Nonprofits Oppose Admission Tax Plan

Groups Fear Loss In Fundraising

A proposal to charge an admission tax at events in Loudoun County has sparked concerns among nonprofit groups that rely on admission fees for funding.

The Loudoun Board of Supervisors is seeking authority from the General Assembly to impose the levy and has included the request in its legislative agenda. If approved, the tax would allow the county to charge up to 10 percent on entry fees to museums, gardens, concerts, sporting competitions and other events.

Nonprofit organizations said the tax could hurt their fundraising, noting that their budgets are shrinking because the slow economy has pinched the pockets of donors. They said they are worried they would have to raise their admission prices to cover the cost of the tax, which could reduce attendance at their events. They also voiced concern about how the extra work of collecting and accounting for the tax would affect their small staffs.

"I just think it's unfair for nonprofits or other charitable organizations to have to worry about an admissions tax when we're trying to stretch every dollar as far as it goes," said Karen Quanbeck, director of the Loudoun Museum.

But the sluggish economy also has taken a toll on the county government, which is grappling with a projected $176 million budget shortfall next year.

Supervisors said they hope that revenue from an admission tax would help lift the tax burden off homeowners in next year's budget.

"It's going to be a very difficult budget year next year," Supervisor James Burton (I-Blue Ridge) said. "I wish we could easily find a way to lower taxes, but as long as people keep moving in and demanding services, it's difficult."

"When we're in this kind of situation that we're in now, it really becomes apparent that you need other sources of revenue," Supervisor Susan Klimek Buckley (D-Sugarland Run) said.

Last month, about a dozen organizations, mostly nonprofit historical foundations, gathered for an information session about the admission tax. The Loudoun Convention and Visitors Association held the meeting at the request of several nonprofit groups, and a county official explained how the tax would be implemented.

The meeting did little to alleviate the groups' concerns that the tax would take a bite out of their revenue.

"We depend on donations and a few events, and you know, it's tough times out there for everybody," said Marc Leepson, board president of the Mosby Heritage Area Association in Middleburg.

Admission fees made up about 48 percent of the association's revenue this year. The association sponsors several events, including an annual three-day Civil War lecture conference where admission is up to $400 per person.