On February 10, many of the local Cleveland venues will be banding together to get the word out about how admissions tax is harming local businesses. Now That’s Class, Beachland, Brother’s Lounge, Happy Dog, Peabody’s, Rockstar, Rocbar and the Garage Bar are all holding special concerts to help promote this unifying cause. EXEMPT SMALL VENUES FROM CLEVELAND’S 8% ADMISSIONS TAX Cleveland’s admissions tax is high relative to other cities Cleveland increased admissions taxes twice in the last 25 years to fund sports stadium-related construction. Neighboring suburbs have much lower rates or no tax at all. Other big cities have lower tax rates, and many have specifically exempted small live music venues. Small venues cannot afford the city’s 8% admissions tax Small venues pay musicians more money than the venues collect in ticket sales or cover charges. Because the admissions tax is based on tickets sold, not profits generated on ticket sales, it compounds the losses clubs take on booking music. Small venues account for less than 1% of admissions taxes annually Small venues account for less than $100,000 in admissions tax revenue a year. The city collects $15 million a year in admissions taxes, small venues account for less than 1% of total admissions taxes. The tax hurts local musicians & causes national acts to skip Cleveland The tax takes money out of the pockets of local musicians and deprives them of opportunities to perform locally. The tax also puts clubs at a disadvantage to venues in other cities in attracting national touring acts, depriving music fans of the opportunity to see those acts. Small venues contribute to the economic and cultural life of the city Small venues create jobs and contribute significant revenues to the city in the form of payroll, sales, property and sin taxes, license fees and assessments. Small venues have vendor relationships with dozens of local businesses, and serve as anchors in neighborhood revitalization efforts, attracting people to neighborhoods and attracting other businesses to open to serve the influx of new customers and residents.