In the latter portion of the Report, the CIB lists the preceding 10 year history of a number of items - from tax revenues, operating revenues and expenses, as well as number of events and attendance numbers.
As you know, the CIB is responsible for the Indiana Convention Center, Lucas Oil Stadium, Banker's Life Fieldhouse, and Victory Field, as well as some other parking properties. They take in tax revenues from the Innkeepers, Food & Beverage, Car Rental, and Ticket sales at their venues. There is also a "Professional Sports Development Area" designated downtown, where all of the State Sales and Use Taxes, State and Local Income Taxes, and the F&B Taxes go to the CIB. Furthermore, the MDC gives the CIB $8 million of property tax revenues from the consolidated downtown TIF each year.
In looking over the table of tax revenues, it dawned on me that one could determine the size of a variety of entertainment/tourism market segments from the taxes recovered from those market segments. For instance, the CIB takes in the revenue from a 1% F&B tax, imposed on all food and beverage outlets in Marion County. Simply multiplying that tax revenue by 100 gives the size of the MC F&B market segment.
Similarly, if one uses 2003 (the first of the 10 year data noted) as the starting point, one can calculate the growth of any of these market segments over the decade. Again, for instance, if one divides each year's F&B tax revenue by the amount the CIB got in 2013, one would have the growth in the MC F&B market segment over time.
All of these can be compared to the rate of inflation, to ask the question, has the CIB helped grow the entertainment/tourism market more than inflation has?
PSDA Allocation - original footprint only
The revenue captured by the CIB from the original PSDA footprint was $6.45 m in 2003, and grew to $7.27 m by 2012. All revenue numbers from 2004-2012 were divided by the $6.45 m figure from 2003 to generate the red line in this graph. The blue line is the growth in inflation.
Of note is the fact that in mid-2005, the MC F&B tax doubled, and in 2008 the State Sales Tax went up from 6 to 7% and the Local Income Tax went from 1 to 1.65%; thus increasing the expected revenue to the CIB from this area. Of course, the Great Recession struck in 2008. In 2012, the City hosted the Superbowl.
If the CIB is to have an effect, one would most expect an increase in the PSDA, which is the footprint of the buildings owned by the CIB and nearby hotels. One is hard pressed to see any particular effect on the original PSDA besides inflation and random bounce.
The revenue captured by the CIB from the original ticket tax was $4.54 m in 2003, and grew to $6.5 m by 2012. The red line is growth from the ticket sales market segment. The blue line is the growth in inflation.
Of note is that Lucas Oil Stadium opened in 2008. Also, the Great Recession struck in 2008 and the City hosted the Superbowl in 2012.
There would seem to be some indication of an early increase in these sales beyond inflation, followed by a slightly greater than inflation growth in the admissions tax revenue - but I do not have any numbers to indicate if ticket prices rose faster than inflation, or if the number of tickets sold increased. As with the PSDA, one would expect any effect of the CIB to show up in its own facilities first and foremost.
The revenue captured by the CIB from the original auto rental tax was $1.85 m in 2003, and grew to $2.35 m by 2012. The red line is the growth in the car rental market segment. The blue line is growth in inflation.
Of note is that the Great Recession struck in 2008 and the City hosted the Superbowl in 2012. The airport opened its new terminal in 2008, along with new car rental facilities.
The CIB, and those who supported the recent hike in the auto rental tax, keep telling us that only visitors pay for rental cars. There is not strong evidence that the car rental business has improved much beyond inflation over this decade.
The revenue captured by the CIB from the original 1% tax on food and beverage sales in Marion County was $15.62 m in 2003, and grew to $21.36 m by 2012. The red line is the growth in the Marion County F&B market segment. The blue line is growth in inflation.
Of note is that the Great Recession struck in 2008 and the City hosted the Superbowl in 2012.
Once again, inflation bounce could easily account for the 10 year growth in the F&B market segment. We will have to see what 2013 and beyond bring, if we are to decide if the 2012 increase is Superbowl bounce or a sustained increase.
Innkeeper's Tax - original 1% on Marion County hotels
The revenue captured by the CIB from the original 1% innkeeper's tax was $3.21 m in 2003, and grew to $4.52 m by 2012. The red line is the growth in the Marion County Hotel market segment. The blue line is growth in inflation.
Of note is that the Conrad Hotel opened in 2006 and the JW Marriott in 2011. Also, the Great Recession struck in 2008 and the City hosted the Superbowl in 2012.
Any growth in the hotel market segment appears to bounce around inflation. Again, we will have to see future years' numbers in order to interpret the 2012 number as being caused by the Superbowl or by sustainable growth.
All Tax - this is the growth in all tax revenues and 'other assistance' received by the CIB over the decade from 2003 to 2012
The total tax revenue received by the CIB was $48.07 m in 2003, and grew to $138.78 m by 2013. The red line is growth in all tax revenue. The blue line is the growth in inflation.
There is little evidence that the growth in the entertainment/tourism market segments touted as being enriched by the activities of the CIB is anything but due to inflation, and perhaps the Superbowl. That is reflected in the fact that the initial taxes levied for the CIB were not growing well enough to support the ambitions of the CIB. Thus, additional tax hikes were implemented and other sources of cash were found.
The footprint PSDA was expanded twice in the decade from 2003 to 2012; the Admissions Tax was increased once; the Auto Rental Tax was increased once; the F&B Tax was increased once; the Innkeeper's Tax was increased twice; and the MDC began gifting the CIB. Just this year, the Admissions Tax and Auto Rental Tax were increased yet again. The two $9 m loans from the State to the CIB are not included in these numbers.
Bottom line - inflation accounts for nearly all, if not all, of the growth in several entertainment/tourism market segments in recent years. The only thing growing beyond inflation is the amount of taxes being levied to feed the CIB.