Venues – fewer than 3,200 seats – after July 1, +8% tax

January 6, 2010 · Filed Under Blog, Industry

The price of the HST may be higher ticket prices for audiences – and a major hit in revenues for already cash-strapped companies

James Bradshaw, Globe and Mail Arts

Ontario’s arts community is bracing itself for tough times – with some companies predicting a potential revenue loss of hundreds of thousands of dollars – all because of the province’s forthcoming HST.

The new 13 per cent harmonized sales tax, scheduled to start July 1, will mean the end of an exemption through which performing arts companies with fewer than 3,200 seats have avoided charging audiences 8 per cent provincial sales tax (PST). Not only a benefit ticket buyers have become accustomed to, it’s a cost many companies operating on tight budgets can’t afford to absorb.

Discussions with the province are ongoing, but unless the government agrees to concessions to offset this HST effect, affected companies will be forced to boost ticket prices by 8 per cent across the board – which could also hamper other, planned, increases in ticket revenues for years to come.

Full article and reader comments available in the arts section of the Globe and Mail: Venues – fewer than 3,200 seats – after July 1, +8% tax

Tags: Industry, policy