The Pennsylvania House of Representatives approved Bill no. 1531 by a vote of 103-98. The bill replaces proposed taxes on arts, culture, and small games of chance with levies on smokeless tobacco, cigars, and natural-gas drillers. The budget now moves back to the Senate, where leadership has vowed to fight it.
Arts and cultural groups in Philadelphia made their voices heard with letters, phone calls, emails and protests against having the sales tax placed on tickets to their events. With so many arts and culture groups struggling in this economy, they cited that the additional tax would severely impede audience attendance and participation.
To make up for the loss of revenue caused by dumping those two taxes, House Democrats endorsed a proposed severance tax on natural gas pumped from underground areas of Marcellus shale throughout the state. Senate Republicans are staunchly opposed to that tax, and it almost certainly will be a major stumbling block in future budget talks. The state budget for 2009-10 is already three months late, and no one is predicting how much longer it could take to get the House and Senate to agree on one proposal.
In another move, House Democrats voted to impose a tax on cigars and smokeless tobacco. Most other states already impose such a tax, but legislators here have been reluctant to take that step as well. House Democrats also offered up a proposed increased tax on revenue from table games at casinos. Instead of a 12 percent or 18 percent tax, as has been discussed, the new tax rate would be a hefty 34 percent on table games. Also, instead of a one-time licensing fee of $10 million, casinos would have to pay a $20 million fee for table games. Look for Casino officials to oppose the higher rates as the bill moves to the Senate.
For now the tax on arts and culture appears to have been defeated, but the victory is tenuous at best as the bill moves to the Senate floor. It will be even more important than ever for Arts & Culture organizations across the state to keep up the pressure on their representatives to prevent another move to “sneak” in new taxes on institutions so vital to the life and people of the Commonwealth.
To contact your State Senator, the Greater Philadelphia Cultural Alliance has provided a handy legislator lookup tool on their web site at http://www.philaculture.org/action/legislator
Please take a moment and make the call!
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