City Proposes Elimination of Non-Profit Ticket Tax Exemption

This week the City Council will hear the first reading of several ordinances designed to make revenue adjustments to help address our current budget situation. One of these ordinances in particular has the attention of many of Tacoma’s non-profit organizations. Ordinance 28044 would amend the municipal code to remove the exemption provided to those attending events sponsored by non-profit organizations and require non-profit organizations with annual admission revenues over $250,000 to collect a five percent tax on all admission charges exceeding $250,000.

The first reading is tomorrow. The final reading and the vote are scheduled for next Tuesday. Non-profits don’t have a lot of spare change lying around. Fundraising is tough, especially in tough economic times, even without a 5% increase in admissions. The City has a $31,000,000 budget gap to bridge. There are no bad guys and no easy answers here. Is 5% an onerous burden for our arts organizations?

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