Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, May 24, 1995 TAG: 9505250005
SECTION: EDITORIALS PAGE: A-8 EDITION: METRO
SOURCE: J. TYLER PUGH
DATELINE: LENGTH: Medium
The commissioner of revenue was correct in enforcing the vendor tax that was already part of the city code. But clearly public interest served by the publicity and other revenue generated by the festival overrides the reason for the tax, since it serves as a deterrent to the success of the event. As members of City Council take necessary steps to solve this dilemma, they should consider other obvious areas in the code where tax revenue in the short term may have a serious detrimental effect on the community in the long term.
The city currently charges an admissions tax on any event held in the city where tickets are sold. That tax is reasonable for events such as rock concerts, traveling Broadway plays, automobile shows, flea markets or any other event where the sponsor operates for profit. However, this tax is applied to all admissions, regardless of the sponsors and their tax status. That means that organizations such as the Roanoke Symphony Orchestra, Opera Roanoke, Mill Mountain Theatre and many others must also pay an admissions tax on each ticket sold.
The admissions tax on tickets may seem like a small item, only a small portion of the ticket price. But the tax in the aggregate amounts to thousands of dollars. Ticket revenue has never been intended to cover the cost of local arts organizations' budgets. In fact, many of these organizations may operate at a deficit from time to time in order to bring their presentations before the public. Unlike the admissions tax on an out-of-town event conducted for profit, where the tax simply keeps some of the profits at home, an admissions tax on local-resident nonprofits is simply one more drain on already overextended budgets.
There is a far greater public interest here than the relatively small tax revenue generated by this tax on local nonprofit organizations. Roanoke and surrounding communities from the New River Valley to Lynchburg have enjoyed an extraordinary level of fine arts provided by nonprofit professional organizations such as the symphony and opera that reside here in the valley, and these organizations can survive only through public support. With the death of Marion Via, our community lost a major benefactor whose generosity helped create the wealth of artistic offerings we enjoy today. Without that support, many organizations may have to re-evaluate their future. Tragically, some may not survive at all.
These organizations, because of what they bring to our quality of life, deserve full support of local governments and all citizens throughout the region. This isn't simply a cultural consideration, but an economic consideration that affects everyone. As a community, we need to step back and look at what we have today. In the long run, it will be far easier to support and maintain what we have than to replace it after it's gone.
City Council should carefully evaluate the impact of the arts on our city, and consider the consequences of the loss of these enterprises on larger issues that generate income for the city. Council should consider ways to bring significant financial support to nonprofit arts organizations that reside in the city. Eliminating the admissions tax on their performances is certainly a good beginning.
J. Tyler Pugh, who is past president of the board for Opera Roanoke, is senior vice president and branch manager for Wheat First Butcher Singer in Roanoke.
by CNB