City of Harrisburg Amusement Tax Reform
Are you familiar with the City of Harrisburg’s Amusement Tax?
In a nutshell, The City demands ten percent of the gross receipts of any business or event that charges a cover at the door or sells tickets to an event. (Roundtable Presents, Dragonfly Nightclub, The Hardware Bar and even the Midtown Cinema are subject to this tax)
Unless the event is put on by a non-profit- then the event is exempt. The Whitaker Center is a non-profit. Although they have events that weekly gross more than Roundtable’s annual revenues, they are exempt from the tax.
On this page, I’ll be documenting my journey through the administration and legal system of The City of Harrisburg- in an effort to get this tax reformed. .
You’ll find information about how the tax negatively affects local concert promoters, hotels, bars and restaurants within The City.
All we want is a level playing field…
More to come…
The following is a copy of the actual Amusement Tax Law- in its’ current incarnation…
5-709.1 DEFINITIONS
(a) “AMUSEMENT” means all manner or form of entertainment, diversion, sport, pastime, or recreation within the City, except that the term shall not include actual participation in any intramural, interscholastic or intercollegiate sport, athletic game or contest. For the purpose of this chapter, the term shall include trade shows, craft shows and similar exhibitions.
(b) “PRICE” means the full monetary charge of any character whatever, including contributions and donations, fixed or exacted, or in any manner received, except that the term shall not include any tax added or any charge expressed, subject to the Tax Act of 1963 for education or such other tax or fee imposed by the Commonwealth of Pennsylvania, nor any membership fees or dues paid to any club or organization. (Ord. 32-1982.)
5-709.2 IMPOSITION OF TAX
A tax is hereby imposed for general revenue purposes at the rate of five percent (5%) of the price of admission to each and every amusement within the City for which the individual price is fifty cents ($.50) or more. (Ord. 32-1982.)
5-709.3 RATE OF TAX
(a) Where the price is fixed or established, the tax shall be collected on each admission of fifty cents ($.50) or more according to the following table:
Price Tax
$.50 to $ .61 - $.03
.62 to $ .81 - .04
.82 to $1.00 - .05
If the price is more than one dollar ($1.00), five per cent (5%) of each dollar ($1.00) of price plus the following charges upon any fractional part of a dollar shall be collected:
Price Tax
$.01 to $ .10 - $.00
.11 to .21 - .01
.22 to .41 - .02
.42 to .61 - .03
.62 to .81 - .04
.82 to 1.00 - .05
(b) Where the price is not fixed or established, the tax shall be collected based upon the gross admissions collected.
(c) Where the price of admission is wholly or in part included in the price of refreshments, service or merchandise or where purchase of such refreshments, service or merchandise is required as a condition for admission, the taxable price shall be deemed to be fifty per cent (50%) of the price paid for refreshment, service and merchandise. (Ord. 32-1982.)
5-709.4 EXEMPTIONS
The tax imposed by this chapter shall not apply to any form of entertainment, regardless of the nature thereof, where the proceeds therefrom, after the payment of reasonable expense, inure exclusively to the benefit of any charitable organization, non-profit educational institution or religious or fraternal organization. (Ord. 32-1982.)
5-709.5 PERMITS
(a) Any person desiring to conduct or to continue to conduct any amusement, the price of which is subject to tax under this chapter, shall file with the Tax Enforcement Administrator of the City an application for either an annual amusement permit or a temporary amusement permit, as the case may be. In the case of any amusement that is to continue for longer than ten (10) days, an annual amusement permit shall be issued. In the case of any amusement that is to continue for ten days or less, a temporary permit shall be issued.
(b) Permit applications shall include the following requests for information:
(A) the proper name and address of the person conducting the amusement;
(B) the type of permit being applied for;
(C) the location of the amusement covered by the permit;
(D) the price or prices charged or to be charged;
(E) the approximate total receipts anticipated; and
(F) the names and addresses of all persons conducting the amusement.
(c) If the application is filed by a corporation, it shall be signed by two officers. If the application is filed by a partnership, association or joint venture, the application shall be signed by all partners and members.
(d) Upon receipt of a properly completed and executed application, the Tax Enforcement Administrator shall issue the applicable permit, which shall be in such form as the Business Administrator or designee shall determine. (Ord. 32-1982.)
5-709.6 PAYMENT; REPORTS
(a) Every holder of a temporary permit shall, at the conclusion of the event but not less than every five (5) days, pay over to the Treasurer of the City the amount of tax due from such person under this chapter upon the admissions for such day or days and at the same time shall submit to the Treasurer a report of the total admissions charged and/or collected on such day or days and the total amount of tax due on such admissions. On the day of expiration of such temporary permit, the person(s) holding the certificate shall, in addition, submit a report, under oath or affirmation, of all admissions charged or collected during the period in which such temporary permit was in effect and of all taxes due and paid.
(b) Every holder of any annual permit shall, on or before the tenth (10th) day of each month, pay over to the Treasurer of the City the amount of tax due under this chapter upon admissions for the preceding month and at the same time shall submit to the Treasurer a report of the total taxable admissions charged or collected during such month and the total of the tax due on such admissions. (Ord. 32-1982.)
5-709.7 COLLECTION OF UNPAID TAXES
All taxes imposed hereunder, together with all penalties, shall be recoverable by the City as other debts of like amount are recovered. (Ord. 32-1982.)
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