City Club Tax Rollback May Not Happen
posted by October 28 at 17:27 PMon
Musicians and club owners are starting to fret that a proposed rollback of the five-percent tax on ticket sales for small venues may be the next victim of city council budget cuts.
Earlier this year, Seattle Mayor Greg Nickels proposed rolling back the tax, which brings about $300,000 in revenues to the city every year, for venues that hold fewer than 1,000 people; regular show live music; and have a clean legal record. In theory, the tax cut would create a friendlier atmosphere for nightlife and put more money in musicians’ pockets; according to nightlife lobbyist Tim Hatley, the money “all goes back to the musicians, because everybody gets their cut of the door.” He adds, “Five percent may not seem like a lot, but every little bit helps.”
However, with critical direct services to homeless people, low-income residents, kids, and the elderly facing potential budget cuts, some council sources say it’s hard to justify a giveaway to clubs. The council’s budget deliberations will continue through November.