Rumors of ticket tax tick off ticket holders |
By ANDREW F. MUTAVDZIJA Capital News Service |
LANSING – The host of Michigan sports talk radio’s top-rated “The Huge Show” isn’t afraid to be FATT. In fact, he’s proud of it. Bill Simonson, along with Fans Against the Ticket Tax, a coalition opposing a possible new 6-percent state tax on tickets to concerts, movies and sporting events, celebrated “No Ticket Tax Day” with a live broadcast from the Capitol. “I have no political agenda,” Simonson said on his program as he warned legislators they wouldn’t be reelected if they vote in favor of the tax hike. He said he understands the state has a budget problem, but “don’t take it from the families trying to see a game.” As the Sept. 30 deadline to pass the state’s budget draws closer, lawmakers and the governor are considering ways to balance the budget. A new tax on services ranging from movie tickets to dry cleaning is one of the ideas put forth. The suggested “luxury tax” on tickets, as critics call it, would cover almost $1.3 billion of this year’s projected $1.8 billion budget deficit. Tom Shields, president of Lansing-based Marketing Resource Group and a lead organizer of the FATT coalition, said the tax idea emerged at the beginning of the year, and he said backers wanted to get it passed quickly, without public debate. However, there has been no such legislation introduced. When sports organizations caught wind of the proposal, there was immediate backlash, he said. The Pistons and Tigers sent e-mails to their ticket-holders informing them of the rumor and urging them to contact their legislators. Shields said the average household has 5 percent of its income available after paying bills to spend as discretionary funds. To tax that, said Shields, is not good tax policy. “State government already taxes our pay. They shouldn’t tax our play,” Shields said. Michigan would be one of the only states in the Midwest with a ticket tax, should it be enacted, said Shields. However, Meredith Helgerson, communication officer with the Department of Revenue in Wisconsin, said Wisconsin has taxed admission to sports events, concerts and movies since its 5-percent sales tax was created in 1962. Helgerson said Ohio, Illinois and Indiana don’t impose a state tax on such events, but they do allow municipalities to do so. So, she said, it seems Michigan may be the only state in the region that doesn’t tax such items. Lynn Andrews, information officer with the Minnesota Department of Revenue, said her state has a 6.5-percent sales tax, and certain cities, like Minneapolis and Bloomington, impose an additional 3-percent “entertainment tax” on live entertainment events. Rep. Chuck Moss, R-Birmingham, said he wondered when going to the movies became a luxury and said the tax would hit working people. “It’s another kick in the pants to ordinary citizens,” he said. Moss said the state can’t afford to fund pork-barrel wish-lists. Raising taxes to cover current operations is not the way to do business, he said. Todd Anderson, vice president for government relations for the Small Business Association of Michigan, said some officials want to impose a new tax on residents without trimming its own excess. “We’re very much opposed to that,” he said. Toby Allen, a political coordinator at Marketing Resource Group, said FATT’s main message is that a tax on tickets will make it harder for working families to spend time together. Allen said other organizations opposing the tax include the Red Wings, Lions, Lansing Lugnuts, West Michigan Whitecaps and Meadowbrook Music Festival. |
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© 2007, Capital News Service, Michigan State University School of Journalism |