying businesses. Such a tax would severely damage this difficult industry.”

 

Kislak Responds

Kislak said, "I’m looking forward to the hearing. We can always amend the bill."

"It’s a part of a revenue package for Providence, so the city has options in its budget. I also have a parking lot tax bill," said Kislak.

"The city needs to diversify its revenue. The bill is from the City Council," she added.