Special Taxes and Fees

Dedicated funding mechanisms remain relatively uncommon among state arts agencies. In fiscal year 2025, only 11 states allocated arts funding through a special tax or fee, yet these mechanisms were highly impactful—accounting for 79% of total revenue for those agencies.

The majority of state arts agencies continue to rely on general fund appropriations, with the median agency receiving 45% of its funding from the state general fund.

The origins of dedicated revenue streams vary. In states like Arkansas and Minnesota, voters amended the state constitution to establish new taxes, with a portion earmarked for the arts. More commonly, however, state legislatures enact these funding sources through statute. Some are explicitly intended to replace general fund appropriations, while others are designed to supplement existing support, often including provisions that prohibit supplanting general funds.

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

States Receiving Funding from Special Taxes and Fees