For the past year, a number of Cleveland music clubs have been protesting an eight percent admissions tax that the city imposes on ticket sales at local entertainment venues. At a City Hall hearing yesterday, Cleveland Finance Director Sharon Dumas said, the math is pretty simple
SHARON DUMAS: Municipal governments are run by tax support, and that's how we deliver our services, and we do deliver services to all these facilities.
The city collected over 10 million dollars-worth of admissions taxes, last year, but most of that came from the big sports arenas and major concerts. While the eight percent tax might not sound like a lot of money, the club owners, like the Agora's Henry LoConti claim they are barely breaking even in the current economy and can't afford to charge the higher ticket prices.
HENRY LoCONTI: You're trying to tax the side of the industry that does not make a profit.
Last fall, several council members suggested dropping the tax entirely for music venues that hold less than 700 people. This past March, mayor Frank Jackson offered a counter proposal that kept the tax, but applied it to a smaller number of tickets. City Council President Martin Sweeney came up with a compromise this week, and council passed it last night. Under the current plan, clubs that hold 150 or less will pay no tax. Clubs that hold between 150 and 750 will pay a 4% tax. Bigger venues will have to pony up the full 8%. Chris Zitterbart who owns the downtown club Peabody's can live with that.
CHRIS ZITTERBART: If Peabody's at 4%, which is comparable to what they're paying in Pittsburgh --- it's 4% more than what they're paying in Columbus --- but, that still puts us close enough that I can justify the business model that we have here.
No word yet on whether Mayor Jackson will get behind this latest proposal. If he doesn't sign the measure in ten days. it will automatically become law. Still to be resolved is the issue of back taxes that the city wants to collect from Peabody's and from the Beachland Ballroom on Cleveland's far eastside.
