Tuesday, September 18, 2007

A Tax on Tickets? 

Filed As:  Budget and TaxEconomic principles

When I looked at my hotel bill this morning, I saw an interesting line: "arena tax." But why?

When I go on trips, I'm not surprised to see a state sales tax, a county sales tax, and even a city sales tax. But an arena tax? During my stay I was, at best, four miles from the arena for which I am paying tax.

I understand the logic, even if I don't agree with it: a city needs a convention center as an economic development tool, and rather than levy a new tax on residents (and voters!) stick it to the visitors--that is, to non-voters.

But how about visitors, like me, who make no use of the amenity? I made the trip to have some face-to-face meetings at a sandwich shop. The arena was the furthest thing from my mind.

On the other hand .... Perhaps I should have paid a tax had I, say, gone to a convention at the arena, or attended a basketball game there. (To be truthful, I have no idea WHAT happens there). Then it's a user fee. Not to say that government ought to be in the business of running entertainment or meeting spaces, but at least it would be a step up from the status quo.

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