City cracks down on admissions tax

The Spokane City Council on Monday approved an ordinance that would make it easier for the city to collect its 5 percent admissions tax.

The new law, approved on a 6-1 vote, would make owners and lessees responsible along with event organizers to pay the tax. The tax is typically collected as part of the ticket price of a concert, movie or other event.

The problem is that when promoters skip out on paying the tax, the city is left empty-handed. The law lets the city also go after the people running the facility and sponsoring an event.

Council members approved an exemption for venues with capacities of fewer than 200 people after organizers of small concerts said the admissions tax would hamper their ability to put on shows with younger, newer music groups. The exemption would apply only if the ticket price or cover charge were less than $10.

Councilman Bob Apple, who cast the only no vote, had argued that the capacity exemption should be larger. He previously said that the cost of collecting the tax would offset any gain.

Owners and lessees also could avoid liability for the tax if they notify the city treasurer five days before an event with the name and contact information of the promoter, allowing the city to collect the tax directly from the promoter.

Carlton Oakes, executive director of the Spokane Masonic Center downtown, said the notification requirement would add more regulation without enough justification. “I don’t think it’s being fair to me,” he said.

Molly Olson, who puts on shows for new bands, said the law will make it harder to showcase emerging talent. “It’s affecting the youth music scene in Spokane,” she said.

Nonprofits are exempt for their first $20,000 in annual admissions revenue. Also, nonprofit arts organizations are exempt from the admissions tax.

City Treasurer Ellen Dolan sought the change because some events were not paying the admissions tax. About $32,000 a year was being lost through nonpayments.

SpokAnimal contract extended four months

In other business, the council approved a four-month extension of its contract with SpokAnimal CARE to provide animal control services at a cost of $38,000 a month, which is more than twice the amount paid over the past year. The mayor’s office was seeking a 13-month extension, but the council shortened it to four months to prod the mayor’s staff to come up with alternatives for animal control.

The council also approved a state-mandated update of its five-year-old comprehensive land-use plan that seeks to contain and manage urban sprawl.