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Taxing Pennsylvania’s arts and culture

September 22, 2009

Museums tend to be nonprofits. As such, they don't distribute any surplus funds to owners or shareholders, but rather use the money to help pursue the organization's goals.

And by getting IRS approval for their nonprofit status, the groups are tax exempt.

Taxes, however, can be collected from their visitors. That's exactly what Pennsylvania lawmakers plan to do.

Rocky_statue

After a budget fight, the Keystone State's legislators reached an accord that would extend the state's 6 percent sales tax to arts and cultural institutions, including theaters and museums.

Movie houses and sporting events would not be taxed.

The extra money from ticket sales taxes would go into a special fund. Details are sparse, but there are reports that "some" of that fund would go back to the performance venues and museums.

That's not enough to mollify many arts and culture lovers.

In today's edition, the Philadelphia Inquirer said that "Filling Pennsylvania's budget gap with a new tax on the arts unfairly singles out a community that already is struggling."

In the City of Brotherly Love, the charge would be even higher. The same budget negotiations resulted in an upcoming increase in Philadelphia's sales tax; that means the tax rate for the city's cultural offerings will be 8 percent.

"It's not clear whether charging an extra $1.28 would deter the average patron from visiting the Philadelphia Museum of Art – probably not," said the Inquirer editorial. "But many arts organizations are teetering on the edge financially, after a sharp decline in private donations. For some, an increase in ticket prices could become the breaking point."

Even the reliably raucous Philadelphia sports fans appreciate more refined pursuits. The Inquirer said an informal poll of Eagles fans at Sunday's game revealed that most of those interviewed would pay an entertainment tax, and they also don't believe it's fair to single out the arts.

Good to see the football fanatics broaden their horizons. And personally, I'd pay added tax of much more than a few cents to see a Philly opera house filled with Eagles and Flyers fans.

Rocky statue outside Philadelphia Museum of Art photo by John Fischer

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It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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