PROVIDENCE – Would
A fresh $2 tax on tickets
Prevent anyone from visiting the Providence Performing Arts Center?
Would it be more significant for a parent with two or three children planning to attend the Ice Capades, the P Bruins, or another game at the present-day venue?
Amica Mutual Pavilion
— in addition to a suggested new parking levy?
When do potential visitors decide not to go to the Capital City?
On this issue,
Mayor Brett Smiley
The Providence City Council members have differing opinions.
However, those managing the city’s prominent attractions concur that any additional admission taxes won’t harm their businesses, and conversely, they believe such measures would not significantly aid the city financially either. In fact, they think these could end up causing much greater damage to the city overall compared to the potential benefits from extra income.
The divide:
As everyone is aware…
Providence faces some financial challenges.
Currently, we aim to provide … the City Council as much flexibility as possible,” Representative Rebecca Kislak, who sponsored the main ticket tax bill, stated during a May 29 hearing with the House Finance Committee.
Echoing the theme,
Providence’s City Council Head, Rachel Miller
informed the legislators: “It is just one type of tool among many. Our projections indicate that it could generate approximately $3 million, significantly easing the strain on property taxes.”
And, ‘I believe this is just a small additional fee, correct? For instance, if someone buys a $50 ticket, they would only pay an extra $2. In my opinion, this wouldn’t deter anyone from participating in the fantastic artistic community we cherish here in our city.’
However, when questioned about the stance of the mayor, a spokesperson for Smiley named Josh Estrella stated to The Journal: “We value the effort of the legislation’s sponsors in investigating fresh approaches to broaden the city’s income streams, thereby reducing our dependency on just property taxes.”
We have been informed by community members, stakeholders, artists, and local vendors that this strategy might result in considerable unforeseen adverse effects on our artistic, cultural, sporting, and entertainment sectors.
Estrella stated that Smiley is now “focusing on and giving priority to” this.
proposed new parking tax
Regarding visitors who use services within our city without directly affecting our sports and entertainment venues.
That legislation –
enabling the municipality to impose an additional charge of up to 7% on parking fees
— is scheduled for a complete Senate vote on Tuesday, June 3rd.
The suggested additional taxes are all part of the
financially strained municipality’s attempt to generate additional income
to pay the
$15 million it owes to the city’s educational authority
.
To achieve a balanced budget, Providence is now appealing to the General Assembly.
a one-time exemption
From a state legislation that stops municipalities from raising their tax levy by over 4 percent annually.
Legislation that would allow the city to exceed that cap,
H6162
, was approved by the House of Representatives on a
56-17 vote
On May 27, it hasn’t received a vote in the state Senate yet.
Who is against the ticket tax?
The suggested additional ticket levy for locations hosting 800 or more seats garnered significant backlash from:
The
The Rhode Island Philharmonic Orchestra and Music School
, the
Rhode Island Convention Center
, the Amica Mutual Pavilion, the
Providence Performing Arts Center
, the
Providence Warwick Convention & Visitors Bureau
,
Lupo’s Heartbreak Hotel
, the
Providence College Friars
, the
Providence Bruins
and, with the opportunity potentially open to other cities, the
Newport County Preservation Society
.
The president and CEO of PPAC, Lynn Singleton, encapsulated their stance by stating: “No other state within New England levies a tax on ticket sales for venues of this scale.”
Given the intensely competitive nature of the market, this tax would effectively serve as a tariff on Rhode Island. This could encourage promoters and event organizers to opt for locations in neighboring Connecticut and Massachusetts instead, areas where we face significant challenges when trying to attract events due to stronger competition.
He cautioned the lawmakers saying, “Such a loss wouldn’t just decrease the quantity of events held at PPAC and similar nearby locations; it would also result in significant financial losses for local hotels, restaurants, and small enterprises. Additionally, with reduced performances, employees, subcontractors, and suppliers who depend on these occasions for income will face decreased job opportunities.”
In conclusion, he stated: “This suggested tax endangers more than just the entertainment sector; it also puts at risk the larger regional economy that depends on live events.”
Places such as PPAC, The VETS, and Trinity Rep… not only present outstanding performances,” stated ex-Providence Mayor Joseph Paolino. “They also book hotels, maintain restaurant traffic, and sustain the liveliness of our city.
At the
downtown restaurant he owns
Paolino stated, “It’s evident: Whenever there’s a significant event in town, we notice an increase in our reservations and customers filling up our restaurant. Such taxes could deter people from attending these events, thereby reducing this kind of business activity, which ultimately harms smaller enterprises relying on such traffic.”
The bill was put on hold for additional examination.
The article initially appeared in The Providence Journal.
Could a $2 tax on tickets have a positive or negative impact on Providence’s entertainment venues? Opinions vary.
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