Pennsylvania Budget and Policy Center: Sales Taxation of Admission to Cultural Events Across the U.S.
ITEP Work in ActionThe 2009-10 Pennsylvania state budget agreement announced in principle by the lawmakers includes a proposal to eliminate the sales tax exemption currently in place for admissions to cultural events (live theater, concerts, opera, ballet, museums and other similar activities).1 Removing this exemption is projected to raise approximately $100 million per year in new tax revenue. As the final agreement is being codified, concerns have surfaced regarding this tax change – in terms of the effect of the tax on nonprofit groups and the continued exclusion of other amusements like admission to motion pictures or sporting events from sales tax.