Cleveland City Council voted 19-0 to roll back the admissions tax on live music venues. The new law states:
- Clubs that hold less than 150 people will be exempt
- Music clubs holding between 150 to 750 will now pay a reduced rate of 4%
- Larger venues will continue to pay tax at 8%
In February, five local clubs held performances by local artists as part of their “Defend Music Night,” an event whose efforts went toward lowering the 8% tax for affected venues. The 8% tax, one of the nation’s highest, has now been reduced or eliminated and small club owners are claiming victory.
The Beachland Ballroom was one of the affected clubs that asked their supporters to contact Mayor Frank Jackson and City Council to repeal the tax. They were reported to owe $400,000 in back taxes plus penalties and interest. The City has yet to comment on the effect this law will have on club owners who owe back taxes.
For more information on the reduction in Cleveland admission taxes on music clubs please leave a comment below, or contact one of our Tax Planning & Preparation professionals by calling 440-449-6800.