Unions, Tourism, Arts and Sports Leaders Unite in Opposition to Proposed Ticket Tax

Unions, Tourism, Arts and Sports Leaders Unite in Opposition to Proposed Ticket Tax

The proposed tax on “tickets” is drawing a growing list of opponents, including unions, tourism, sports, and arts leaders.

As GoLocal unveiled on Tuesday, enabling legislation proposed by the Providence City Council and sponsored by State Representative Rebecca Kislak, would place a tax on any event held in a venue that has a capacity of 800.

The legislation has united a wide variety of interest groups in opposition to the legislation which is schedule for a hearing on Thursday before the House Finance Committee.

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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.

While the bill was submitted at the request of the Providence City Council, if the legislation is adopted, any city or town could adopt the tax for its community.

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

One of the constant refrains by opponents is that the tax would tell event promoters that Rhode Island is unfriendly to events and tours.

Kristen Adamo, the CEO of the Providence Warwick Convention and Visitors Bureau, wrote in a letter to House Finance Chair Marvin Abney, “This bill’s implications could stretch far beyond leisure tourism – it also poses a threat to the booming sports industry in Rhode Island. Events booked by the Rhode Island Sports Commission, a division of the PWCVB, generated more than $44 million in direct spend in the last fiscal year alone. For example, the Providence/Warwick area benefited immensely from hosting the NCAA Division I Men’s Basketball Tournament in March, a highly sought-after bid that another city could easily win if additional taxes discourage ticket sales or cause the league to consider a more tax-friendly venue.”

 

Union Warning

Local IATSE 23, Stagehand Union, warns that the legislation is a job killer. Chris Vilardi, President of the Union writes in a letter to Abney.

 

 

 

The executive director of the Rhode Island Philharmonic, David Beauchesn,e warns that this legislation will not only adversely impact his organization, but also a wide range of small businesses.

"No other state in our region imposes such a tax on ticket sales, and with good reason: this tax would deter audience members from purchasing tickets and touring artists from using venues like The VETS, PPAC and the AMP. The combined effect would be less revenue for nonprofits like the Philharmonic, Trinity Rep and Ballet RI, fewer bookings for venues, and fewer customers for hotels, restaurants and small businesses that serve our artists, staff and audiences. All would lose revenue. Undoubtedly, many would go out of business," he wrote.