Monday, October 17, 2011

Cleveland Considers Dropping 8% Admission Tax on Small Clubs

People have wondered for years, why Cleveland's strong music heritage, central location, affordable living costs and Rock and Roll Hall of Fame hasn't spawned a healthier music club scene.

Cleveland's 8% across the board admission tax might be a big factor.

From The Cleveland Plain Dealer

"The charge became an issue earlier this year after the city started hounding club owners to pay back taxes. The legislation would require owners to clean up those debts before receiving the exemption.

The Beachland Ballroom, in the Waterloo area, would squeeze in just under the law's cap. Owner Cindy Barber said in an interview last summer that she was under order to pay $400,000 -- three years' worth of taxes plus interest"

Four city council members are proposing dropping this tax for smaller clubs. As the article states, these are usually not the most profitable businesses to run.

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