Utah looking at tax on performers

A legislative task force will continue to look at possibly taxing live performers to bring extra tax revenue to the state.

The Motion Picture Task Force discussed the matter Wednesday — following up on its August meeting — and wants the Utah Tax Commission to do some research before its next meeting Oct. 21.

Rep. Sheryl Allen, R-Bountiful, the co-chairwoman, said such a tax may be handy as the task force seeks money from the Legislature.

She said she has been considering the tax idea for a couple years. "The reason it ties into this task force is we're going to ask for some funding, and if you can identify a possible source to increase the coffers, then it makes a request more palatable," Allen said.

Lynn Solarczyk, tax policy and legislation coordinator for the tax commission, told the task force that employers working in Utah for fewer than 60 days are not required to collect withholding for nonresidents. Typically, that applies to attorneys, expert witnesses, businessmen and construction workers, as well as athletes and entertainers.

Missouri, she said, has an exception to withholding exemptions for live entertainers, collecting the money through a portion of gate receipts. California and Louisiana have similar laws, "but I do know that some states are very aggressive on this," she added.

Allen was curious about possible negative effects, mentioning specifically the Utah Shakespearean Festival in Cedar City, but wants more information.

"We get more and more. In my adult time in Utah, I've been amazed at the number of live performances and how they have increased for consumers to go to, and we're not capturing those very good dollars," she said.

"I think this, as a source of income to the state that is currently untapped, has potential. Bear in mind, Missouri was, I think, one of the first ones to lead out in this arena, and they have Branson, which has regular live entertainers. We don't have that, but nevertheless when you're looking in your newspapers, the opportunities for consumers to go to this is growing and growing and growing."

The task force wants the Tax Commission to check what other states have done regarding tax withholding on live entertainment and to get a better understanding of the Missouri model. Rep. Karen Morgan, D-Cottonwood Heights, also wants to know if Missouri has suffered — for example, with entertainers avoiding performing in that state — as a result of its approach.

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