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Council OKs tax hikes on tickets, car rentals

 IBJ Staff
January 28, 2013
Keywords
Arts & Entertainment, etc., City budget, City-County Council, Government, Government & Economic Development, Local Government, Tourism & Hospitality
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The Indianapolis City-County Council on Monday night approved tax hikes to admissions to downtown events and on rental cars.

The admissions tax, which would rise from 6 percent to 10 percent March 1 if approved by Mayor Greg Ballard, is levied on events at Lucas Oil Stadium, Bankers Life Fieldhouse, Victory Field and the Indiana Convention Center. The tax doesn't apply to not-for-profit events.

The county tax on rental cars would rise from 4 percent to 6 percent. Combined with state rental and sales taxes, the total tax on rental cars would be 17 percent.

The council approved both hikes by a vote of 16-12.

“Tonight, in a bipartisan fashion, members of the City-County Council made difficult but necessary votes to strengthen the fiscal position of our city," Ballard said in a prepared statement. "I want to praise the leadership of both parties for reaching a long-term budget deal that cuts spending and provides the necessary revenue to maintain the City’s vital amenities and services.”  

The ticket tax hike was opposed by Indianapolis Colts executives, who say the higher ticket prices could turn off fans and lead to possible TV blackouts of Colts home games.

The car-rental industry also opposed a tax increase, arguing that the tax affects local residents as much as out-of-towners.

That tax hikes are projected to generate $6.7 million for the city’s general fund this year. In the future, most of the money will flow to the Capital Improvement Board, which operates the sports venues and Indiana Convention Center.

CIB officials have said they need the extra revenue to cover future operating expenses, including building maintenance and upgrades, though the CIB hasn’t laid out specific plans.

The money that flows to city coffers will reduce a $47 million structural deficit.
 

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  • Missing the Point
    JerryJanuary 30, 2013 5:49 AM
    Joe and Chris, you are missing the point. These tax increases were never needed in the first place. 75% of the money is simply going to the CIB which is flush with cash and constantly giving away our money to pro sports franchises. The reason for the tax increases - we are going to build a downtown soccer stadium with our tax dollars, and use public money to run the place while a big contributor of the Mayor (who was also given the Broad Ripple Parking Garage built with our tax dollars) reaps all the profits. Your notion that you can simply avoid the tax by not going to events or renting a car is nonsensical. A lot of lower middle class people in this city have to rent cars for business or personal use. They are now going to be hit with 17% tax on those cars all so the CIB can give away more of our tax dollars to wealthy owners of pro teams. Also, many families like to take their children to events at CIB run facilities. They all pay higher taxes. Trying to say well if you just look at one car rental or one ticket and say it's not too bad ignores the cumulative effect of taxes. People make other choices when the good or service being utilized with every increase in taxes. I now am no longer going to rent cars in Marion County. By going to a Hamilton County I can avoid not just the most recent car rental tax but the entire car rental tax Indy has been imposing. The bottom line is these taxes did not have to be raised. They were raised because our council is filled with irresponsible individuals who love giving our tax dollars to the CIB so they can get free tickets to games and other events. (Of course councilors and members of the CIB do not pay taxes on their tickets...that's only for the "little people.") They do not care about the cost to working class individuals.
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  • @ Chris
    DaveJanuary 29, 2013 11:15 PM
    It's not the marginal tax increase, it's the total taxes that should be considered. Many economists say the average American pays north of 50% in taxes once everything is considered. So it's not the $.90 increase, it's the $.90 times a thousand that gets people upset.
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  • The Ticket Tax is 10%
    ChrisJanuary 29, 2013 9:05 PM
    Edward, if the ticket costs $9, let's just say without tax, then with total new tax, it now costs $9.90, meaning the tax is 90 cents. If you cannot afford 90 more cents, than you are desperately poor and you should not be going out to baseball games in the first place. Also, unlike an income tax, whether you pay the tax is totally within your control. If you don't want to pay the extra 90 cents, then do not go to a baseball game--it's that simple. Whether raising the tax was a good idea or not is an issue for debate, but let's not pretend the tax hike is somehow an onerous amount for anyone.
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  • The Base Amount Matters
    ChrisJanuary 29, 2013 9:00 PM
    Michael, go to New York (since you must have never been before). You will find even "cheap" hotels routinely go for over $300 a night. Restaurants are also far more expensive than Indianapolis. You cannot just look at the tax percentage (the rate), you have to look at the actual base amount taxed. Regardless of the tax rate, Indianapolis is far cheaper to both visit and live in than New York.
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  • Rich Folks
    EdwardJanuary 29, 2013 2:21 PM
    You can get an adult Indians ticket for only $9 and bring your own food and beverage. It's certainly not just the "Rich" that attend these games. I also I read in an earlier article that the Indians are not going to increase the price of what they charge fans for 2013 so the team is essentially paying the tax for their fans, at least this year.
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    • event/car tax hikes
      michaelJanuary 29, 2013 1:36 PM
      this is very short sighted on the council's part. but if they want to play fair, then charge the comped ticket users the fee. people aren't stupid, local folks will go to hamilton county to rent cars. visitors will tire of high tax for food, high tax for lodging; high tax for rental car; high tax for food. It will be new yorkish in fashion...hell might as well go to new york.
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      • DRT.....
        JoeJanuary 29, 2013 1:33 PM
        This isn't really a tax for tax's sake. IT is a specific and localized service charge or fee. If you don't want to pay it, don't go to a concert or rent a car....it is really that simple. People are already paying $50-70-100 for tickets to this crap. If that is your priority, then you are rich. My point about reversing the increase is the simply idea of diminishing returns. Theoretically, the price will get high enough so that enough people stop buying them and thus the added revenue begins to decline. It is clear that there is still plenty of room until that theoretical maximum.
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        • Rich folks?
          DRTJanuary 29, 2013 9:20 AM
          Yeah, Joe, only rich people attend Colts games, only rich people attend monster truck rallys, only rich people attend baseball games at Victory field, only rich people attend rock concerts. Oh, and I'm sure the politicians will reduce the tax with the same zeal as they levied the increase. There's nothing more permanent than a temporary tax increase.
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          • Liars
            GopJanuary 29, 2013 9:10 AM
            Typical GOP - campaign on no new taxes, then tax everything you cant sell to foreigners. Indiana needs to wake up. They prey on the naive
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          • Relax.....
            JoeJanuary 29, 2013 8:57 AM
            Calm down everybody. The prices for events are already quite high and reserved for hgiher incomes. If you can't/don't want to pay the prices, don't. If this turns out to be a substantial burdon on events, we can always reduce the tax.........just relax for a bit.
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          • to the public
            jamesJanuary 28, 2013 11:35 PM
            i recommend not attending any functions downtown and attend a bar&restuarant where you may watch free with eats
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          • Ballard
            JedJanuary 28, 2013 9:56 PM
            Mayor Ballard has made it his goal to raise every tax and fee collected by local government during his tenure. He's closing in on completing this task. I can't believe this is the same person I worked for in 2007, the man who promised to roll back taxes and end country club politics. I am so sorry for helping get him elected. Now we get to look forward to a publicly funded downtown soccer stadium that will be paid for with these tax increases.
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            1. liek the rest of America

            2. These quaint,obsessed musings by the stalkers are certainly entertaining, but I'm trying to figure out what, if anything, all the yelping below has to do with Zak Brown.

            3. It's evident that Moffett was pushing the right buttons and corporate America is now trying to squash him. He just wanted to withdraw the free pilot services provided to the company by the pilots to try and put some pressure on a company that has not been interested in negotiating a contract in over 5 years. The company does not provide a contract because not having one has saved them a bundle of money. Shame on any Republic pilots not standing behind their union leader just because things are getting tough, can you not see such strategic moves by the company as putting the last union president in a corporate position and into THEIR pocket. Do you really believe the last union president is so appalled at the attempts by Moffett, do you not remember his oppositions to the company? We stood behind him. It has been proven over and over again for thousands of years without fail, a man cannot serve two masters. Anyone that believes people vote contrary to their paycheck and livelihood deserve to be taken advantage of, the recent statements by the former union president are laughable as he denounces the current union president from his new corporate position. Have you ever seen a drafted sports player score points for his previous team, it cannot be done, he is not on the pilots side anymore, he gets his money a different way now than you and I do, and he should not be allowed to remain on the seniority list. A drafted player brings strength, credibility, tactical knowledge, and a strategic advantage to his NEW team, he would not be drafted or paid were it otherwise. We are all forced to choose only one side to play for and support, not doing so has many references in life such as insider trading and shaving points, all illegal for good reason. This basic fact is why corporate moguls, scientist, and engineers all sign non-discloser agreements and non-compete clauses, as protection in case they are lured into switching sides as our former union president has done. No NFL coach ever drafted a player so that both teams could benefit and better understand each other, they are recruited to win the game against that former team, period. Likewise the company does not recruit the former union president by accident or mutual understanding, its strategy. Don't confuse playing the game with good sportsman-like conduct in support of common business and prosperity goals, with the requirement to only play for one side. Good men we all love and favor fall subject to this manipulation, often without their knowledge, and it is not a betrayal of their friendship to oppose them when they switch sides. If we did not love and trust them, they would not have been chosen and lured to the other side in the first place. The deception by the drafted player is not made at a conscious level, it's just human nature and it's all about money and power which corrupts our ability to be objective and loyal to two masters. This is why our court system created the defense attorney, and why our military created counter intelligence. Its strategy and its propaganda, and it works, and that's why the "powers to be" manipulate the chess pieces by sometimes changing their colors. Some players know they are being manipulated when their color is changed, but it brings them more money and power so they do not care. The rest have good intentions but do not even realize they are being manipulated. This tactic is also known by another name, Divide and Conquer. In battle sending an imperfect message with an imperfect team is obviously not ideal, but it's still being sent by YOUR team, your union leader, a leader that has common goals and common rewards with you, they are the best, because we have elected them to do a job for us. If you are not backing Moffett but believing the spin by those that have recently switched sides, you are taking food out of your own mouth. Showing unity and backing an imperfect situation still results in taking just as much ground, it's about unity and bargaining power. It's not necessary to wait around for that perfect attack because it will never come, the company will spin and attempt to destroy anyone that gets in their way. Ultimately it's not about any specific attack anyway, ASAP or whatever it makes no difference, it is and always has been only about power. If this company cared about safety it would not build pairings with 8 hour overnights, come on, are you that naive? Besides, do you really think Hoffa cares, no, he got a call from corporate America and was squeezed into denouncing Moffett. If he didn't they would spin the safety card against him and the Teamsters National with implication for truckers, future contracts, insurance rates etc...saying something like the Teamsters use safety as a bargaining chip, blah blah blah... Do you really think any pilot is going to do something unsafe for the contract, absolutely not, the only ones threatening safety here is the company with reduced rest, fatigue, and poverty. Do you not find it odd that Hoffa and the Teamsters are opposing a Teamster president publicly? Would the Teamsters National not normally support and work with one of their own? Why did they not sit down and help him strategize, correct any mistakes, and charge ahead? Would the Teamsters National not normally support and leverage a contract for all those pilots that have been paying Teamster dues, isn't that why we have all been paying Teamster dues in the first place? I sure haven't been paying dues so that the Teamsters National could come along and write this kind of an article undercutting our union leader and our unity. Whose side is the Teamsters National really on, it's obviously not the Republic pilots side.

            4. No matter what Moffatt does the company is going to spin it like he is the terrorist and brainwash people like you into believing it, wake up, back your players that are trying to change things for you and your livelihood. Where has Hoffa been for the last 6 years, except collecting our dues. Seriously, do you really think an FO going for upgrade, signed off by a checkairman ready for the upgrade, who then fails, is not even capable of returning as a First Officer.

            5. whoa!

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