x

The latest industry news to your inbox.


I'd like to hear about marketing opportunities

    

I accept IQ Magazine's Terms and Conditions and Privacy Policy

news

Chicago approves controversial ‘ticket tax’ rise

Chicago city councillors have voted 47–3 in favour of Rahm Emanuel's amusement tax increase, which will see the levy on large venues rise from 5% to 9%

By Jon Chapple on 23 Nov 2017

Rahm Emanuel, mayor of Chicago

image © Daniel X. O'Neil

The cost of many concert tickets in Chicago is set to rise after councillors voted overwhelmingly to increase the city’s amusement tax by 4% in 2018.

Chicago City Council on Tuesday approved mayor Rahm Emanuel’s 2018 budget by a 47–3 vote, setting the stage for tax hikes on venues with a capacity over 1,500, from 5% to 9%. Currently, a 5% levy is imposed on tickets to any “live cultural performance in a for-profit venue.

Emanuel – the brother of WME co-CEO Ari – expects the tax increase to bring in an additional US$15.8 million for the city, reports the Chicago Tribune.

Mayor Emanuel expects the tax increase to bring in an additional $15.8m

Stop Higher Amusement Taxes, a coalition of thousands of Chicago entertainment-industry workers, opposes the rise, saying “higher concert amusement taxes will drive shows to venues outside of Chicago to more tax-friendly local cities – or worse: some shows may bypass Chicago altogether.”

However, venues with a 750–1,499 capacity – previously taxed at 5% – will be exempt, while those with under 750 seats will similarly pay no tax. The amusement tax made headlines last August after it emerged two venues – both of which will now be exempt – were being chased for $200,000 in “crippling” back taxes.

Other tax increases coming into effect on 1 January include hikes on property, water, sewerage and ride-sharing services such as Uber and Lyft.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.