Sunday, July 8, 2012

Indio, CA backs away from additional tax to Music/Art Festival

"It was a tense few hours on Thursday for fans of the annual Coachella Valley Music and Arts Festival when it looked like producers might pull up stakes and leave their longtime Indio, California, home and possibly cancel the 2014 event.
What were you thinking Indio City Council?

But after promoter Goldenvoice balked at a proposed tax they said would cost them $6 million a year and bump up the price of a three-day pass by an additional $18, the City Council member who proposed it blinked.

Since its launch in 1999, Coachella has pumped millions into the local economy thanks to a surcharge on every ticket sold, as well as local revenue generated by hotel room taxes, permitting and camping fees, the employment of 5,000 temporary local workers and food and beverage purchases by the 150,000 attendees.
MTV News/Gil Kaufman, 7/6/12.  "Coachella Festival to Remain in Indio, Proposed tax that could have sent the famed festival elsewhere is suspended."    Read Article.

"Goldenvoice estimates that the festival brings in a massive sum for the city, including $800,000 in ticket fees, the sales tax on $9 million in food and beverage sales and another $800,000 tax for transient occupancy (levied on people occupying a place for less than 30 days).

Goldenvoice president Paul Tollett said that the ticket purchase tax was "outrageous for all the things we've done with Indio" and pledged to also move the Stagecoach Festival from the city. The loss of the two festivals would be a painful blow to the struggling city's economy."  Huffington Post/Entertainment, Kla Makarechi, 7/5/12.  "Coachella Leaving Indio?  Promoters skittish after city proposes hefty ticket tax. (updated).  Read article.

Submitted by Jim Alex

Posted by Kathy Meeh

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