Chapter 3.18 ADMISSION TAX CODE

Every person, firm or corporation, prior to conducting or operating any event, or place of entrance, to which an admission charge is made, shall complete a certificate of registration and file the same with the finance director. The certificate of registration shall continue to be valid until December 31st of the same year in which it was issued. A list of admission charges for all events must accompany the certificate of registration. The application for certificate of registration, or a duplicate of it, shall be posted in the ticket office or box office where tickets or admission are sold.

Whenever registration is made for the purpose of operating or conducting a temporary or transitory event by persons who are not the owners, lessees or custodians of the building, lots or place where the activity is to be conducted, both the person conducting the event and the owner, lessee or custodian of the location of the event shall register for this event. Such owner, lessee or custodian, shall be held jointly liable for collection and remittance of the said tax. The owner, lessee and/or custodian shall be responsible for the remittance of the entire admissions tax unless the tax is paid by the conductor of the event. (Ord. 1350 § 1, 1997).

3.18.020 Definitions.

The following definitions shall apply throughout this chapter:

A. “Admission charge,” in addition to its usual and ordinary meaning is a monetary charge for an event open to the public, including, but not limited in meaning to:

1. Charges for entrance and observation, including, but not limited to:

a. A charge made for season tickets or subscriptions;

b. A cover charge or a charge made for use of seats or tables, reserved or otherwise, and similar accommodations;

c. A charge made for food and refreshments in any place where any free entertainment, recreation or amusement is provided;

d. A charge made for admission to any theater, public dance or dance hall, cabaret, adult cabaret, amphitheater, club, haunted house, auditorium, stadium, athletic pavilion, park or field, baseball or athletic park, skating rink, swimming pool, circus, or similar place.

i. Admission to Any Carnival, Amusement Park, Etc. Admission tax shall be imposed upon admission to carnivals, amusement parks, etc.; however, the city will not impose an additional tax upon admissions to any mechanical devices, amusement type booths or activities and/or rides such as merry-go-round, ferris wheel, etc. within that event, unless there is no admission charge “at the gate” for such events. Then the person conducting the event is required to collect a tax for admission to the various rides;

e. A charge made for admission to or rental or use of equipment or facilities to any public golf course, facility, or driving range; if the rental of the equipment or facilities is necessary to the enjoyment of the golf course, facility, or driving range, at which a general admission is charged, the combined charges shall be considered as the admission charge.

2. Other activities, including the following:

a. A charge made for automobile parking where the amount of the charge is determined according to the number of passengers in an automobile;

b. A sum of money referred to as “a donation” or similar payment which must be paid before entrance is allowed.

3. For purposes of illustration only, the following table provides examples of activities subject to the admission tax (this list is not all inclusive):

Taxable	Not Taxable
1. For-profit theater	1. Annual dinner of a nonprofit organization which is open to members only
2. Movie theater	2. Tickets to a show performed for employees only of a for-profit company
3. Cover charge in restaurant lounge	3. Chamber of Commerce business fair which is open to members only
4. Charge for admittance to adult entertainment cabaret	4. Programs by schools and service organizations
5. Charge for entrance to a nonprofit organization’s trade show which is open to the public
6. Charge for a golf course which is open to the public

B. “Chapter” shall mean chapter 3.18 of the Burlington Municipal Code, as it may be amended or replaced from time to time.

C. “Government activities” shall mean activities that are sponsored or conducted by local governments, county, state or federal governments. This shall include programs or events sponsored by the city of Burlington.

D. “Nonprofit tax-exempt organization” means an organization, corporation, or association organized and operated for the advancement, appreciation, public exhibition or performance, preservation, study and/or teaching of the performing arts, visual arts, history, science, or public charity providing human services, or public education which is currently recognized by the United States of America as exempt from federal income taxation pursuant to Section 501 (c)(1) or (3) of the Internal Revenue Code of 1954, as it may be amended or replaced from time to time.

E. “Religious organization” means an organization engaged in the practice of a particular faith or central beliefs.

F. “Secondary or elementary school” means any public or private primary, middle school, junior high school, high school, or any accredited college, junior college, university, or the recognized student body association thereof.

G. “Service organization” means an organization that is dedicated to public service, whether or not a nonprofit tax-exempt organization as defined in subsection D of this section, including but not limited to the Chamber of Commerce, Rotary Club, Kiwanis Club, Soroptimist Club, Lions Club. (Ord. 1350 § 1, 1997).

3.18.025 Tax imposed.

There is levied and shall be collected a tax from every person, without regard to age, who pays an admission charge. Such tax shall be measured by applying the rates set forth in this chapter to the admission charge. The tax herein levied shall be paid by the person paying the admission charge and shall be collected and remitted by the person to whom the admission charge is paid. The tax required to be collected under this chapter shall be deemed held in trust by the person required to collect the same until remitted to the clerk as provided in this chapter.

No tax shall be levied on any person who is admitted free and from whom no compensating payment is obtained. The tax on reduced admission charges shall be charged on such reduced charge and not on the regular admission charge. (Ord. 1350 § 1, 1997).

3.18.030 Tax on admission.

Upon every person who pays an admission charge within the city, as to such persons, the amount of tax with respect to such activity shall be equal to the admission charge multiplied by the rate of five percent. (Ord. 1350 § 1, 1997).

3.18.035 Exemptions.

The following shall be exempt from any tax imposed under this chapter:

A. Admission charges for any activity of any elementary or secondary school.

B. Activities of churches and religious organizations.

C. Government activities, provided that for-profit activities conducted in conjunction with such an event shall not be exempt.

D. Events sponsored by nonprofit tax-exempt organizations as defined in BMC 3.18.020(D).

1. The admission tax levied and imposed pursuant to BMC 3.18.025 shall not apply to any person paying an admission charge to an event that is sponsored by a nonprofit tax-exempt organization, as defined in BMC 3.18.020(D), when the conditions of both of the following subsections (a) and (b) are met:

a. The nonprofit tax-exempt organization:

i. Publicly sponsors and through its members, representatives or personnel, promotes and publicizes the event, or

ii. Publicly sponsors the event and (1) performs a major portion of the performance; or (2) supplies a major portion of the materials on exhibit; or (3) when the event is part of a season or series of performances or exhibitions, performs the major portion of the performances or exhibitions in the season or series or supplies a major portion of the materials on exhibit;

b. The nonprofit tax-exempt organization receives the use and benefit of the admission charges collected.

2. The exemption to the admission tax provided in this section shall not apply to:

a. An event sponsored by a nonprofit tax-exempt organization in which the fee paid for any one for-profit contract is greater than 80 percent of anticipated gross proceeds where the anticipated gross proceeds of the event exceed $300,000;

b. An event in which a nonprofit tax-exempt organization lends its name as an endorsement to an ineligible person or organization for the purpose of invoking the tax exemption provided by this section.

3. In order to receive the benefit of the tax exemption provided by this section, the nonprofit tax-exempt organization must be registered with the city of Burlington finance department pursuant to BMC 3.18.040 at least 30 days prior to the first event for which an exemption is sought.

F. Activities of service organizations. (Ord. 1350 § 1, 1997).

3.18.040 Deductions.

In computing the tax imposed by this chapter, the following amounts may be deducted from the measure of the tax: Amounts derived from business which the city is prohibited from taxing under the Constitution of this state or the Constitution or laws of the United States. (Ord. 1350 § 1, 1997).

3.18.045 Counting number of admissions.

Whenever a charge is made for admission to any place, a serially numbered or reserved seat ticket shall be furnished to the person paying such charge unless written approval has been obtained from the finance director to use a turnstile or other counting device which will accurately count the number of paid admissions. (Ord. 1350 § 1, 1997).

3.18.050 Printing admission charges.

The established price of admission, any noncity tax, city tax, and the total price at which each admission ticket or card is sold shall be conspicuously and indelibly printed or written on the face or back of that part of the ticket which is to be retained by the management of the place to which admission is gained. This requirement may be waived in regard to temporary or transient events, which due to time make it impossible to print up admission tickets. This waiver must be reviewed and authorized by the finance director’s office prior to authorizing the event.

It is unlawful for any person to sell an admission ticket or card without having the name of the person conducting the event and the price of admission printed, stamped or written thereon. The admission tax due shall be based on the established price printed on each ticket. (Ord. 1350 § 1, 1997).

3.18.055 Unlawful sales of tickets in excess of price.

It is unlawful for anyone to sell or offer to sell an admission ticket or card at a price in excess of the price printed, stamped or written thereon. This section does not prohibit a ticket agent, duly authorized to sell tickets by the person or entity responsible for or in charge of conducting the subject event, from collecting a reasonable handling charge from the purchaser, in addition to the disclosed ticket price, consistent with general marketing practices in the Burlington area. The handling charge shall also be subject to tax in a sum equal to five percent of the amount of such excess or handling charge. (Ord. 1350 § 1, 1997).

3.18.060 Posting admission charge.

At all events, when a charge is made for admission a sign must be posted in a conspicuous place at its entrance or ticket office of the event which breaks down the admission charge as to (1) established price of admission, (2) noncity tax imposed, if any, (3) city tax imposed, and (4) total price. The name of the company or organization conducting the event shall also be posted at the same place. (Ord. 1350 § 1, 1997).

3.18.065 Tickets sold elsewhere than regular ticket office.

Whenever tickets are sold by a person outside of the city limits for an event located within the city limits, that person shall collect the admission tax imposed thereon. Whenever tickets or cards of admission are sold elsewhere than at the ticket or box office of the place or event, any price or charge made in excess of the established price or charge at such ticket or box office shall also be taxable in a sum equal to five percent of the amount of such excess. This additional tax shall be paid by the person paying the admission charge and shall be collected and remitted in the manner provided in BMC 3.18.070 by the person selling such tickets. (Ord. 1350 § 1, 1997).

3.18.070 Collection and remittance.

The person, firm or corporation receiving payment for admission on which a tax is levied under this chapter, shall collect the amount of the tax imposed from the person making payment for admission, shall hold said tax in trust until the same is remitted to the finance director as herein provided, and shall be personally liable for the amount of such tax if the same is not collected and remitted as herein provided; provided, however, that for temporary or transient events, the owner, custodian, etc., may be responsible for the payment of the tax per BMC 3.18.015 and 3.18.070.

Unless otherwise provided by the finance director, the tax imposed by this chapter shall be due and payable on a quarterly basis and remittance therefor shall accompany each return and be in the finance director’s office by 5:00 p.m. P.S.T. on or before the last day of each April, July, October and January, by the person, firm or corporation collecting the same. The quarterly returns shall be made on forms provided by the finance director, separately stating the number of admissions sold, the price for each admission, and the amount of tax, shall be signed and verified by the person making the return, and shall contain such other information as the finance director may specify. (Ord. 1350 § 1, 1997).

3.18.075 Penalty for late payment.

For each payment due, if such payment is not made by 5:00 p.m. on the due date, there shall be added penalties as follows:

A. One to 15 days delinquency, 10 percent with a minimum penalty of $10.00;

B. After 15 days delinquency, 15 percent with a minimum penalty of $10.00.

Failure to pay tax is a violation of this chapter and may be punished as such in addition to the late fees imposed. (Ord. 1350 § 1, 1997).

3.18.120 Transient business remittance.

Whenever any theater, carnival, circus, show, exhibition, public dance, entertainment or amusement or the like, makes an admission charge which is subject to the tax herein levied, and the same is of a temporary or transitory nature, of which the finance director shall be the judge, the finance director may require the return and remittance of the admissions tax immediately upon its collection or at the conclusion of the series of performances or exhibitions, whichever the finance director deems appropriate. An application for a certificate of registration shall be required as noted in BMC 3.18.015. For temporary or transient events, the owner, lessee or custodian shall be responsible for payment of this tax if the person conducting the event fails to do so. Failure to comply with any requirement of the finance director as to reporting and remittance of the tax as required shall be a violation of this chapter. (Ord. 1350 § 1, 1997).

3.18.125 Applications and returns confidential.

The applications and returns made to the finance director pursuant to this chapter shall not be made public, nor shall they be subject to the inspection of anyone except the mayor, city attorney, finance director or authorized agent, the members of the city council, etc., unless otherwise provided by law. It is unlawful for any person to make public or to inform another person as to the contents or any information contained in or to permit inspection of any application or return except as authorized in this section or otherwise in the State Privacy Act or other provisions of state law. (Ord. 1350 § 1, 1997).

3.18.130 Sporting events and places.

There shall be levied an admission tax of five percent of the amount paid where an admission is required to be paid to gain entrance to any building, enclosure, place or area in which there is a swimming pool, skating rink, bowling alley, golf course, golf driving range, miniature golf course, short nine, or to gain entrance to such pool, rink or course itself, that shall be applicable to both private and public facilities or any other similar event charging admission fees. This tax shall be assessed on admission charges whether in the form of membership fees or other charges for privilege of using the above areas. (Ord. 1350 § 1, 1997).

3.18.135 Ticket sale outlet.

The admissions tax shall apply to tickets sold by Burlington based ticket sales outlets for local events only. Additionally, the tax shall also apply to ticket sales outlets which are not located in Burlington but are selling tickets for events in Burlington. (Ord. 1350 § 1, 1997).

3.18.140 Overpayment of admissions tax.

Any taxpayer who has overpaid taxes due the city under this chapter may submit a petition for a refund in accordance with chapter 3.68 BMC. (Ord. 1762 § 2, 2012; Ord. 1350 § 1, 1997).

3.18.145 Inspection of records.

The books, records, and accounts of any person, firm or corporation collecting a tax herein levied, shall, as to admission charges and tax collections, be at all reasonable times subject to examination and audit by the finance director and/or the State Auditor, and all such records shall be retained and be available for such inspection for a period of at least six years. (Ord. 1350 § 1, 1997).

3.18.150 Violator/violations.

Any person who directly or indirectly performs or omits to perform any act in violation of this chapter, including reporting and posting requirements, or aids and abets the same, whether present or absent, and every person who directly or indirectly counsels, encourages, hires, commands, induces or otherwise procures another to commit such violation, is and shall be a principal under the terms of this chapter, subject to penalty, and may be proceeded against as such. (Ord. 1350 § 1, 1997).

3.18.160 Penalty for violations.

Every person violating or failing to comply with any provision of this chapter or any lawful rule or regulation adopted by the finance director pursuant thereto, is guilty of a gross misdemeanor and upon conviction thereof shall be punished by a fine not to exceed $5,000 or by imprisonment for a term not to exceed one year or by both such fine and imprisonment. (Ord. 1350 § 1, 1997).