For the first time in 70 years, Theatre Baton Rouge patrons will have to pay sales tax on tickets and season subscriptions, thanks to a temporary 1-cent state sales tax increase slated to go into effect on Friday.
Theatre Baton Rouge, which has enjoyed a sales tax exemption, says it will have to charge would-be patrons and devout supporters a 5% sales tax on all tickets sold from April 1 through June 30, according to a notice posted to the theatre’s website and signed by Jenny Ballard, the theatre’s artistic director, and Lance Parker, president of the theatre’s board of directors.
Theatre Baton Rouge also says its exemption from collecting sales taxes has been suspended until July 1, 2018, meaning after June 30 the nonprofit will charge sales taxes at a lower level of 3%.
“We are not happy about this, but for the time being, it’s the new normal,” an updated version of the notice reads. “If you are also feeling frustrated about this decision, please contact your local state representative or state senator.”
In the meantime, the theatre has encouraged would-be patrons and supporters to purchase their season subscriptions before Friday to avoid paying the extra sales tax.
Via email, Ballard says Theatre Baton Rouge has seen a rush in subscriptions this week—80 sold since Monday—after notifying patrons prior to the Easter holiday about the impending sales tax increase on tickets.
The average rate of a seasonal subscription is $110, Ballard says. Tickets for plays are $25, but students pay $20, while tickets for musicals cost $29 for regular patrons and $20 for students.
“So far, our patrons have been very understanding,” she wrote. “I certainly hope that nonprofits all over the greater Baton Rouge area are not negatively affected by this tax. It’s the new reality for the time being.”
During the last minutes of a 25-day special session, the Louisiana Legislature approved a 1-cent sales tax increase and eliminated dozens of sales tax exemptions. Both moves are temporary to address massive budget gaps in this and next year’s budgets. John Bel Edwards signed bills into law on March 14, authorizing the changes.
The sales tax increase is estimated to generate $214 million for the remainder of this fiscal year and $880 million during each of the next two fiscal years before it expires June 30, 2018. The removal of sales tax exemptions is estimated to bring in $66.7 million this fiscal year and $272 million for the two year before expiring.
Read the detailed notice from Theatre Baton Rouge.
—Alexandria Burris
