A bill introduced in Congress on Dec. 15 would require large art-auction houses to pay a 7 percent royalty on sales of artworks costing more than $10,000, with half the money going to the creator of the work and the other half going to nonprofit art museums.
The royalty would apply only to works by living artists and deceased artists who fall within the period before their works become public domain—the 70-year waiting period after their death.
The sponsors of the bill, Sen. Herb Kohl (D-Wis.) and Rep. Jerrold Nadler (D-N.Y.), said, as reported in The LA Times, “The Equity for Visual Artists Act of 2011 would help put painters, sculptors and photographers on a similar scale with authors, playwrights, composers and musicians who already benefit from major income streams thanks to copyright law.”
In the United States, artists get paid only when they first sell their work. A small amount may come in later from reproduction fees, such as in print, online, or in film.
“The big money in art comes from the resales that often happen years after the artist was initially paid,” reports the L.A. Times. If the value of the work rises due to the artists’ growing renown, it’s the current owner and dealers that make the money on it. Nothing goes to the artist.
“This is a huge game-changer for the art market in this country. It'll be a great thing for artists,” Marisa Pascucci, associate editor of the Art Economist told The LA Times.
The proceeds that would go to nonprofit museums would help them buy artworks by living, U.S.-based artists.
Only auction houses with annual sales of $25 million or more would have to pay the royalty. The proposed bill would not apply to private sellers, art dealers, galleries, or online sites like eBay. Those dealers are currently considered too difficult to track.
The top auction houses such as Sotheby’s, Christie’s, Phillips de Pury, and Bonhams & Butterfields, would certainly be included in the list.
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