The Columbus city council has revamped its ticket tax proposal, lowering the rate from 7% to 5% on all tickets over $10, and permitting only taxes on events at the Blue Jackets‘ Nationwide Arena to go toward arena renovations, with the rest going to arts organizations.
This is getting pretty close to an arguably fair deal, if the goal is to have entertainment venues pay for their own upgrade costs. As I’ve discussed here before, ticket tax money mostly ends up coming out of the pockets of the people selling the tickets, for the simple reason that venues are already selling tickets for as high as the market will bear; if the Blue Jackets decide that they can get away with charging $50 for a certain seat, they’re not suddenly going to be able to get away with $52.50 just because there’s a new 5% tax surcharge, so they’ll have to lower ticket face values (or at least refrain from raising them) to keep the new total price the same. (It’s a little more complicated than that since all entertainment venues in town will pay the same tax — it’s possible ticket buyers may end up having to pay a bit more on the economic principle of “nyah nyah, suck up higher ticket prices or stay home and watch TV,” while that $10 limit creates a rather large incentive for venues to charge $9.99 for tickets instead of $10.50 — but the basic principle still holds.)
This should help placate opponents who were upset that non-arena tickets were going to be taxed to pay for arena renovations; whether it placates the Blue Jackets owners, who previously came out against the earlier version of the tax, is another story. Though there’s nothing saying the Columbus city council has to come up with a tax that the team owners agree to, and the Blue Jackets’ lease that bailed the team owners out at public expense runs through 2039, so maybe they’ll just have to suck it up and accept a tax that will benefit their own arena, which isn’t actually all that onerous when you put it like that.