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Posts Tagged ‘taxes’

56876a3cc5470-imagePhoto: Richmond Register
When artist Ken Gastineau moved to Berea, Kentucky, in 1987, there were few artists working in Old Town. Today, with taxpayer support, artists have become Berea’s economic engine.

Residents of Berea, Kentucky, have long known that their arts college was internationally admired. But it wasn’t until the loss of local mining jobs, that people began to see the arts as their most promising economic engine.

Ivy Brashear writes at NextCity, “One of the things people notice after spending any amount of time in Berea’s historic downtown is the density of galleries. For a small city in the foothills of the Appalachian Mountains, there are a lot of them.

“The state-designated ‘Folk Arts and Crafts Capital of Kentucky’ attracts visual artists, ceramicists and traditional craftspeople just like Nashville lures country musicians, albeit on a smaller scale. …

“City officials count 40 galleries in total, and three new restaurants and a gallery-cafe have opened in the past two years — not a bad showing of entrepreneurship in a city of fewer than 20,000 people.

“ ‘I believe we can legitimately claim we’re a town where art’s alive because any visitor, almost any time of the year, will be able to encounter active arts in motion,’ says Mayor Steve Connelly. …

“The little town that sprung up around Berea College [is] a rare growing, thriving city in a region that’s confronting steep population decline and rising rates of joblessness due in large part to the collapse of the coal industry. Eastern Kentucky alone has lost nearly 7,500 coal jobs since 2012. … The hope is for something place-based that can keep the economy humming while encouraging businesses to invest locally. In Berea, that thing is art and culture.

“Since 2010, the population of the city has grown by nearly 12 percent, making it one of the fastest growing places in the state. … With new people and businesses moving in, the city’s unemployment rate is four percent, compared to a statewide rate of five percent and a rate of seven percent in nearby communities, 2016 Census Bureau data shows.

“It’s difficult to make a direct connection between any one economic strategy and growth, but local officials say that their investment in building an arts economy has paid off because it gives people a reason to stay. …

“The [arts] culture was largely unsupported by any local government entity until about a decade ago. It was at this time that the city began to recognize what Connelly refers to as its ‘artistic infrastructure,’ and the need to invest in it. …

“It didn’t take long for local officials to recognize that Berea’s greatest local asset was its arts community, something that had been woven into the fabric of the town since the very beginning.

“Local artists were investing in Berea in big ways: by opening galleries and weaving shops, making and selling art, and starting local festivals that continue today.

“They were doing it largely on their own with little to no help from the government or Berea College. They were doing it because there was energy and synergy behind their efforts — a confluence of creativity and economy that city commissioners saw as an investment worth making.

“In 1982, the City Commission passed a hotel/motel tax and started a tourism commission. The World’s Fair was in Knoxville that year, and Berea wanted to catch I-75 travelers on their way south. The commission passed a 3 percent tax, and from 1982 to 2007, the all-volunteer tourism commission received about $125,000 a year from the tax.

“Further tax reform was made in 2007 during the Great Recession when Berea raised its property tax rate from the lowest in the state at .03 percent, to 10 percent. Soon after, they instituted a 3 percent restaurant tax, and the tourism budget quickly shot up to nearly one million dollars a year. …

“Berea Economic Development Director Danny Isaacs describes the decision to move away from traditional industries and look to the arts as a economic engine as one of sheer logic. …

“ ‘[Economic growth] goes back to building on what you have and what you’re known for,’ Isaacs says. ‘For Berea, the natural choice was arts and crafts.’ ”

More at NextCity, here.

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Art: Neal Personeus
This humorous piece, exhibited in 2015 at the Block Island Airport, is called “Yeah … but the view.”

People know Rhode Island for its beaches, its cuisine — and, of course, its arts. Perhaps the cluster of arts activities started with the Rhode Island School of Design. Perhaps people who attended RISD stayed around after graduation. It’s hard to say.

But there is no doubt that the state saw what a treasure artists were and decided to create incentives to get them to stick around and contribute.

Dustin Waters has details in Charleston City Paper.

“Little Rhody has become a powerhouse when it comes to attracting artists and art lovers to its shores. And the method by which state leaders have leveraged Rhode Island’s tax code to benefit the creative community could serve as a model for other states looking to cultivate a stronger arts economy.

” ‘When artists populate an area, it tends to get energized,’ says Randall Rosenbaum, executive director of the Rhode Island State Council of the Arts.

“Targeting specific neighborhoods in need of revitalization, Rhode Island’s General Assembly realized that an excellent way to breathe life into these areas was to foster the growth of arts in these communities. Establishing designated arts districts throughout the state in 1996 with the goal of attracting and keeping talented artists, state leaders offered two tax incentives for artists who were willing to live and work in these districts, according to Rosenbaum.

“First, all works of art created in these districts could be purchased exempt from state sales tax. This tax break extended to dealers, galleries, and shops within each district. …

“The second benefit proved to be a major boon. [Income] received by artists from work produced and sold in a designated arts district was exempt from personal state income tax. B…

“Finally, in 2013, the Rhode Island General Assembly extended the sales tax incentive throughout the entire state. This decision came after a meeting between artists, politicians, and businesspeople who saw the plan as a way to turn the state’s creative community into an economic driver. …

“In a 2015 report to the Rhode Island General Assembly prepared by the Rhode Island State Council of the Arts, participating artists were surveyed to find out how they felt about the first year of business under the state’s new guidelines. Not surprisingly, the general consensus among the artistic community was positive.

“Almost 58 percent of artists surveyed reported that their sales increased from the previous year before the sales-tax exemption was instituted. …

“While Rhode Island hopes to spread the news about the state’s arts incentives, it wouldn’t be a bad idea for more states to start taking better care of their artists — before all the local creatives start heading up to Providence.”

More here.

Hat Tip: ArtsJournal.

 

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