The City of Toledo is considering imposing an 8.00% tax on entertainment events in Toledo. Little is known about the specifics of the plan, but the city is offering this tax as a $1,000,000 line item of revenue to help close the City of Toledo's budget deficit.
Toledo Speedway realizes that the Mayor of Toledo and Toledo City Council face significant obstacles that need to be overcome in order to balance the City's budget. We also appreciate that they must explore all possible options; however, the entertainment and sports tax of 8% is not a viable solution. We have renamed this tax the "Family Ticket Tax" because 83% of families (households with children) will pay the tax.
1. What is the "Family Ticket Tax"?
Essentially, the City of Toledo is arbitrarily raising Toledo Speedway ticket prices without our approval, endorsement, or consent. Raising ticket prices by 8% in one of the deepest and longest recessions in decades contradicts our mission statement.
Although it is undefined as to what events would be taxed, almost all organizations that will be affected are non-profit organizations. The media has reported that several of the largest arts, culture and sports organizations could be directly affected, including: the Toledo Mud Hens, Toledo Walleye, Lucas County Arena, The Valentine Theatre, Stranahan Theatre, Toledo Symphony, Toledo Opera, Toledo Speedway, Toledo Zoo, Imagination Station, The University of Toledo, movie theatres, and even high school sports.
2. Who pays the Family Ticket Tax?
This tax will spare no one. According to Scarborough Research, Toledo Market (October 2008 - September 2009):
- 83% of families (households with children) will pay the Family Ticket Tax.
- 41% of senior citizens will pay the Family Ticket Tax
- 35% will be unemployed (students, retirees, the disabled, temporarily laid off, and Looking for work).
- 31% will be blue collar
- 34% will be white collar
3. How will the "Family Ticket Tax" affect ticket buyers and race teams at Toledo Speedway?
Due to the recession, Toledo Speedway has reduced grandstand admission prices and not increased payoffs to race teams.
Many assume that most ticket purchasers are corporations, who would stand to absorb the ticket tax better than a working-class family. This is not the case. Most of our race fans and race teams are hard working Toledoans who already pay a signifcant amount in City taxes and fees. Under these stringent economic conditions, neither the speedway nor the race teams can absorb any further reductions or cuts. Any increase in tax would have to be passed onto the ticket buyer.
4. What will the economic impact be for downtown Toledo and the greater Toledo region?
When researching construction for Fifth Third Field and the Lucas County Arena, the Lucas County Commissioners commissioned two studies. Specifically, the Lucas County Arena Action Plan stated that the annual economic output from 475,190 attendees at the Arena alone would be $42,059,000. These figures translate into an economic impact of $88.50 for each attendee/ticket buyer. Our 50 years of experience at Toledo Speedway tells us that if we are forced to increase ticket prices attendance will decrease. For instance, if attendance decreases by only 200 at each of the 24 scheduled race events in 2010 the resulting annual decrease in attendance would be nearly 5,000, resulting in a loss of $442,500 in economic impact. I think we would all agree that given the current state of the economy this would be far from a desirable effect on the City and surrounding area.
5. Have other cities enacted a tax?
- The state of Michigan does NOT have a similar tax. In fact, it was defeated twice.
- Efforts by the Mason City Council, Ohio to pass an admission tax for its area attractions failed at the council meeting on February 8.
- In other cities that have this tax, the revenue goes back to pay for the mortgage and capital repairs for the stadiums and arenas, not to the local government (Indianapolis, Cincinnati) and in the City of Cleveland's admissions tax, not-for-profit organizations are exempt.
6. How do I voice my opinion/concerns?
Click here to email all parties at once
Toledo City Council - (419) 245-1050
Phillip Copeland - phillip.copeland@toledo.oh.gov
Joe McNamara - joe.mcnamara@toledo.oh.gov
George Sarantou - george.sarantou@toledo.oh.gov
Adam Martinez - adam.martinez@toledo.oh.gov
Rob Ludeman - rob.ludeman@toledo.oh.gov
Wilma Brown - wilma.brown@toledo.oh.gov
D. Michael Collins - dmichael.collins@toledo.oh.gov
Mike Craig - mike.craig@toledo.oh.gov
Michael Ashford - michael.ashford@toledo.oh.gov
Tom Waniewski - tom.waniewski@toledo.oh.gov
Lindsay Webb - lindsay.webb@toledo.oh.gov
Steven Steel - Steven.Steel@toledo.oh.gov
Mayor's Office (419) 245-1001
Michael Bell - mayor.toledo@toledo.oh.gov
Steve Herwat - Steve.Herwat@toledo.oh.gov
Lucas County (419) 213-4500
Bridgette Kabot - bkabat@co.lucas.oh.us
John Zeitler - jzeitler@co.lucas.oh.us
