Chapter 3.04
ADMISSIONS TAX
Sections:
3.04.040 Certificate of registration.
3.04.050 Collection and remittance.
3.04.060 Printing admission charges and tax on tickets.
3.04.070 Posting admission charges and tax.
3.04.080 Business license required.
3.04.090 Inspection of records.
3.04.010 Definitions.
A. “Admission charge” or “admission” means a monetary charge for entrance to an event or place open to the public, and shall include, in addition to its usual and ordinary meaning, the following:
1. A charge made for season tickets or subscriptions;
2. A cover charge, or charge made for the use of seats and tables reserved or otherwise, and other similar accommodations;
3. A charge made for food and refreshment in any place where free entertainment, recreation or amusement is provided;
4. Automobile parking charges if the amount of the charge is determined according to the number of passengers in the automobile; and
5. A sum of money referred to a “donation” or similar term which must be paid before entrance is allowed.
B. “Event” means, in addition to its usual meaning, any performance, exhibition, dance, show, carnival, ride, contest, recreation or amusement, or similar activity.
C. “Government activities” means activities that are sponsored or conducted by any local, county, state or federal government or government agency.
D. “Person” means any individual, association, partnership, corporation or business entity of any type.
E. “Place” means any location, including but not limited to theaters, amphitheaters, auditoria, amusement parks, resorts, fields, halls, or stadia. The term shall be construed in a broadly inclusive manner.
F. “Nonprofit organization” means an organization, association, or corporation 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, as now existing or hereafter amended. (Ord. 791 § 2, 1997).
3.04.020 Tax levied.
There is hereby levied and imposed upon every person who pays an admission charge to any place or event within the city, except as specifically exempted hereinbelow, an admission tax in the amount of five percent of the amount paid for admission. (Ord. 791 § 2, 1997).
3.04.030 Exemptions.
The following admission charges shall be exempt from the admissions tax:
A. Activities of any elementary or secondary school;
B. Activities of any church or religious organization;
C. Activities of any nonprofit organization maintaining and exhibiting art, scientific, or historical collections for the benefit of the general public and not for profit;
D. Government activities; and
E. The activities of any nonprofit organization exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. (Ord. 1045 § 1, 2009; Ord. 993 § 1, 2006; Ord. 791 § 2, 1997).
3.04.040 Certificate of registration.
A. Every person intending to charge an admission to a place or event to which the admissions tax imposed by this chapter applies shall obtain a certificate of registration not less than 20 days prior to collecting any admission charges. The application for registration shall be made on a form provided by the finance officer, and shall include the person’s true and correct name, street address, mailing address if different, phone number, a list of admission charges to be made, and any other information reasonably required by the finance officer to protect the city revenue. The application form shall be signed and verified by the person sponsoring or conducting the performance, exhibition or event. The certificate of registration shall be valid for the calendar year for all admissions to the same place or type of event for the listed admission charges. The certificate of registration shall be prominently posted at the ticket booth or main entrance to the place or event for which admission is charged.
B. With respect to temporary or transient events, of which the finance officer shall be the sole judge, a registration certificate shall also be required of the owner, lessee or person in possession and control of the real property where the performance, exhibition or event will occur. Such owner, lessee or person in possession and control of the real property on which the performance, exhibition or event will occur shall be jointly liable for payment of the tax imposed by this chapter, to the extent it is not paid by the person sponsoring or conducting the event.
C. Failure to register as required by this section shall be a misdemeanor. Willful disregard of the direction of a police officer to close any place or discontinue any event due to failure to register as required by this section shall be a gross misdemeanor, and admission to the place or conduct of the event shall be subject to immediate and summary abatement by any police officer by any and all reasonable means. (Ord. 998 § 1, 2006; Ord. 791 § 2, 1997).
3.04.050 Collection and remittance.
A. The person receiving payment for admission charges on which a tax is levied shall collect the amount of the tax imposed from the person making the payment, and shall hold the same in trust until remitted to the finance officer 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.
B. The admissions tax shall be remitted, together with a return on a form provided by the finance officer, not later than the twenty-fifth day of the month next following the end of the quarter in which it was collected, except as provided in subsection C of this section. The return shall state the number of admissions sold, the price for each admission, and the amount of the tax, and shall be signed and verified by the person making the return.
C. With respect to transient events, such as carnivals, circuses, dances, exhibitions, shows, entertainment or amusement, which are of a temporary or transient nature, of which the finance officer shall be the sole judge, the following shall apply:
1. The finance officer may, in the officer’s sole discretion, require the posting of cash security for payment of the tax in an amount equal to 150 percent of the estimated admissions tax for the performance;
2. The finance officer may require the filing of the return and remittance of the admissions tax immediately upon the conclusion of the event; and
3. The owner, lessee or person in possession and control of the real property upon which the event occurs shall be responsible for payment of admissions tax, if the person conducting the event fails to do so.
D. In addition to the amount of the tax, there shall be added penalties for each payment of admissions tax made after the due date for the tax as follows:
1. One to 15 days, 10 percent with a minimum penalty of $10.00;
2. More than 15 days, 15 percent with a minimum penalty of $20.00.
E. Failure to collect and/or remit the admissions tax as required by this chapter shall constitute a misdemeanor, punishable as provided by law; provided, it shall be a defense to any prosecution under this subsection that there is a bona fide dispute as to the amount of the tax due, and the person has collected and remitted that portion of the tax which is not in dispute. (Ord. 998 § 2, 2006; Ord. 791 § 2, 1997).
3.04.060 Printing admission charges and tax on tickets.
Whenever an admission is charged to which the tax imposed by this chapter applies, a serially numbered or reserved seat ticket shall be furnished to the person paying such charge unless written approval has been approved from the finance officer to use a turnstile or other counting device which will accurately count the number of paid admissions. The ticket shall have conspicuously and indelibly printed or written on the face of that portion of the ticket to be retained by the sponsor the established price of admission, the admissions tax, any other applicable non-city tax or charge, and the total price at which each admission is sold. (Ord. 998 § 3, 2006; Ord. 791 § 2, 1997).
3.04.070 Posting admission charges and tax.
Whenever an admission is charged to which the tax imposed by this chapter applies, a sign shall be posted at a conspicuous place at the ticket office or entrance to the performance, exhibition or event stating the established price of admission, the admissions tax, any other applicable non-city tax or charge, and the total price at which each admission is sold. The sign shall also contain the true and correct name, mailing address and telephone number of the person conducting the performance, exhibition or event. (Ord. 791 § 2, 1997).
3.04.080 Business license required.
In addition to the tax imposed under this chapter, every person charging admission to a place and every sponsor of an event to which the tax imposed by this chapter applies shall obtain a business license pursuant to Chapter 5.04 SMC. (Ord. 791 § 2, 1997).
3.04.090 Inspection of records.
The books, records, and accounts of any person required to collect an admissions tax pursuant to this chapter shall, as to admissions tax and tax collections, be at all reasonable times subject to inspection and audit by the finance officer, and all such records shall be retained and made available for a period of at least two years. (Ord. 998 § 4, 2006; Ord. 791 § 2, 1997).
3.04.100 Administration.
This chapter shall be administered by the finance officer, who shall have authority to prescribe all forms required hereunder, and to promulgate reasonable rules and regulations for the administration hereof and it shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 998 § 5, 2006; Ord. 791 § 2, 1997).