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City of Cleveland Codified Ordinances, Chapter #195
PART ONE — ADMINISTRATIVE CODETitle XVII — TaxationChapter 195 — Admissions TaxComplete to June 30, 2007
CROSS REFERENCES
Division of Taxation; Administrator, CO 127.30, 127.31
As used in this chapter:
(a) "Admission charge" means the charge made for the right or privilege to enter into a place. However, if such charge includes rental of property or services it shall be deemed to be an admission charge if so designated, unless the charge is for rental or services and persons who do not use such property or services are admitted free. If a lesser charge is made to persons who do not desire to use the property or services offered, the lesser charge shall constitute the admission charge. The designation of the charge as a rental or service charge shall not be construed to avoid the application of the tax if it is in effect a charge for admission.
(b) "Commissioner" means the Commissioner of Assessments and Licenses of the City.
(c) "Place" includes, but is not restricted to, theaters, dance halls, amphitheaters, auditoriums, stadiums, athletic pavilions and fields, baseball and athletic parks, circuses, side shows, swimming pools, outdoor amusement parks and observation towers.
(d) "Person" means any individual, receiver, assignee, firm, copartnership, joint venture, corporation, company, joint stock company, association, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise.
(Ord. No. 284-91. Passed 3-4-91, eff. 3-4-91)
Note: Pursuant to Section 1 of Ord. No. 284-91, Section 195.01 shall take effect April 1, 1991.
To provide funds for the purposes of general municipal operations, procurement of fixed assets or permanent improvements including the payment of costs of acquiring, constructing, reconstructing, rehabilitating, remodeling, renovating, enlarging, improving, equipping or furnishing facilities by contract, lease, lease-purchase, or otherwise, and including the improvement of the municipal stadium by cooperative arrangements with other political subdivisions or nonprofit corporations, payment of lease rentals, lease-purchase amounts, debt charges or other obligations, the administration of deficits in City funds and for all other lawful purposes, there is hereby levied and imposed upon every person who pays an admission charge to any one place:
(a) A tax of eight percent (8%) on the amounts paid for admission to any place, including admission by season ticket or subscription. The tax shall apply to every admission within the City for which a charge is made, notwithstanding that the sale of the ticket or other evidence of right of admission thereto is made outside of the City.
(b) A tax of eight percent (8%) on the excess of the amounts paid for tickets or cards of admission to theaters, operas and other places of amusement, sold at newsstands, hotel and places other than the ticket offices of such theaters, operas or other places of amusement, over and above the amounts representing the established price therefor at such ticket offices, such tax to be returned and paid in the manner provided in Section 195.04 by the person selling the ticket.
(c) A tax of eight percent (8%) on the amount paid for admission to any public performance for profit at any roof garden, cabaret or other similar entertainment in case the charge for admission is in the form of a service charge, cover charge or other similar charge.
(d) A tax of eight percent (8%) on the amount paid as annual membership dues by every club or organization maintaining a golf course, and a tax of eight percent (8%) on greens fees paid to golf courses either under club or private ownership.
(e) A tax of six percent (6%) on the amount paid for admission to any museum on land leased by the City and subject to tax pursuant to division (b)(2) of Section 195.03.
(Ord. No. 1025-A-95. Passed 6-29-95, eff. 6-29-95)
(a) No tax shall be levied under this chapter with respect to any admission all the proceeds of which inure:
(1) Exclusively to the benefit of religious, educational or charitable institutions, societies or organizations; societies or organizations for the prevention of cruelty to children or animals or societies or organizations conducted for the sole purpose of maintaining symphony orchestras and receiving substantial support from voluntary contributions, or of improving any municipal corporation, or of maintaining a cooperative or community center, moving picture theater, or swimming pool, if no part of the net earnings thereof inures to the benefit of any private stockholder or individual.
(2) Exclusively to the benefit of persons in the military or naval forces of the United States, or of National Guard organizations, reserve officer associations or posts or organizations of war veterans or auxiliary units or societies of any such posts or organizations, if such posts, organizations, units or societies are organized in the State, and in no part of their net earnings inures to the benefit of any private stockholder or individual.
(3) Exclusively to the benefit of members of the police or fire departments of any municipal corporation, or the dependents or heirs of such members.
(4) Exclusively to the benefit of the general revenue fund of any municipal corporation or exclusively to the benefit of any fund of any municipal corporation under the control of a recreation commission.
(b)(1) The exemption from tax provided by this section shall, however, not be allowed in case of admissions to wrestling matches, prize fights or boxing, sparring or other pugilistic matches or exhibitions, unless exclusively for the benefit of those organizations set forth in division (a)(2) of this section, nor in the case of admissions to any athletic game or exhibition the proceeds of which inure wholly or partly to the benefit of any high school, academy, preparatory or other school or wholly or partly to the benefit of any college or university.
(2) The exemption from tax provided by division (a)(1) of this section shall, however, not be allowed in case of admissions to museums located on land leased by the City pursuant to a lease agreement entered into after August 21, 1991.
(c) Immediately after the event for which an exemption from admission tax has been allowed, upon the demand of the Commissioner of Assessments and Licenses, the treasurer of the institution, society or organization for whose benefit such event was held shall file an itemized statement with the Commissioner setting forth the amount of money actually received by such treasurer together with the expenses of promoting and conducting such event. Such statement shall be used as a basis of subsequent requests for exemption from admissions tax for the benefit of such institution, society or organization. If such statement shows a disproportionate expenditure for promoting and conducting such event, in relation to the profits, if any, no such exemption shall thereafter be allowed to such institution, society or organization.
(d) The exemption from tax provided in this section shall not be allowed to any institution, society or organization which does not control the sale of admissions to the event for which the exemption is requested, nor shall any exemption be allowed where talent, services or other items are compensated for on a percentage basis if such percentage results in a payment in excess of the flat rate ordinarily charged for the same talent, services or other items.
(e) The limitation contained in this section, upon the exemption from tax in case of admissions to wrestling matches, prize fights or boxing, sparring or other pugilistic matches or exhibitions, shall not be deemed to apply to any such matches or exhibitions in which all the contestants are amateurs and the entire proceeds thereof are devoted to a legitimate charitable purpose, excepting therefrom the necessary expenses, which shall in no event include payment to any contestant other than his necessary traveling expenses.
(f) Notwithstanding anything else in this chapter to the contrary, no tax shall be levied under this chapter with respect to any admission to the indoor arena facility (the "Gateway Arena") constructed by Gateway Economic Development Corporation of Greater Cleveland ("Gateway") pursuant to that certain Agreement Relating to Ownership, Financing, Construction and Operation of a Sports Facility and Related Economic Development Projects, dated as of November 7, 1990, as amended by the First Amendment as authorized by Ordinance No. 325-92 (the "Three-Party Agreement"), between the City, Gateway, and the County of Cuyahoga, Ohio (the "County"), provided, however, that the exemption provided by this division (f) shall apply and be effective only as long as there are outstanding any Arena Bonds to which reference is made in the Cooperative Agreement between the City and County authorized by Ordinance No. 327-92 (the "Cooperative Agreement") (such Bonds being hereinafter referred to as the "Arena Bonds") and only if and as long as the following conditions are met and shall have been certified to be met by the Director of Law to the Commissioner of Assessments and Licenses:
(1) Gateway shall pay or shall cause the lessees or operators of the Gateway Arena to pay to the Trustee (the "Trustee") for the holders of the Arena Bonds amounts equal to the taxes that would have been levied under Section 195.02 but for the exemption provided by this division (f) at the times and in the manner that such taxes would have been payable under this chapter. In computing the amount payable pursuant to this division (f)(1), the admission charges for admissions to the Arena shall be deemed to be net of the amount payable pursuant to this division (f)(1).
(2) the County shall, in its trust agreement or a related agreement with the Trustee, require the Trustee:
A. to retain each Bond Year as defined in the Cooperative Agreement from the amounts paid to the Trustee pursuant to division (f)(1) of this section to secure payments with respect to the Arena Bonds as provided in the Cooperative Agreement, an amount up to the sum of: (a) three percent (3%) of all admissions charges for admissions to the Gateway Arena during the related Collection Year as provided in the Cooperative Agreement for: basketball games played by the Cleveland Cavaliers at the Gateway Arena during each basketball season (including divisional, conference and championship play-off games); pre-season or exhibition basketball games played by said Cavaliers at the Gateway Arena and the NBA All-Star Game and any other event held at The Gateway Arena in which professional basketball players participate (collectively, "Games"), plus (b) in the event that the City increases the taxes payable under this Chapter from 6% to a higher rate, the percentage equal to such increase times all admissions charges for all admissions during such Collection Year to the Gateway Arena for Games, and plus (c) in the event that the City increases the taxes payable under this Chapter from 6% to a higher rate, the percentage equal to such increase times all admissions charges for all admissions during such Collection Year to the Gateway Arena for any events other than Games.
B. to release and pay to the City at the end of each Bond Year any of such amount described in division (f)(2)(A) above not used or needed for such purpose during such Bond Year, together with any investment income earned thereon, and
C. to pay any such amounts in excess the amount described in division (f)(2)(A) above directly to the City at the end of each Bond Year, together with any investment income earned thereon.
(3) Gateway shall prepare and submit to the Director of Finance of the City and the Clerk of City Council, or cause the preparation and submission to the Director of Finance of the City and the Clerk of City Council of, such returns and reports regarding the amounts paid to the Trustee pursuant to division (f)(1) of this section as the Directors of Law and Finance shall reasonably require to demonstrate Gateway's compliance with this section.
(4) Gateway shall agree to repay or cause to be repaid to the City from Gateway's future excess revenues any moneys paid to the Trustee pursuant to division (f)(2)(A) of this section actually applied to the payments with respect to the Arena Bonds with interest and on such other terms and in such form as are consistent with Gateway's obligations under the trust indentures and related agreements securing Gateway's bonds and the Arena Bonds and as the City's Director of Finance and Director of Law deem acceptable in the interests of the City.
(5) Gateway shall make or cause to be made such other assurances and commitments as the City's Director of Finance and Director of Law deem necessary, and appropriate to protect the City's entitlements under this division (f) and provide copies of such other assurances and commitments to the Clerk of the Council.
(Ord. No. 324-92. Passed 2-24-92, eff. 3-2-92)
Note: Pursuant to Section 2 of Ord. No. 324-92, Codified Ordinance 195.03 is not effective, and the prior Section 195.03 is not repealed, until the following three (3) conditions are met: (a) Gateway has executed and delivered to the Clerk of Council for deposit into File No. 324-92-A, a resolution of its board of directors confirming that the payments in lieu of admissions taxes described in Section 1 are no longer required by Gateway as security for Gateway's Stadium Revenue Bonds, Series 1990; (b) the County has executed and delivered to the Clerk of Council, for deposit into the above-mentioned file, a resolution confirming that the Arena Bonds have been issued and are currently outstanding; and (c) the Clerk of Council has deposited into the above-mentioned file a statement of the effective date of repeal, which date shall be based on the submissions described in divisions (a) and (b) of this Section 2.
Every person receiving any payment on which a tax is levied under this chapter shall collect the amount of the tax imposed from the person making the admission payment. The tax required to be collected under this chapter shall be deemed to be held in trust by the person required to collect the same until paid to the Commissioner of Assessments and Licenses as herein provided. Any person required to collect the tax imposed under this chapter who fails to collect the same, or having collected the same, fails to remit the same to the Commissioner in the manner prescribed by this chapter, whether such failure is the result of his own act or the result of acts or conditions beyond his control, shall nevertheless be personally liable to the City for the amount of such tax, and shall, unless the remittance is made as herein required, be guilty of a violation of this chapter. The tax imposed hereunder shall be collected at the time the admission charge is paid by the person seeking admission to any place and shall be reported and remitted by the person receiving the tax to the Commissioner in monthly installments and remittances therefor on or before the thirtieth day of the month next succeeding the end of the monthly period in which the tax is collected or received. Payment or remittance of the tax collected may be made by check, unless payment or remittance is otherwise required by the Commissioner, but payment by check shall not relieve the person collecting the tax from liability for payment and remittance of the tax to the Commissioner, unless the check is honored and is in the full and correct amount. The person receiving any payment for admissions shall make out a return upon such forms and set forth such information as the Commissioner may require, showing the amount of the tax upon admissions for which he is liable for the preceding monthly period, and shall sign and transmit the same to the Commissioner with a remittance for the amount. However, the Commissioner may in his discretion require verified annual returns from any person receiving admission payments setting forth such additional information as he may deem necessary to determine correctly the amount of tax collected and payable. Whenever any theater, circus, show, exhibition, entertainment or amusement 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 Commissioner shall be the judge, the Commissioner may require the report and remittance of the admission tax immediately upon the collection of the same, at the conclusion of the performance or exhibition, or at the conclusion of the series of performances or exhibitions or at such other times as the Commissioner shall determine. Failure to comply with any requirement of the Commissioner as to report and remittance of the tax shall be a violation of this chapter. The books, records and accounts of any person 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 Commissioner. If the tax imposed by this chapter is not paid when due there shall be added as part of the tax interest at the rate of one and one-half percent (1 1/2%) per month from the time when the tax became due until paid.
(Ord. No. 284-91. Passed 3-4-91, eff. 3-4-91)
Note: Pursuant to Section 1 of Ord. No. 284-91, Section 195.04 shall take effect April 1, 1991.
Any person conducting or operating any place for entrance to which an admission charge is made shall, on a form prescribed by the Commissioner of Assessments and Licenses, make application to and procure from the Commissioner a certificate of registration, the fee for which shall be ten dollars ($10.00). The certificate shall be valid until December 31 of the year in which it is issued. Such certificate of registration, or duplicate original copies to be issued by the Commissioner without additional charge, shall be posted in a conspicuous place in each ticket or box office where tickets of admission are sold.
(Ord. No. 2393-02. Passed 2-3-03, eff. 2-3-03)
Whenever a certificate of registration is obtained for the purpose of operating or conducting a temporary or transitory amusement, entertainment or exhibition by persons who are not the owners, lessees or custodians of the building, lots or place where the amusement is to be conducted, the tax imposed by this chapter shall be reported and remitted as provided in Section 195.04 by the owner, lessee or custodian, unless paid by the person conducting the place. The applicant for a certificate of registration for such purpose shall furnish with the application the name and address of the owner, lessee or custodian of the premises upon which the amusement is to be conducted. Such owner, lessee or custodian shall be notified by the Commissioner of the issuance of such certificate and the joint liability for collection and remittance of such tax. The applicant for a certificate of registration for the purpose of operating or conducting a temporary or transitory amusement, entertainment or exhibition shall also pay a deposit in the amount of fifteen dollars ($15.00) as prepayment of the tax levied and imposed pursuant to this chapter. Upon filing of the return as specified in Section 195.04 for the payment of such tax, the deposit shall be credited to the amount of tax due and owing and the remainder, if any, shall be refunded to the person filing the return.
(Ord. No. 284-91. Passed 3-4-91, eff. 3-4-91)
Note: Pursuant to Section 1 of Ord. No. 284-91, Section 195.06 shall take effect April 1, 1991.
The Commissioner of Assessments and Licenses shall have power to adopt rules and regulations not inconsistent with the terms of this chapter for carrying out and enforcing the payment, collection and remittance of the tax herein levied. A copy of such rules and regulations shall be published in the City Record at least once before they become effective. Copies shall be printed and made available in the office of the Commissioner. Failure or refusal to comply with any such rules and regulations shall be deemed a violation of this chapter.
Until such time as rules and regulations are promulgated under this section, the rules and regulations of the State Department of Taxation relating to admission taxes in effect on August 31, 1947, except as the same may conflict with the provisions of this chapter, shall be deemed to be the rules and regulations hereunder.
(Ord. No. 1619A-47. Passed 9-22-47, eff. 9-27-47)
The tax levied and imposed pursuant to this chapter shall be collected and paid on and after April 1, 1991.
(Ord. No. 284-91. Passed 3-4-91, eff. 3-4-91)
Note: Pursuant to Section 1 of Ord. No. 284-91, Section 195.08 shall take effect April 1, 1991.
Appeals from any ruling of the Commissioner of Assessments and Licenses hereunder shall be made to the Board of Appeals established pursuant to Charter Section 76-6 in the same manner as other appeals to the Board. The Board shall have authority to annul, modify or affirm any such ruling appealed from, in conformity with the intent and purpose of this chapter.
(Ord. No. 1619A-47. Passed 9-22-47, eff. 9-27-47)
All returns and information relating to the business of any person required to collect the tax imposed by this chapter and coming into the possession of the Commissioner of Assessments and Licenses, his agents and employees shall be held confidential. No disclosures thereof shall be made unless ordered by a court of competent jurisdiction excepting, however, the Commissioner may furnish the Bureau of Internal Revenue, Treasury Department, of the United States with copies of returns filed.
(Ord. No. 1619A-47. Passed 9-22-47, eff. 9-27-47)
(a) Whoever, being a person charged by this chapter with the duty of collecting or paying the taxes imposed by this chapter, willfully fails or refuses to charge and collect or to pay such taxes, or to make return to the Commissioner of Assessments and Licenses as required by this chapter, or to permit the Commissioner or his duly authorized agent, to examine his books and other records, in or upon any premises where the same are kept, to the extent necessary to verify any return made or to ascertain and assess the tax imposed by this chapter if no return was made, or to maintain and keep for three years or such lesser or greater time as may be permitted or required by the Commissioner, shall be fined not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100.00), and for a second or other subsequent offense shall, if a corporation, be fined not less than one hundred dollars ($100.00) nor more than five hundred dollars ($500.00), or, if an individual or member of a partnership, firm or association, be fined not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100.00) or imprisoned not more than sixty days, or both.
(b) Whoever violates Section 195.10 shall be fined not more than five hundred dollars ($500.00) or imprisoned not more than thirty days, or both, for each violation, and shall thereafter be disqualified from acting in any official capacity in connection with the assessment or collection of taxes under this chapter.
(Ord. No. 1619A-47. Passed 9-22-47, eff. 9-27-47)
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