Sands Event Center Rips Mayor's Ticket Tax Proposal
Sands Event Center operator says 5 percent amusement tax is 'ultimately too much for our business to handle.'
Photos
Mayor John Callahan’s proposed 5 percent tax on ticketed events and shows is “ultimately too much for our business to handle,” a spokesman for the Sands Bethlehem Event Center said in a prepared news release issued Saturday.
“One incentive behind bringing our business to the city of Bethlehem was the lack of a city wide amusement tax,” said Jerry Deifer of the Vision Entertainment Group, which operates the center partners with the Sands in its ownership.
Callahan announced the new tax proposal during his budget address on Friday. The 5 percent “first responders fee” is estimated to bring in $600,000 in new revenue, which the city would devote exclusively to the police and fire departments.
The Sands would be among the most heavily affected by the new tax along with SteelStacks and Musikfest. The tax would also likely be applied to events at Lehigh University’s Zoellner Arts Center and Stabler Arena.
“The price of tickets would end up reflecting this tax increase. The general public would wind paying higher prices for tickets,” Deifer said.
“After 6 months of record setting numbers in entertainment for the Lehigh Valley and in excess of $10 million invested in the city, a plan to levy an amusement tax is a major change in the business model which was used to guide our investment decision.”
Deifer told The Express-Times that Vision is not considering walking away from its new 3,500-seat venue, but it might think twice before investing in an expansion.
“Although the proposal calls the amusement tax, a first responders fee, it should be known Vision Entertainment Group LLC, who operates the Sands Bethlehem Event Center, already pays city first responders at all major events we hold,” Deifer’s prepared statement said.
”We do not see this as a fair solution and will continue to probe this matter in more detail.”
In This article
-
Sands Bethlehem Event Center
77 Sands Blvd, Bethlehem, PA -
-
SteelStacks
101 Founders Way, Bethlehem, PA -
Lehigh University
19 Memorial Dr W, Bethlehem, PA
Frightwingslayer
9:41 am on Sunday, November 11, 2012
Seriosly, Sheldon Adelson had 53 million to throw away on a presidential campaign and is going to be hurt by these taxes..At Vision and Sands convention everything is ridiculously overpriced as it is..Do they really believe a 5% tax will make these folks go away??Seriously?? Better outside folks pay these taxes than city taxpayers be burdened with higher property taxes..
Linda Wimmer
6:00 pm on Sunday, November 11, 2012
Totally agree - the Sands forgets when they were playing nice to get their casino, etc. into Bethlehem how they promised so much money to the area, restaurants, well seems like the majority of the money stays in the Sands, restaurants & area residents have to pick up the slack. Maybe they could lower their tickets prices by 5%.... OH NO that would cut into their profits..
DebMel
9:43 am on Sunday, November 11, 2012
This is the same Mr. Adelson/Sands that spent tens of millions trying to defeat President Obama.
Peter
4:59 pm on Sunday, November 11, 2012
Seems like a nominal tax now. But that's where it all starts. This just opens the door to other things. 5% here and 8% there.. Then, before you know it, we live in Canada. Hell no! I don't care if Sheldon Adelson threw 53 Million to a presidential campaign. That was a voluntary contribution from money he earned. It wasn't extorted from him.
Peter
6:59 pm on Sunday, November 11, 2012
Why is this about the Sands Casino and not about your own wallets? Although they're being charged the tax, just like any other sales tax, it's only being passed on to you. Why would anyone be so thrilled about that?
Keith
9:41 pm on Sunday, November 11, 2012
6% sales tax. 5% this tax. That's 11% JUST in tax! Think of the big names the Sands will be forced to turn away because they'll have to pay them that much more. I think it's a mistake. The city is always raising taxes for "fire/ems" only to squander it on other things. The Mayor raised taxes for "New EMS station, and fire pumper" then took a fire station from Fire gave it to EMS and sunk the difference into pet projects while claiming to be broke. Enough stars on Main St. Lets concentrate on the REAL infrastructure.
Peter
4:03 pm on Monday, November 12, 2012
Where's the 'like' button?
Carol Sule
6:24 am on Saturday, November 17, 2012
couldn't have said this better myself.....enough raising taxes. Enough with the "STAR" in the middle of Main St. The residents of Bethlehem are struggling now to try and make ends meet let alone another tax increase. Think about the senior citizens who live on a small fixed income; and the young families just starting out. People are losing jobs right and left and now we have to pay more taxes. Wake up mayor, look around you ~ that star on the street will not bring more tourism: and where is the tax break the tax payers were supposed to receive from the casino? I dont know about anybody else but I didnt see any?????
Carmen
5:05 pm on Monday, November 12, 2012
Really now how much of a profit did the Sands see last year? Is it better to add an additional tax on the middle class or senior homeowner to pay for the First Responders especially if the Sands and Arts Quest is using city workers-not fair
Peter
11:11 pm on Monday, November 12, 2012
“One incentive behind bringing our business to the city of Bethlehem was the lack of a city wide amusement tax,” said Jerry Deifer of the Vision Entertainment Group, which operates the center partners with the Sands in its ownership.
What changed? Not even a week after the election, Callahan proposes 2 new taxes bestowed upon the citizens of Bethlehem. As I mentioned before, The Sands will not simply absorb this 'miniscule' tax, they'll pass it on to all paying attendees to their venues. Might be you. This is only the beginning. Let's see what your position will be when more tax proposals affect you directly. If the citizens of any municipality don't stop their own government from running amok, they most certainly hit home eventually. Guaranteed.
Patriot2
7:37 am on Wednesday, November 14, 2012
This is an excellent way to raise revenues to run the city as the majority of people paying the tax are from outside the city. Easton has this tax and the State Theatre has to charge the tax to their patrons so merely puts the Sands property on a level playing field. The Sands is whining for nothing as this is not going to disincentivize anyone from attending an event to see their favorite left wing pop star.
These entertainers are so overpaid that it is absurd and now the Event Center is causing them to be further overpaid as they compete against the State Theater for the same acts that came to the valley before this place ever opened. I have no sympathy for Vision Entertainment nor the Sands---this is an excellent idea by Callahan.
Peter
8:54 am on Wednesday, November 14, 2012
Taxation is never an "excellent way" to do anything. It's just a sloppy, lazy way for empowered govermnents, small or large, to impose their will on the people they're supposed to be representing. If the City of Bethlehem wasn't squandering $3.2 million of hard-earned taxpayer money on a Main Street 'facelift' that it doesn't even need (and in the midst of a bad economy, to boot), this new tax wouldn't even be a disucssion.
Patriot2
9:41 am on Saturday, November 17, 2012
The Main Street money is not part of the annual budget and not the problem here. The problem is pension and healthcare costs and Obamacare is magnifying that part of the problem. I do agree that it is a waste of money to replace all the sidewalks on Main Street. There needs to be some leveling of the slate in certain areas and the area coming off the 378 ramp needs attention as it is a mudhole--- but the entire sidewalks don't need replaced.