Does NYC help the producers to put on musicals on broadway???

[lorenzana]

Posted: 9/4/12 at 6:20am

Hello,

Here's my question.

I would like to know, if the city of NY, helps by anyway producers, actors on broadway?

We know that thanks to Broadway Theater, NYC is getting a lot of money ( taxes...), so in order to keep earning that money, do they help producers to put on musicals ?

Updated On: 9/4/12 at 06:20 AM

[wonkit]

Posted: 9/4/12 at 6:53am

No.

[lorenzana]

Posted: 9/4/12 at 7:13am

as simple as that ?!

So just to make sure I understand. When a producer put 60 millions on a show ( ex: Spider Man). Those 60 millions come uniquely from private investors ? And when we say private investors, we mean rich people willing to bet on one show ? Why would they do that, do they get tax exempt ...?or they just love gambling ?

As I'm trying to understand the difference between the market in France and the one in the US, let's go a little bit farther and let's say that if in France we don't put on a 60 millions ( even a 10 millions) show, it is because we don't have enough rich people willing to put their money in one show, knowing that it's even harder to recoup your investment in France than in The US ? Or just because we don't know how to attract ( or we don't have anything attractive) investors ?

Or, maybe it is just that french people are less risk-taking than americans ?

What do you think ????



Updated On: 9/4/12 at 07:13 AM

[D2]

Posted: 9/4/12 at 7:20am

Oui

[lorenzana]

Posted: 9/4/12 at 7:27am

Oui, mais oui pour quoi ? !!

Yes, but yes for what ?!!

Do you get tax exempt ? You just love gambling ? The French don't have the guts to put the money ?

[wonkit]

Posted: 9/4/12 at 7:37am

You will probably find lots of other threads that describe the risks of investing in Broadway productions. Most investors are individuals or corporations/partnerships that are either in the business of producing Broadway shows or are interested in the arts and are able to handle the complete loss of their investment. Only approximately 20% of Broadway productions recoup or make a profit, so there are easier ways to make money. You can use the losses to offset gains (but not regular income), but most investors still have losses left over from the market dissolve in 2008, so that use-of-tax-losses argument doesn't help much any more. Besides, both New York State and New York City are strapped for cash in this economy, and can hardly justify putting public moneys in a risky venture when the infrastructure, schools and pension plans are withering. SO that's about it. I have no idea how this compares with France.

[givesmevoice]

Posted: 9/4/12 at 7:41am

Non-profit theatres (Lincoln Center, Roundabout and Manhattan Theatre Club) are all eligible for funding from the Department of Cultural Affairs. Although I'm not privy to the intricacies of their relationship, the entire Lincoln Center for the Performing Arts (as well as The Public and New York City Center) is one of the thirty three Cultural Institutions Group. These groups receive operating subsidies and funding for heat, light, and power. In addition, the city provides assistance to arts groups through funding for capital construction projects.

In fiscal year 2008, the practice of funding organizations through line items in the City Council (in addition to possible funding from Cultural Affairs) was done away with. It's now done through peer-panel review systems.

(I don't have numbers later than 2009, but of DCA's total program funding budget of $26.9 million, almost $5.2 million went to theater groups. This was 19.3% of the total amount spent.)

[wonkit]

Posted: 9/4/12 at 9:11am

givesmevoice - big thanks for a great and helpful answer! Totally overlooked non-profits (I'm from the "gee I hope I can make a proft" side).

[Playbilly]

Posted: 9/4/12 at 9:17am

More of that socialist Frenchy mentality! In 'merica we want rich investors to lose their shirts on Broadway, not the public! We'd rather spend our money on bombs like B-2s not bombs like "Leap of Faith".

[lorenzana]

Posted: 9/4/12 at 10:54am

Givesmevoice. Thanks for the answer? I will try to find more infos on subsidies from the gov to the non for profit .

Playbilly. Sorry but I don't understand your message ? I'm asking a question not making a statement.

ps: just to precise I'm writing a research paper on the french business compare to the one in the US. Trying to see if Paris could one day be quite as big as Broadway.

[PalJoey]

Posted: 9/4/12 at 10:55am

Various nonprofit theaters receive varying amounts from the city but there are no municipal theaters or 100%-government-supported theaters, as there are in Europe.

NYC does not invest in commercial productions, nor should it. However, the city gives qualifying producers a few significant tax exemptions.


From the NYC.gov site:


===

THEATRE INCENTIVES

Commercial Rent Tax Exemption

In 1995, New York City enacted a new law under a subsection of the Commercial Rent Tax which offers theatrical productions in parts of Manhattan an exemption from rent tax for the first 52 weeks of production. The incentive applies to productions which use taxable facilities and are located on or south of the south side of 96th street in Manhattan. The 52 week period begins on the date that production of the theatrical work commences.

In 2005, the City adopted rules interpreting the statute to include dance plays among the theatrical works that qualify for the tax exemption and to further define when the production of a theatrical work begins. Under the new rules, productions which move from outside Manhattan or from a non-profit to a commercial theatre are entitled to start their 52 week clock afresh.

If you have questions about this incentive, contact the New York City Department of Finance via the “Contact Finance” facility on their website.



Sales Tax Exemption

Sales tax on most goods and services used for the production of live theatre in New York is exempt. This includes tangible personal property such as scenery and scenic elements, lighting and sound equipment, props and costumes; as well as services including installing, repairing, maintaining, or servicing tangible personal property; and producing, fabricating, processing, printing, or imprinting tangible personal property performed for a person who directly or indirectly furnishes the property.

In order for purchases to be exempt, performances of the named production are to be presented to the public in New York State at least five times a week for at least two consecutive weeks. The content of each of these performances must be the same. There must be an admission charge for each performance. The theatre or other place of assembly (excluding roof gardens, cabarets, or similar places) must have a seating capacity of at least 100 permanently installed seats.

To obtain the sales tax exemption, fill out Form ST-121.9 "Exempt Use Certificate for Certain Theatrical Productions" which is available from www.tax.state.ny.us. Detailed instructions are included on the form.

[givesmevoice]

Posted: 9/4/12 at 11:58am

lorenzana, I wrote my capstone paper for my Master's degree on the Department of Cultural Affairs' funding theatre in New York City, so if you wanted some suggestions for books and articles for the US side of your paper, let me know.

[bdn223]

Posted: 9/4/12 at 1:38pm

The only private producer to ever recieve money from the city of New York, at least to my knowledge was Disney. Technically it was not to create a show, rather it was to revovate the New Amsterdam, but the city technically loaned money to a producer to put on a show. It was during the "rebirth" of Time Square and 42nd Street and helped turn Time Square into the number 1 tourist destination in America. Also the city has made their money back and then some and was always guaranteed their money back.