Ticket tax in Canton on the horizon as City Council is ready to vote on admissions fee

CANTON – City Council members are expected to vote tonight on whether to impose a citywide admissions tax on certain tickets for events and venues.

Which admission charges may be taxed?

Tickets for a Canton Ballet performance? Yes.

McKinley High School season football tickets? No.

A round of golf at the Quarry Golf Club or Meadowlake Golf and Swim? Yes.

Virtual golf at Hupp Gulf or The 19th Hole? No.

Entry to the Stark County Fair? No.

Entry to the prime-time tractor pulls and demolition derbies during the Stark County Fair? Yes.

As The Canton Repository reported in July , city leaders have been discussing the 3% citywide admissions tax to generate money for economic development.

They believe the city should capitalize on the influx of visitors who come to Canton for the Pro Football Hall of Fame, Hall of Fame Village, Canton Memorial Civic Center and other art and entertainment events. They note that more than 70 other Ohio cities and villages have levied an admission tax, with most of them at the 3% rate.

But when the tax was first introduced in July, the criteria of which admission charges would be taxed was not well defined, and leaders have spent the past few months refining exemptions.

If council approves the legislation tonight, the tax would begin Jan. 1.

The council meeting starts at 7 p.m. in Canton City Hall at 218 Cleveland Ave. SW.

Which admission charges would be taxed in Canton?

If approved, the 3% admissions tax would be added to any entrance or admission charge for events and venues in Canton unless they fall under one of the exceptions:

• The admission charge is $10 or less. The Stark County Fair’s $8 admission fee would be exempt.
• The live entertainment venue has an occupancy capacity of 150 or fewer . Hupp Gulf and The 19th Hole each accommodate less than 150 people.
• The admission fee solely benefits a public school district in Canton (such as McKinley football tickets), people in the military, members of the police or fire departments or a government entity. Admission charges for private schools would be taxed.
• The admission fee solely benefits a religious, educational or charitable organization that has received an exemption approval by the city treasurer. While the Pro Football Hall of Fame is a nonprofit organization, the legislation specifically states that admission charges at places operated by the Hall of Fame or its affiliates would be taxed.

The tax would apply to online ticket sales. It also applies to commercial parking lots and garages that charge a fee for parking. On-street parking and publicly owned parking would be exempt.

In two of Canton’s tourism development districts, the 3% admission tax would be added to the existing 5% admissions tax. The two districts include Centennial Plaza and the Renkert Building at 306 Market Ave. N and the Hall of Fame Village.

Canton Economic Development Director Christopher Hardesty acknowledges that some gray areas exist, such as charter schools, which are nonprofit organizations operated by for-profit companies.

He said organizations and venues that believe they should be exempt would be given the option to complete a form with the city treasurer’s office to get a determination.

“Our intent isn’t to be a hammer with the admission tax,” he said.

Where would the admission tax revenue go?

If the admissions tax is approved, a $25 ticket to see a concert in Canton would cost $25.75.

A round of 18 holes of golf with a cart at Meadowlake would increase from $34 to $35.02 with the added tax.

Hardesty estimates the city could receive between $500,000 to $750,000 a year.

According to the proposed legislation, the money will be placed in a separate admissions/parking tax fund to be used to support government operations, tourism development, economic development and infrastructure improvement and development throughout the city.

The city treasurer’s office also will retain 1% of the revenue to cover administration costs.

Hardesty said no new employees would be hired to help with administering and enforcing the tax collections, but he said employees could be hired in the future.

What do Canton business owners say?

While the city consulted with some of the larger venues that would be affected by the tax, many other city business owners likely are not aware of it.

Meadowlake President Phil Barr, who was surprised to learn about council's planned vote, opposes the proposed tax. He said businesses and patrons already are burdened with added costs, such as sales taxes and high credit card fees.

“We don’t grow money on trees out here,” he said. “… We try to keep our greens fees reasonable to make it affordable for people to come out and enjoy golfing. This is just something else they would have to bear.”

He said the tax also would add another layer of administrative duties to his employees who already must track various taxes to send to the state.

It also would impact local residents, not the visitors that the city is trying to target, he said.

“People aren’t coming here out of town to go golfing at our courses,” Barr said. “We cater more to the local community.”

Georgia Paxos, executive director of the Canton Palace Theatre, previously told the Repository that a ticket tax is not an unusual occurrence, as many cities already have them established.

“We support the efforts of the city to strengthen the arts and entertainment venues in our city,” she said.

Reach Canton Repository staff writer Kelli Weir at 330-580-8339 or kelli.weir@cantonrep.com .

This article originally appeared on The Repository: Ticket tax in Canton on the horizon as City Council is ready to vote on admissions fee