Survey of Arts Management

Course blog for American University PERF-570, Fall 2014

SURPRISE! $1.75M due for taxes

Here’s a really big “oh no” moment: the Richmond Performing Arts Center recently got a surprise tax bill for $1.75M.

The author of this article says he doesn’t understand how the theater ended up in this position. It sounds like the law is pretty straightforward, and if they had a for-profit arm, there should be an anticipation that they would be liable for taxes.

I work for an arts organization that lives in a city-owned building. If RPAC is anything like our organization, no one really knows who is responsible for what, when it comes to the city and the building. Just another example of how crucial it is to have well-trained management and experts who understand structures, legal issues, and taxation.

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2 comments on “SURPRISE! $1.75M due for taxes

  1. amyjoforeman
    October 31, 2014

    Oh my goodness, what a total nightmare. The whole situation seems a little messy and confusing, but it looks like the RPAC has the support of its city counsel to help handle the ordeal. It will be interesting to see how they address the issue going forward. I’m glad this isn’t going to end the org. Hopefully it is an educational lesson for similar organizations.

  2. gaochang619
    October 31, 2014

    I am so sorry to hear this bad news. How can they ignore or misinterpret such taxation and legal issues? As arts mangers they cannot take it as a joke. However I also doubt the other party of the taxation, that is, the city set the tax bill aside for 4 years or more time. It seems quite tricky when it comes to taxation issues.

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