A tale of two cities
Tuesday, July 15th, 2008
Two Ohio cities have differing ideas on the proper taxation of entertainment admissions. In Youngstown, the Vindicator reports that “city council on Wednesday will consider reducing the admission tax charged on tickets to events at the [Chevrolet] center from 9.5 percent to 5.5 percent.” This is good news for event organizers, attendees, and perhaps even city government. Youngstown deputy finance director Kyle Miasek correctly notes that attendance will increase due to the lower cost of admission. The Vindicator forgot to take this fact into account in its analysis of the financial effects this measure will have, however:
The 9.5 percent tax generated about $82,000 for the city between February and May, he said. With a 5.5 percent tax during that same time period, the city’s profit would have been about $47,500.



