Special Taxes and Fees

Special taxes and fees have long been used by local governments to support the arts, but are less common at the state level. In fiscal year 2022, 10 state arts agencies received funding through a special tax or fee.

In FY2022, the 10 state arts agencies below received 28% of their total revenue from special taxes and fees. The median percentage of state funding received from the general fund is 76.2%.

State arts agencies have been receiving revenue from special taxes and fees in a variety of ways. In Arkansas and Minnesota, voters amended the state constitution to create new taxes, a portion of which is used to support the arts in each state. It is more common that the new taxes are created by the legislature. In some cases taxes and fees are meant to replace general fund appropriations, and in other cases the statute specifically states that funds cannot supplant the arts agency’s general fund appropriation.

For more information on special taxes and fees or other dedicated revenue strategies, contact NASAA Research Manager Mohja Rhoads.

States Receiving Funding from Special Taxes and Fees