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 2018, nine state arts agencies received funding through a special tax or fee.

These nine states received a median of 74.0% of their state funding from special taxes and fees in FY2018 and only 22.4% from their state’s general fund. The median percentage of state funding received from the general fund for all state arts agencies is 77.1%.

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 these taxes and fees are meant to replace general fund appropriations, and in other cases the statute specifically states that these 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 Senior Director of Research Ryan Stubbs.


States Receiving Funding from Special Taxes and Fees