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Economy and Business Thursday, July 12, 2012 Small music clubs hail Cleveland's admission tax reduction, but some seek more help Music clubs are looking for a break from big unpaid tax bills by WKSU's KEVIN NIEDERMIER |
 Reporter Kevin Niedermier | | |
 | | The Beachland Ballroom is one of the clubs welcoming the break, but it still owes hundreds of thousands in back taxes. | | Courtesy of ALISON RITCHIE |
In The Region: Cleveland City Council is cutting in half the city’s admission tax that small music clubs had to pay. This week’s decision affects clubs that hold 750 or fewer patrons, but small club owners say the old 8 percent tax was more than they could afford. And while they welcome the future relief, WKSU’s Kevin Niedermier reports that old tax bills are still a big problem for some clubs. |
While Cleveland’s small music club owners are cheering City Council’s admissions tax reduction, the decision does not excuse back taxes. In recent years, the Beachland Ballroom has accumulated about $400,000 in unpaid taxes, interest and penalties. The Beachland and the club Peabody’s owe the most. But Beachland Ballroom co-owner Cindy Barber is hopeful she can work out a deal with the city.
“There is some conversation about kind of cutting us…somewhat of a break,” she says. “They’re already agreed to cut out the penalties, but there’s another $40,000 or more in interest, and there’s talk of them now cutting it down to a reasonable amount of money possibly that Peabody’s and I could each handle so that we don’t have that handing over our heads.”
Barber says their conversations have been with city council members. Mayor Frank Jackson’s administration is not commenting on the back tax issue. Aside from back taxes, Barber says cutting the admission tax to 4 percent makes it easier for her club to compete with venues in nearby cities. In Cleveland Heights for instance, the admission tax is just 3 percent.
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