Gov. Paterson Halts Proposed Tax on Theater Tickets

The New York Times is reporting the good news that among the recent tax ideas that New York Gov. David Paterson eliminated on Wednesday from his 2009-2010 state budget proposal was an 8 percent levy on theater tickets that Broadway industry leaders had been very vocal about and fought fiercely.

The hike was not given top billing when Gov. David Paterson's proposal of 137 new and increased taxes to address state budget shortfalls was released, but producers discovered it buried in there and immediately reacted to the potential dangers it would bring. Theatre executives had feared the fee could of been a devasting blow to an industry reeling from the current economic climate.

Governor David A. Paterson, Senate Majority Leader Malcolm Smith and Assembly Speaker Sheldon Silver announced the agreement to eliminate the $1.3 billion in tax increases included in the proposed 2009-10 Executive Budget, which was met with much relief in the creative community.

The new agreement eliminates new taxes on common items, including previously tax-free goods and services such as the expected clothing under $110, digital downloads-internet, cable and satellite television, live concerts, movies, live theatre among other items.

Several theater organizations released statements of praise on Wednesday in reaction to the decision reports the Times, to read the entire New York Times article click here.