The arts are a powerful catalyst for economic development. A representative of the Austin Convention and Visitors Bureau said, “our established music scene is what drew the creative tech-types here in the first place.” It has also created a world renowned week long music festival, SXSW.
Economic development, in order to attract and retain businesses in specific sectors, can create tax exemptions, fee reductions, and even active promotional programs. If the City is serious about creating a significant role for arts and culture, we should start thinking about the arts in terms of business.
One artist I know rents a store front which she uses as a studio. She stores materials there, and creates work, but doesn’t sell her work there. The City now requires her to pay $300 per year for a business license. It doesn’t sound like much money but, for most artists, it is.
Musical instrument repair shops and retailers, theatre groups, museums, independent recorded music and book stores, art supply stores, music recording and video production studios, performance venues, and art galleries could benefit from tax exemptions and fee reductions. Their bottom lines are so fragile that any economic relief can mean the difference between success and failure. If we choose to recognize these businesses as valuable cultural assets, if we understand that their presence here significantly impacts the quality of life for all residents, and acts as a magnet for tourism, then we can justify allowing them some relief.
Here’s one example: The last time I checked, entertainment permit fees were about $1500 per year. For a huge restaurant, that’s an insignificant investment. For smaller restaurants, however, that’s a quite a financial hit. It makes sense to base the fees on occupancy so that smaller restaurants can present live, amplified music, and the City can have live entertainment in more venues.
So, if we reduce or eliminate business license fees for individual artists, create tax incentives and fee reductions for arts-related businesses, and create a sliding scale for entertainment permit fees, our City will benefit significantly.
Enacting such policies will not cost us anything in new expenditures, but may produce an insignificant reduction in revenues. Any fiscal loss the City experiences will be made up by the blossoming of a new creative renaissance.