Would you pay an extra dollar every time you go see your favorite band or sports team so that Cincinnati could keep its winter shelter for individuals experiencing homelessness open, or help pay for addiction treatment? Or do recent tax increases have you feeling tapped out?
Voters will likely get to decide on that question in November, when a proposed city charter amendment by Cincinnati City Council members P.G. Sittenfeld and David Mann looks to be on the ballot.
The rest of city council will still have to vote on Sittenfeld's and Mann’s proposal to raise the city’s admissions tax from 3 to 5 percent to fund human services and neighborhood groups, but all six Democrats on council have indicated they support it.
The idea comes as Cincinnati once again struggles to scrape together enough money to approach a commitment it made in the 1980s to fund human services organizations at 1.5 percent of the city’s overall discretionary operating budget. The city hasn’t achieved that ratio in years. A budget proposal from Acting Cincinnati City Manager Patrick Duhaney cut that down to .69 percent, and adjustments by Mayor John Cranley brought the amount to .93 percent.
Sittenfeld and Mann say their proposal would bring the funding levels up to council’s commitment.
“Here’s what we know we can’t continue to do,” Sittenfeld said during an announcement at the Center for Addiction Treatment, which was left out of the city manager and mayor’s budget proposals this year. “Allow worthy organization to be pitted against worthy organization, each vying for the final chunk of the budget which is discretionary. Our city is smart enough and prosperous enough to offer a better way. And we think that’s exactly what we’re sharing here today.”
Sittenfeld went on to say that the funding represented a floor, not a ceiling, for future human services spending. As council and voters mull the proposal, Sittenfeld says Democrats on council will continue to pursue funding of 1 percent of the city’s budget for this fiscal year ahead of a June 30 deadline.
The city charges admissions tax on tickets to events like football and baseball games as well as concerts and other entertainment events. Most nonprofits like the Cincinnati Symphony Orchestra, as well as high school and college events, are exempt from the tax.
In 2014, the ticket tax raised about $5.6 million. About 40 percent of that money comes from visitors to the city. The proposed boost would mean an extra 50 cents on a $25 ticket or an extra dollar on a $50 ticket.
Some cities like Columbus don’t charge an admission tax. Cleveland, on the other hand, charges 8 percent, and Monroe charges 5 percent. About two-thirds of cities in Ohio that charge an admissions tax have set it at the same 3 percent rate currently charged in Cincinnati.
The move would raise about $3.6 million annually, Sittenfeld says. Under the amendment, $3 million of that would go to human services funding and the other $600,000 would go to fund community councils and community development corporations.
Sittenfeld's and Mann’s proposal could face some stiff competition at the ballot box, however.
The Southwest Ohio Regional Transit Authority is expected to ask for a countywide sales tax increase of between .5 and 1 percent to shore up the region’s lagging Metro bus system. Passage of that levy could reduce the city’s earnings tax, however, which is currently used to fund Metro.
Hamilton County Job and Family Services is also expected to put a levy on the countywide ballot, though it’s unclear how much that levy will ask for.
In addition, Hamilton County Commissioners this month passed a .2 percent hike on the county’s sales tax. And other property tax increases over the past couple years — for the Public Library of Greater Cincinnati and Hamilton County and Cincinnati Public Schools — could also fatigue voters.
Calling Cincinnati a "city of compassion," Sittenfeld expressed confidence that voters would approve the proposal.
“There’s one final thing we need to be clear about,” Sittenfeld said. “Your City Council — as well as the human service agency leaders and clients and neighborhood folks who are all with us — are letting you know how we feel about this important issue. But we’re not the ones making the final decision. Ultimately this will be up to the residents and voters of the City of Cincinnati.”