Racing Tickets: Taxed?

In 2007, the Governor and Legislature tried to impose a new tax on tickets to sporting events, concerts and movies in Michigan. They backed off after you — the fans — told them Stop the Ticket Tax.

Now the Governor has again proposed a 5.5 percent tax on all tickets to professional, college and minor league sporting events, and all entertainment events, which will raise the cost of tickets by almost $100 million a year.

This includes your local race track.

All four of Detroit's major professional teams, the Tigers, Red Wings, Lions and Pistons, are part of the coalition against the proposal.

"This tax is not on the sports teams – it is on you – the fans," the Red Wings said in a recent email sent out to season ticket holders. "And all of us at the Red Wing's organization believe it is wrong to target the working families."

Michigan ticket broker Joel Schwartz, owner of Big Time Worldwide vehemently opposes the plan because he believes it potentially would have a devastating effect on ticket sales because many fans would stop buying tickets.

"I don't think they're fully aware of the ramifications of this," Schwartz told TicketNews. "I've told the politicians that besides people not buying tickets, this could force ticket brokers out of the state, which would further hurt revenues."

Schwartz said he would consider moving his business to Ohio if the tax is enacted, because out of state brokers would likely not be subject to collecting it. Brokers in the City of Chicago are faced with a similar disadvantage because of the amusement tax levied by the government.

Michigan attorney Randy Smith, who also owns the ticket resale Web site AmericasTopTickets.com, agreed with Schwartz that ticket sales will decrease, especially in this tough economy.

"Like anything that raises a cost on something, we'll see people who won't pay it by not buying tickets," Smith said. "It gives people an excuse not to buy tickets, which defeats the whole purpose."

If you do not want to see ticket prices increased make your voice heard.

Click on the Title or Banner to join: No Ticket Tax.com