HomeMy WebLinkAbout2002 Ordinance No. 010•
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ORDINANCE NO. iJ2.
SERIE S OF 20 02
BY AUTHORITY
COUNC IL BI LL NO . 3
I NT RODUCE D BY COUNC IL
MEMBER GRAZL'LIS
AN ORDINANCE AUTHORIZING THE TEMPORARY ADMISSIONS TAX
RED UCT IO N FOR A TW O YEAR PERIOD .
WHEREAS , til e Ci t;· of Englewood established an Admissions Tax wit h the
passage of Ordinauce No. 5 l, Series of 19 76: a nd
WHEREAS , the Alli ance for Comme rce in Engl ewood (ACE) reco mmended
e limination of the three percent (3 %) City Ad missh.ms Tax. on those busi nesses that
charge adm1ss 1on purs uant to Ord in ance No . 5 1, 19 iG; and
WHEREAS, ACE supports the deve lopme nt of a diver.ificd bu sin ess mix, including
the a dditio n of businessea tha t charge ad mi ssion for e ntertainme nt a nd other public
e vents that ex-pa nd co mm ercia l activities in Englewood; and
WHEREAS, ACE understands the City's goa l to dive rsify the revenue ba se; a nd
WHEREAS , a more diversified bu sin ess mix will enhance the current revenue
streaw und may -:reate oppo rtunities for dive rsifi ed revenues: a nd
WHEREAS , the current Admissions Tax may present a disincentive for those highly
sought nfte r bu s inesses; and
WHEREAS, in the ti ght metro market, regulatory and bu siness climate issues s uch
as tnxes ca n be a determining factor in site selection: a nd
WHEREAS, a temporary Admissions Tax reduction to 0% for two yea rs may help
diversify the tax base;
NOW, THEREFORE , BE IT ORn ••JNED BY THE CITY COUNC IL OF THE CITY OF
ENG LEW OOD . CO LORAD<:;, AS FOLLOWS :
Se=n...l. The City Counci l of the City of Englewood, Co lorado hereby a utho rizes
and a pproves a te mporary City Admissions Tnx rcductioa to 0% for n two-year period
and at the e nd o f those two years the City Admissions Ta>: would be reviewed to
determine reinstatem e nt or elimination.
On January 7, 2002 fir st reading was co nt inu ed until February 4, 2002.
On Feb ruary 4, 2002 fir s t rea ding was co nti nu ed until Fe'.1 ruary 19, 2002.
Introduced, read in fu ll a nd passed on fir st rending on th e 19th day of February ,
2002 .
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Published as a Bill for an Ordinance on the 22nd day of February, 2002 .
Read by title and passed on final reading on the 4" day of March, 2002.
Published by title as Ordinance No. /12 Series of 2002, on the 8th day of March,
2002 .
I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify
that the above am foregoing is a true copy,Slfthe Ordinance p sed on final reading
and published by t 'tie as Ordinance No . /f,!, Series of 200
Loucrishia A. Ellis
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COUNCIL COMMUNICATION
Date
Feb ru ary 19, 2002 I
Agenda Item I Subject
11 a ii Th ree Perce nt
Admiss ions Tax
INITIATED BY
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STAFF SOURCE
Alliance fo r Co mm erce in Englewood (A CE ) JJn Johns on, Co mm uni ty Development
COUNCIL GOAL AND PREV IOUS COUNC IL ACT!CN
• Goa l: Business Deve lopment
• Prev ious Act ion: Crea tio n of Ordinan ce 51, Se ries of 1976 -Admissio ns Tax
RECOMMENDED ACTION
Al the ACE m ee tin g on Feb rua ry 14, ACE considered the recen t Co un ci l co unter proposa l. After
discu ss ion, ACE rei terat ed th at th e in itial compromise mo re clearly ad dr esse d th e iss ue of
dis in ce ntive crea ted by the Adm;ssi o ns Tax ar,d rejected the 1% -2% -3% co unter-propos al In
additio n, ACE beli eves th ere are indirect benefits to th e City suc h as when o th er businesses rel oca te
here IC' be part of th e Engl ewood enre ~ainment communi ty.
ACE continues support fo r a tempora ry tlX re duction fo r two yea rs. During th e two yea rs , th e
Admissions Tax would be 0%. At th e en d o f two yea rs , th e Admissions Tax would be rev iewed to
determin e rei nstatement or eliminat ion. Evaluation o f cos ts and benefits to both City and busines s
sho uld be cons idered at th at tim e.
BACKGROUND, ANALYSIS, AND ALTERNATIVES ID ENTIFIED
The Alli ance for Com m erce in Eng lewood (AC E) initiall v recomm end ed elir, rinati o n of the thre e
pe rce nt (3%) City Ad miss io ns Tax o n th ose busine ss es tha t c~arg e admission pursuant to
O rdinan ce 5 1, Series 1976 . At th eir Dece mber 13, 200 1 meetin g howeve r, ACE co ncurred with
the co mp :omise pos iti o n put fo rt h by CD sta ff, City Finan ce Di recto r and City Attorney that ca lls fo r
;\ t\vo yea r temp orary redu cti on to 0°/+,, followed by rE,iew fo r elim ina ti on or reinstatement.
O ri gina ll y sc heduled for first rea din g of th e draft ordinance January 7, 2002, th e initiative was
brought bac k to Stud y Sess io n un Janu ary 22 , WOl fo r add iti onal ques ti o ns. Schedul ed fo r fi rst
readin g o n Feb ru ary 4, a co unter proposal emerged from St udy Sessio n and th e fi rst readin g wes
pulled . Th e counter proposal ca ll ed fo r a redu cti o n of Admissions Tax to 1% in the yea r on e, 2% in
ye ar two and return to 3% in yea r thr ee . Th e res t of this rer,o rt is prov ided as ba ckgro und. No new
additi o nal information is incl ud ed.
ACF. dis cussions have foc used on th e current bus iness climate in Englewood, as well as barri ers and
opp onuniti es for futur e co mm ercial ac ti vi ti es . While tak in g a broa d overv ie w of the cu rren t
bu !.i ness clima te, th e current City Admissions Tax has co me und er st ud y for its impact on cu rrent
re gio nal draw bu si nes ses that provide en tertainm ent This tax ha:. a nega ti ve impa ct for retenti on
efforts . This tax ca n also be viewed as a di !;i nce ntiv e in efforts to attract new businesse::, tO
Eng lewood.
As th e City pursues both publi c and private redevelopmen t opportun iti es, venues •ha t provide •
ente rt ainment, including resta urants & bars th at may have a cove r char ge, movie th ~a tres, co nce rts,
live perform ances and sporting eve nts are encouraged. Many of th ese ty pes of bu sin esses were
highlighted in th e Englewood Sourh Broadway Co rr ido r Ma rker Srudy (Augusr 2000 ) as areas of re•ail
leakage and vo id (page 24-25 and Table 11I-J A are att ac hed).
ACE supporrs th e deve lopm ent of a diversifi ed bu sine ss mi ,, including th e addition of business es
th at charge ad miss io n fo r enterta inm ent and othe r public eve nts th at expand commerci al ac ti vi ti es
in Englewood. Pl ea se note that ACE member Ste ve Schalk abstained from an y vo te on thi s topi c
due to owners hip of th e Gothi c Th eatre and th e confli ct of interes t inh erent in th e topic. In
add iti on, ACE unde,-;tands th e City's goal to diversify th e revenu e base . A more dive rsified business
mix w ill enhance th e curren t reve nu e strea m and ma y crea te opport un iti es fo r diversified revenues .
The current Admissions Tax may prese nt a disin centive fo r th ose hi ghly so ugh t after businesses. In
th e ti ght rnet ro marke t, reg ulatory and busi ness cli mate Iss ues such as taxes can be a determining
fac tor in si te select ion.
71,e advancement of en tertainm ent opportuniti es w ill stimul ate th e influx of spin-off bus in esses . For
exa mple, an exci tin g cultural attraction will genera te more reven ue-b ase d bus i ness in the for m of
taxa bl e sa les from restaurants , sp ec ialty shops and o thers rel ated business es. Th e growth of
children entertainm ent facilities w ill stimulate th e deve lo pm ent of •o y st ores, children's clothing and
oth er pla y fac ilities .
In th e ca se of th e Go thi c Th ea tre, the Engl ewood regi o nal draw must directly compete wi th •
D enve r metro venu es (th e O gden, Fillm o re and Blu e Bird Th ea tres ) that do nor charge Admission s
Tax, all owing fo r an improved pri ce differential in D enve r. D enver currently coll ects Admissions
Tax on ve nu es owned by Denve r. Beca use Denver is co nsid ered th e mos t direct co mp etition
within th e ex tremely narrow bu siness fie ld, the Admissions Tax creates an "unl evel playin3 f:e ld"
for Engl ewood business. Repeal of the tax would rec ti fy th e in equity in competition .
FINANCIAL IMPACT
During 2000, th e total Admissions Tax collected was $23 ,1 16 . This amount reflected 0.07% of the
to tal re ve nu es of th e City of Englewood. From 19~8-pre se nt, the re ve nues from ad m issio n tax has
neve r accounted fo r mo re th an 0. I 2% o f the total reve nues .
Eliminat ion of this ta,, in th e short term, would cre ate a gap in reve nu es fo r the City ,:,fan es timated
$60,000 for th e two-yea r period. In Ie long term , however, it is an ti cii:,•ted th at this ga p would b~
replaced w ith increas•rl revenue thrc _g h increas ed alcohol sa les , food sales and other taxable
activitie s.
The incre mental r.o st fo r additi onal servic.es fo r entertainm ent bu ·,messes is an is sue fo r discussion.
The nee ds fo r sait?ty, sec uri ty, wa ter and street for en tert ainm ent busin es ses ire simil ar to oth er
Engl ewood busi nesses th at do not fa ll under the Admiss ions Tax. In additi on, th e Go thic Th eatre
pa ys for their securi ty needs through contra ct with a privat e company.
in th e curren t busia ess cli mate of Englewood, th e il"'lact of th e tax is two busin esses ou t of the
1800 bu sin ess es loca ted in Eng lewood. In addition, these two pa 1'.icula r businesses that charge
admissi on to provide entertai nment are among th e strongest regional draws for the City.
TI,e b ,nefl ts oi elimina tio n of the Acimiss ions Tax would impar: the two Eng lewood businesses that
are subject ro th e ,a,. se ndin g a srrong re tentio n message . In the long term , the benefit w ill be tbe
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• stronge r placem ent of Englewnod in metro wi de compelilion for entertainment businesses.
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ACE viewed the amount of revenu e generat ed by the lax as o utweighed by the pos si bl e
disincentive when competing against oth er communities fo r ent ertai nm ent businesses, including
restau ra nts th a t have .:ovPr charg es fo r ente rtainment.
The increas ed div e rsity of the busin ess community would provide more opportuniti es for additional
revenue-based businesse s, ind udi ng res taurants, specialty shops and oth er retail exp~ri ences.
Other alt ern ativ e5 id entified have includ~d th e ~ompromise that provides a tem~orary tax
redur tion to 0% fo r a pe riod of two years. Th is allows immediate relief from ~1e tax and may
provi de a tool fo r both retention and attracti o n ac tivities .
LIST OF ATTACHM~NTS
• Propos ed Bill for an Ordin ance
• Par;e 24-25 and Table lll -3A of th e Englewood Sou th Broadway Corridor Ma rke t Study, Augus~
2000
• Ordinance No. 5 1, Series of 1976
• Letter from Steve Schalk, owner of the Go th ic Th eatre
• Tab le 13, Admissio ns Tax fr om the Colorado Municipal League
TA111.EW•3
Sale cclledicns witt;in the Corridor rebounded by 13 percent between
1998 ard 1999, fcllow:ng a decline cf.more than 1 p,rcentbetween 1997
and 1 r 38 . Among the districla in the Corridor, Downtown has conlli$-
1an11y represented between 36 and 38 pen:ent of collections , fellowed by
81t>Okridge ~t approximately 30 pen:enl Cherrelyn at 22 percent and
Ga-y at 11 percent
.... !.auv, and '-"Id Analya,'9
To detennine the types of retail/service ca!Bgories for which there may be
unmet demand in the trade area, the consultant team a,nduc:led a void
analysis ol retaiVa,mmerciaJ ca!Bgorius for the South Broadway Trade
Area . Retail "leakage" is determiner, by analyzing the disparity between
actual retai sales within the r.1ar1<et area and annual household expend~
tures . If annual household expentlitures exceed l0lal retai sales, this
indicates that individuals are spending a portion of their money outside of
the immediate mar1cel This phen(lmenon is termed leakage . Conversely,
f annual household expenciilures are less than tctal reta i sales, this
indicates that the a,mmunity is bo!nefiting from expenditures mad :. by
persons visiting the trade area , or "importing" retai sales .
Table 111-3 ill ustrates a summ.,ry of the results of the void analysis by
broad retail categories , and quantifies the level of sales leakage/importing
related ID the trade area for major retail categories . The detailed analysis
~, pn,vided in Table 111-3A on the following page.
SUMMAJlY RETAniCOMMERCAL '/om ANALYSIS ($000s)
Soum l!aoAollAY COIUt!DOll l'luMAJtY TRADE All£A
C."90ry 19911 ~ E.q,ondbns Primoty T-Arn
Exiaing Squan: Feet (OOOs)
Builciq Mamills $39,411,20 1 36 ,750
Food SIOla S67,4S9,1l9 201 ,200
Aulamocive • 56,165,739 IOS ,000
Appanl S◄◄,Sll,757 2.S ,01i
Funiun SJS ,901 ,992 135,717
Eaiaa.tllrirma Sll,1"6,190 95,614 ~. $29,916,913 65,93 1
Miscell-S9,J93,l75 176,804
Alllr-mrbt.
Soun:c: CAO Urban Lud lmtioae: 1111<11.<11111<1 Coruulons Groop
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s--Squn Feet (000.)
1999-200◄
250,340
95,597
11 ,704
Zll,371
149,344
37,117
238,375
!Ji ll :-! !!l!!!l !!!!!!! ! !! !Ill • H Il l m ~' !ll!i!jj iP!W l n !il 'l!! I! Pl II Ii I iliilB lllllli I II 1111 . ) ~ \, 'I I !IL.Ill !! mmu mum II m 1m11 .. . ) :r'.1 -~·· 'II lj\ m !I mmH l'ilr!! !! m Ill!! I I I• at ,.,!
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Hi ~•i••,; is, I UH!U U!UH ! !!_. ... ~ l!_I_!,/. _' .,,
I :!·'·;/ .~ ... ,l . , I ~· : ;;-; ~-J~'•. lfl m I'! ,l !I !llllH i H!ii!l! H Ill II!! ! I
Jj !m !ll !! ll lliP j "l'. 111 ii ·1 1 1m11 1 ! -1 i ~ , j . ,a11, i • .. ~u :a . '
I
• il !III !ii II ~u•::H •1•11111 " lll •1•1 I \ 32
J J !!'! rn H liP U'i !i'Vi"l !! lli l!Bll IF!~!'! Il l 11 11:1; 1,1 i• II .. ,
I , r11• I i• l iil :! Ii! e;1 jj i!lilU! !i l!l =:10, t
11 fl m ··1 2t !i Ill•'"! Hall!! l!H «j! J l_!'H~ii
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l! m t ii " q~HP' ~'!i"&!i ll ill j!ll 'j I Ill ii I,!'" II if•~i!3 .. , a!l I
I jl ! ,. ~ I u ;~n•• ! ii iW l I I I u ii ~B I ,. i ' "d I
lj ' I! I ~! BW! . H ! 5 ~. ~ . " ' '
ij .. . -, -= ••• -. ,-.... ,.
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111 11 111 n1 11 11 ,l !11d 1H 1 1 11111 l l
!1 11lil, Jill 111 jldill 1j ll!l ,!1i J Ilj JIIJ jlfl l1 j l !!
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The ana ly sis indicates that tile tradt area could suppo rt add ibona l re ta il/
commercal space In severa l categories . Categor.es that appear lD offer
the greatest potential and wh ich may therefore be sui1able for Corridor
redevelopment efforts indude :
Food/DrinkAway from Home Q.e. restaurants)
Entertainment (i.e. movie theatres , book stcres . camera stores . etc.)
Miscel laneous Q.e. gift stores , pet shops , florists . etc.)
\Miile the Corridor is importing a sizable share of its auto-related reta il
sales from outs ide the Primary Trade Area , there are indications of
leakage for specific types of retai goods . Apparel & Accessories and
General Merchandise are two additional categories for wh ich leakage is
occurring . A relative lacl< of variety in reta il spa.:e with in the Corridor.
especially as compared to similar corridor; in the reg ion , is a ::a use of
th is leakage and indicates a potential mari<et niche for new reta il develop-
ment (See the Append ix for listing of potential retail opportunities with in
each of the identified opportunity categories .)
~ shown in Table 11 I-JA (Vuid Analysis), there are approximately 750 ,000
tc 1 mill ion square feet of retail/service space in the Broadway Cor.idor
with in the categories identified . The existing space conta ins a re latively
traditional mix of reta iUse rvice tenants-those found in most corridors and
older commP.rcial business centers . As growth in the mark.et 's residential
base continues . units tum over and transition . and the Corridor modifies
and improves its appearance : there will be increased demand for a greater
variety of stores . induding neighborhood-supporting uses . and enterta in-
ment Vl!!nues . Note: The res,dual demand estime/es a/9 for /li e trade
erea as a whole. Depending on /1111 positioning anc; niche strategy
pursued by /1111 City. Ille Comdorcan expecllo c 1p1.111 varying sllaf9s of
demand wftl1in Ille reta,Va,mmerr:ial calegory
A soon-to-be converted antique s/o,e
ne.<t to longllme South Bro;;d'Nay
Myan S Po 'Poum Antiques covld be
the start of a new Antique Row on
Englewood's South Broadway.
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INTRODUCED AS A BI LL BY COU!!CILMAN SMITH
BY AUTHORITY
ORDINANCE NO. 51 , SERIES OF :!.976
AN ORDINANCE AMENDING CHAPTER 2, TITLE IX, OF THE 1969
ENGLEWOOD MUNICIPAL CODE, BY ADDING A NEW ARTICLE III
THERET O, LEVYING AND FIXING AN EXCISE TAX IN THE AMOUNT
OF THREE (3 %) PERCENT ON THE PRICE PAID TO GAIN ADMISSION
TO ANY PLACE OR EVENT IN THE CITY, WHICH IS OPEN TO THE
PUBLIC; PROVIDING FOR THE PAYMENT AND COLLECTION OF SAID
TAX ; PRESCRIBING PENALTIES FOR THE VIOLATION OF THIS ORD-
INANCE; AND RENUMBERING THE SECTIONS CONTAINED UNDER ARTICLE
IV OF CHAPTER 2 OF SAID TITLE IX.
WHEREAS , the City Council finds and determines that
it is necessary to raise additional revenue; and
WHEREAS, the City Council is of the opinion that a
r easonable , just and proper manner in whi c h to raise this said
revenue,is by adopting an excise tax on the price paid to
gain admission to places and events in the City, which are
open t o members of the public .
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ENGLEWOOD, COLORADO, as follows:
Section 1.
That Chapter 2, Title IX, of the 1969 E.M.C . is hereby
amended rJ adopting a new Article III, to read as follows:
CHAPTER 2
AMUSEMENTS
ARTICLE III -ENGLEWOOD ADMISSIONS TAX
9-2 -31:
9-2 -]2:
9-2-33:
9-2-34:
9-2-35:
9-2-36:
9-2-37:
Legislative Intent
Excise Tax Based on Admissions
Defini tions
Place or Event Open to t he Public
Taxable Tr ansactions
Exempt Transactions
Refunds
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9-2-38:
9-2 -39:
9 -2-40:
9-2-41:
9-2-42 :
9 -2-43:
9-2 -44:
9-2-45:
9-2-46:
9-2-47:
J-2 -31:
Free or Complimentary Admissions,
Adm i ssions at Reduced Charges
City Owned Places and City Sponsored
Events
Liability, Licenses and Reporting Procedure
License Officer May Require Reports
Responsibility for Collection and Remittance
of Tax
Reporting Procedure
Interest and Penalties
City License Officer Empowered to Make Rules
and Regulations
Repeal of Conflicting Ordinances
Severability
LEGISLATIVE INTENT
It is hereby declared to be the legislative intent
of the City Council of the City of Englewood that on
and after the effective date of this ordinance, every
person who pays to gain admission t o any place or
eve ~, in the City, that is open to the public, shall
pay, and every person, whether owner , lessee or operator,
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who charges, or causes to be charged, admission to any •
such place or event,shall collect the tax imposed by
this Article.
9-2 -32: EXCISE TAX B.\SED ON ADMISSIONS
On and after the effective date of this ordinance,
there is hereby levied, and shall be paid and collected,
an excis~ tax of three {3%) percent on the price paid
t o gain a1missi,Jn to any place or event in the City,
which is open to the pub l ic. Said excise tax is i n
addition tc. a l l other t.,xes i mposed by la••.
9-2-33: DEFINITIONS
When not clearly othe n,i s ,a indicatlld by the context,
the following terms , words and phrases as used in this
Article, shall have the fol lowing meanings :
{a) Identification. The tax levied herein may
be identified as the "Englewood Admissio ns
1.'ax. 11
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(b) "City" means the City of Englewood, Colorado.
(c) "Article" means Article III, Sections 31 through
47, inclusive, Title IX, of the 1969 Englewood
Municipal Code, as amended.
(d) "License Officer" or "City License Officer",
shall mean the Director of Finance of the
City of Englewood, or his duly appointed
designee.
(e) 11 Person 11 means and includes any i ndividual,
firm, co-partnership, joint venture, corporation,
society, club, association, joint stock r.ompany,
estate, or trus L, receiver, trustee, assignee,
lessee, or any person acting in a f~duciary
or representative capacity, whether appointed
by court or otherwise, or any group or com-
bination acting as a unit, including the United
States of America, State of Colorado, and any
political sub-division thereof, in th~ plural
as well as the singular number.
9-2-34: PLACE OR EVENT OPEN TO THE PUBLIC
The term "place or event open to the public" . .means
any place or event , the admission or access of which
is open to members of the public upon payment of a
charge or fee . This term shall include by way of
illustration, but not by way of limitation, the following
places and events when a charge or fee for admission to
such places and events is placed upon members of the
public:
(a) Any performance of a mction picture,
stage show, play, concert, or other
manifestation of the performing arts.
(b) Any sporting or athletic contest,
exhibition or event, whether amate ur
or professional.
(c) Any lecture , rally, speech or dissertation.
(d) Any showing, display or exhibition of any
type, such as an art exhibition .
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(e) Any restaurant, tavern, lounge, bar or
club, whether the admission charge is
termed a "cover charge", "door charge",
or any other such term.
9-2-35: TAAABLE TRANSACTIONS
It shall be a violation of this Article for any
person who pays to gain admission to any place or
event in the City that is open to the public, to
fail to pay, or for any pers on, whether owner, lessee,
or ope:cator, who charges or causes to be charged
admiss ion to any place or event in the City that is
open to the public, to fail to collect the tax lev~ed
by this Ar ticle.
9-2-36: EXEMPT TRANSACTIONS
The following entities and transactions are
exempt from tte duty to ?ay, but not the duty to
collect, the tax levied by this Article:
(a) The United States Government and the State
of Colorado, its Departments and In3titutions,
and the political subdivisions th-,reof,
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includ1,,g the City o f Englewood, only i,, •
their governmental functions and activities.
(b) Religious, charitable and quasi-governmental
organizat i ons and corporations, only in the
conduct of their regular religi ous, charitable
and •-1ua.si-governmer,tal capacities.
In the event that an adm~ssion price is refunded
for any reason, either before or after an event has
taken place, the tax is not applicable and shall be
refunded along with the admission price .
9-2-38: FREE OR COMPLIMENTARY ADMISSIONS, ADMISSIONS
AT REDUCED CHARGES
The providing of free "passes ·', "complimentary"
admission tickets, or otherwise, where no admission
price is charged or paid, shall exer·pt said persor.
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from payment of the admission tax~ however, in the
event that a reduced charge for admission is made,
whether for a pass, complimentary aronission or other-
wise, the tax imposed in this Article s applicable
to the amount of such charge.
9-2-39: CITY OWNED PLACES AND CITY SP ONSORED EVENTS
The tax levied by this Artic le shall not apply to
any admission fee paid or charged t o gain entry into
any place owned by the City, or any event sponsored
or conducted by the City.
9-2-40: LIABILITY, LICENSES AND REPORTING PROCEDURE
The burden of proving that any transaction is not
sub~ect to the tax imposed herein, shall be upon the
person upon whom the duty to collect the tax is imposed
by Section 31 of this Article.
9-2-41: LICENSE OFFICER MAY REQUIRE REFOR~S
The City License Officer may require any person
to make such return, r e nder sue _, statement, or keep
and furnish such records as the said License Officer
may deem sufficient and reasonable to show whether or
not such person is liable under this Article for the
payment or collection of the tax imposed herein.
9 -2-42: RESPONSIBILITY FOR COLLECTION AND REMITTANCE
OF TAX
Every owner or operator,who charges or causes to
be charged admission to any place or event that is open
to the public, shall be liable for the collection and
remittance of the ta:< levied here i n . If a n owner or
operator of a fa c ility leases or ren ts such a facility
to another pa,:ty , which in turn s ;,onsors or conducts
some public event in ~uch facility, then such owner
or ooe rator shall be relieved of the liability of
collecting and rem i tting the cax,only i f the pa rty to
whom the facility is leased or rented is, at the time
o f such leasing or r e nta l, licensed t o colle ct and
remit the tax .
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9-2-43: REPORTIN G PROCEDURE.
Every owner, operator or . erson who has the duty
to collect the tax imposed in thi s Artic le, must
obtain, without charge, a license to collect the tax,
and must report on forms prescribed by the License
Officer such taxes, a nd remit to the •;ity the col-
lected taxes within the f o llowing time periods·
(a ) For regularly continuing or recurring e vents,
such as charging admission to motion picture
theaters, reports and remittances must be
filed with the Dire ctor on or before the
twentieth (~0th) day of the month for the
proceeding month or months under r eport.
(b) For single non-continu i ng or non-recurring
events, such as t he charging admission to
a single performance of a concert, reports
and remittances shall be due within five (5)
calendar days of the p e rformance or event,
unless s pecific arrangements are made in
advance with the City Li c e ns e Of fi cer.
9-2-44: INTEREST AND PENALTIES
!f remittances and reports are not received on
th~ 1ue dates specified in Section 43 o f this Article,
a pa~alty shall be imposed in the amount of ten (10%)
percent of the tax liability; and the total amount
due, including tax and penalty, shall bear interest
at the rate of one (1 %) percent per month, or a
fraction thereof until such reports and remittances
are received by t he Li c ense Officer.
9-2-45: CITY LICENSE OFFICER EMPOWERED TO MAKE
RULES AND REGULA'rIONS
The City Li cens e Officer is hereby authorized
to promulgate rules and r eg ulat ion s rega rding the
payment, collection, reporting, and accounting
criteria and periods, settlement o .f di s putes over
pa;·ment, refund ;ind enfo r cement of tax imposed bt
this Article. Said rules and r egul ,1t ions shall not
be inconsistent wic~ the provis ions of t h is Article .
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9-2-46: REPEAL OF CONFLICTING ORDINANCES
All sections or parts of sections of the 1969
Engle wood Municipal Code, as amended, or ordinances
or parts of ordinances in conflict or inconsistent
herewith, are hereby expressly repealed,
9-2-47: SEVERABILITY
I f any part ot· parts hereof is for any reas c n
held to be inval i d, such shall not affect the ren:ain i ng
portions of this ordinance.
Section 2.
That Sections 41 and 42 of Chapter 2, Article IX of
Article IV, entitled, "Mis c ellaneous Amusement Fees 11
, and
"Closing Hours -Miscellanecus Amusement Houses", respectively,
a>·e hereby renumbered as follows:
~:
2._-2-51:
RTICLE IV -MISCELLANEOUS
MISCELLANEOUS /ll 'USEMENT FEES
CLOSING HOURS -MISCELLANEOUS AMUSEl'.ENT HOUSES
Introduced, read in full and passed on first reading
on the 4th day of October, 1976.
Published .,s a J3il i for an Ordinance on the 6th day
of October, 1976.
Read by title and passed on final reading on the
18th day of October, 1976.
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Published by title as Ordinance No. _5_1 __ , Series
of 1976, on the 20th day of October, 1976.
~(/2~ u MAYOR
1
ATTEST:
I , William D. James, do hereby certify that the
above and focegoing is a true, accurate and complete co~y
o f. the Ordinmce, passed on final reading and published by
title as Ordinance No. _5_1 __ , Series of 1976.
ex officio~Clerk-Treasurer
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Issu e: Engl · wood 3% admissions tax
Action: Repeal the 3% admi ssio ns tax
Presented By: Steven Schalk
Gothic Theatre
3263 S. Broadway
Cultural Arts in Englewood has been a large focus of the community and city co uncil.
The cultural arts ori;an iza tion in Englewood has done a feasibility study on a proposed
Englewood cultural arts center; the study showed J need for tickets to be competitively
priced. Englewood has a 3% ad missions tax , Denver does not have this tax, allowing the
Ogden, Bluebird and the Fillmore Theatres to be more competitve in a city that supports
and promotes a night life and entertainment industry. Making Denver an overwhelming
favorite for cultural arts support and promotion. Englewood City Council can begin
supporting cultural arts by supporting the Gothic Theatre. No mailer the culture or the
art, Englewood is a long way from being a destination spot after 5pm . The Gothic
Theatre is a virtual island, which has successfully drawn a following from many of the
Front Ran ge communities. An island in th at there are no other supporting businesses or
even any nightlife after 5pm making promoting concerts even more challengin.~.
Denver's support goes beyond the 3%. The Ogden Theatre is owned by Dour Kaufman .
The previo us Gothi c Thea tre owner focused his energy and capital on the Ogdzn in tht
mid I 990's when the City of Denver gave the Ogden $100,000 to help restore the still run
down historical venue . The Ogden has no commitment to pay th is money back . The
Ogden is th e Gothic Theatre's main competitio n. Considering the incentives Denver
gives the Ogden and the 3% admi ss ions tax the Gothi c pa ys the City of Englewood, the
Gothic is always at a disadvantage. The Englewood cultural arts study emphasi zes this
very sensitive subject , ticket pricing . Englewood needs to make changes. The Gothic
Theatre has made ,1 substantial investment in the community and I would li ke to see
Englewood suppori the arts by repealing the 3% admissions tax and making Englewood
competitive with Denver.
The additional marketing that is required to bring people to this destination point is far
more expensive given the location. The benefit of Denver 's Colfax ; the follt traffic and
rynergy of businesses that make Den ve r cor.,e alive at night , is a great draw. The Got~i ~
Theatre maintain s a high profile in the metro Denver mark et by running extensive
advertising in print and radio . The Gothic Theatre advertises with The Rocky Mountain
News, Denver Post , Westword, and the Onion new spapers . We co-promote numerous
shows with Clear Channel, which operates KBCO , KTCL, KBPI, and the FOX radio
stations . KUVO helps us prom ote jazz shows. Anheuser-Busch, our beer sponsor,
pro vides us with even more radio advertising. We have an in house graphic artist and
desktop publishin g system to output thousands of 11 x 17 posters and flie rs weekly.
Certainly the Gothic has to advertise in order to promote shows, hut a lot of extra
spending goes into dra1ving folks to Englewood, a non-destination spot. It's a risky
proposition fo r restaurants and entertainment to invest m "community that has no life
after 5pm . Gothic The atre promotions bring attention to the sleep y City of Englewood .
The Gothic Theatre is pioneering the way for more cultural arts and entertainment to
follow . The Gothic Theatre has national recognition among artists, agents and record
labels as a premier concen hall with histo ry, an art deco style and a world-c lass sound
syst em.
The glamour and exciting idea most have of the rock and roll industry comes with
enormous risk and speculation. National artists put tours together and clubs like the
Gothic make offers to an agent for an artist based on a guaranteed amount, which we pay
in advance of th e performance. On average, talent guarantees are $4000 but can be as
high as $25,000 for one night! W11ether we attract I person or 600, whether it rains or
snows , whether we ha\'e power or we don't , the band still gets paid and the Gothic is
taking a risk . This is a far different risk than a business that offers a product or service.
All cultural '.lrts events have numerous variables that often can 't be foreseen, which can
make or break a show . Ultimately the artists drive this highly com pe titive market and a
proven artist costs more. We compete with the Ogden and the Bluebird for this highly
sought after talent. The agent and artist know Denver, Englewood is a harder sell. All
these factors drive an artist 's guarantee to an inflated price making it hard to cover the
guarantee from ticket sales . The Gothic depends primarily on concession income to bear
the strain of this risk . When it all comes together it's beautiful, and I'd bet some of you
have been t,, rhe Gothic for a !,'feat show, but were you here when only 25 people paid? I
will even admit that at one show we sold only one ticket. I was here . So many fail in
enterta inm ent because artist costs are so high along with the venue , sound , and lights .
Only th e most passionate promoters survive .
So sensitive is the ti cket price that a 3% admissions tax does have a market impact for the
Got'uc when our competition has so man y advantages . Stop taxing cultural arts patrons .
The Gothic Theatre was built in 1929 and has been offering a source of fine
entertainment for generations . Englewood residents all have memories and stories from
the Goth •: Theatre and now new memories are made each day an artist steps onto the
st :igt:
Year 2000
# Of persons : 90 ,000
Age Demographic Breakdown :
10% 16-ISYrs 65% 18-J0Yrs
Ticket Sales : $456 ,742
Artist Cost: $385,218
Profit : $71,524
Year 10 date 2001 (8 months)
75 ,000
25 % '0 and ove r
$533,641
$351,4 80
$ld1,000
These numbers do not include any oper.iting costs, salaries, or promotional costs . Just
Ticket sales and gross box office sales .
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