[Adopted 6-20-2023 by Ord. No. 63-2023[2]]
This article shall be known and may be cited as the "City Amusement
Tax Ordinance."
The Council of the City of Scranton, Pennsylvania, under and
by virtue of the authority vested in it by the Act of December 31,
1965, being Act No. 511, known as the "Local Tax Enabling Tax,"[1] as amended, does hereby ordain that a tax to provide revenue
for general City purposes is hereby levied, assessed, and imposed
upon the privilege of admission to a place of amusement in the City
of Scranton in accordance with the following.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
This article is enacted under the authority of Act 511 of December
31, 1965 (P.L. 1257, and its amendments, specifically 53 P.S. § 6924.101
et seq.).
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meanings
All manner and form of entertainment, including, among others,
but not intended to be a comprehensive list thereof, theatrical or
operatic performances, concerts, vaudeville, circuses, carnivals,
fairs, side shows and museums; all forms of entertainment at fairgrounds
and amusement parks; swimming pools, swim clubs, athletic contests
or diversions, including, among others, wrestling matches, boxing
and sparring exhibitions, football, basketball and baseball games,
skating, golfing, golf driving and miniature golf ranges, sport exhibitions,
athletic or sport participation, tennis, hockey, bathing, swimming,
archery, shooting, riding, dancing and all other forms of diversion,
sport, recreation or pastime; shows, trade shows, craft shows, and
similar exhibits, exhibitions, contests, displays and games, as well
as all other methods of obtaining monetary admission charges, donations,
contributions or monetary charges of any character, from the general
public or a limited or selected number thereof, directly or indirectly,
in return for other than tangible property.
Any partnership, limited partnership, joint venture; unincorporated
association or other form of unincorporated enterprise owned or organized
or operated by one or more persons.
Regular monetary charge of any character whatever, including
donations, contributions, fixed and exacted, or in any manner fixed
and received by producers, as herein defined, from the general public
or a limited or selected number thereof, directly or indirectly, for
the privilege to attend or engage in any entertainment or amusement,
provided that when such entertainment or amusement is conducted at
any roof garden, nightclub, cabaret or other place where the charge
for admission is wholly or in part included in the price paid for
refreshment, service or merchandise, the amount paid for admission
to such amusement shall be deemed to be the amount of the cover or
minimum charge, if any.
Every natural person and individual, copartnership, association,
corporation, unincorporated enterprise owned by one or more persons
or corporation, domestic or foreign, or an agent who provides admission
at an established price to a place of amusement. Whenever used in
any clause prescribing and imposing a penalty, the term "person,"
as applied to copartnerships or associations, means the partners or
members thereof and, as applied to corporations, the officers thereof.
Any place where the maximum venue capacity is greater than
500 people, indoors or outdoors, within the City where the general
public or limited or selected number thereof may, upon payment of
an established price, attend or engage in any amusement as herein
defined, including, among others, theaters, opera houses, amusement
parks, stadiums, arenas, baseball parks, skating rinks, circus or
carnival tents or grounds, fairgrounds, halls, lodge rooms, riding
academies, golf courses, bathing and swimming places, dance halls,
tennis courts, archery, rifle or shotgun ranges, roof gardens, cabarets,
nightclubs and other like places. Any place where the maximum venue
capacity is 500 people or less is not subject to the amusement tax
imposed herein.
Any person conducting any place of amusement, as herein defined,
where the general public or a limited or selected number thereof may,
upon the payment of an established price, attend or engage in any
amusement.
An amusement to be conducted at one location for a period
of less than one month.
A.Â
Exempt activities. The following activities shall be exempt from
the amusement admission tax:
(1)Â
Student activities. The tax imposed by this article shall not apply
to admission to any form of amusement which involves participation
of students in high school or younger and/or which is sponsored, organized
and promoted by, and whose benefits inure to a public school(s) or
public school district(s) within the Commonwealth of Pennsylvania
for students of high school age or younger, or to the students of
such public school(s) or public school district(s) or a nonprofit
organization created and operated to coordinate such events, such
as the Pennsylvania Interscholastic Athletic Association, or organization(s)
or association(s) comprised of public school officials or public school
educators, if a majority of the members of such nonprofit organization
consists of public schools, public school districts, public school
officials or public school educators; and
(2)Â
Free, amateur performances. Admission to any voluntary, live production,
performance, or show. The term "voluntary" as used herein refers to
and shall mean one who performs in a live production or show gratuitously
and without monetary compensation therefor, including, but not limited,
nonpaid amateur and student performers; and
(3)Â
Nonprofit, IRS 501(c)(3) organizations. The amount charged and paid
for admission to any amusement sponsored by any organization of the
type listed in § 501(c)(3) of the Internal Revenue Code
of 1986, as amended, 26 U.S.C. § 501(c)(3), contributions
to which are tax-deductible as charitable contributions under other
provisions of said Internal Revenue Code; and
(4)Â
National, state, county or local government. The amount charged and
paid for admission to any amusement sponsored by any arm, branch,
department or agency of the United States Federal Government, Pennsylvania
State government or a local government, county school district or
other political subdivision, where the proceeds collected by such
organization from charges paid for admissions to such amusement go
directly to said governmental organization.
B.Â
Exemption process. The entities listed in Subsection A(1) through (4), above, are automatically exempt. Any producer may request an opinion from the City of Scranton Treasurer or their designee as to the applicability of the tax to one or more of their amusement activities, provided such request is made in writing at least 30 days prior to such amusement activity.
A.Â
Imposition; rate. A tax is imposed upon the sale of admission or
privilege to attend or engage in any amusement at a place of amusement
at the rate of 5% of the established price.
B.Â
Permanent seats or boxes. In the case of persons having the permanent
use of boxes or seats in any place of amusements, or in the case of
a person admitted at a reduced rate or season or subscription ticket,
or a lease for the use of such box or seat in such places of amusement,
the tax imposed by this article shall be computed on the established
price for which a similar box or seat is sold for each performance
or exhibition at which the box or seat is used or reserved by or for
the lessee or holder, such tax to be paid by the producer.
C.Â
Free or complimentary tickets. In the case of the person admitted
free or with complimentary ticket for which no price of admission
is charged, no tax shall apply, except that the producer of any amusement
within the City shall not issue complimentary tickets or allow free
admission in an amount in excess of 10% of the total number of paid
admissions to any individual amusement event.
D.Â
No fixed admission charged. Where no fixed admission is charged the
tax shall be based upon the gross admissions collected and shall be
paid by the producer.
A.Â
Producers shall collect the tax imposed by this article and shall
be liable to the City as agents thereof for the payment of the same
into the City Treasury through the Office of the City Treasurer or
its designee, as hereinafter provided in this article.
B.Â
When temporary amusements are conducted by persons who are not the
owners, lessees or custodians of the place(s) of amusement where the
amusements are to be conducted, the tax imposed by this article shall
be paid by the owner, lessee, or custodian of such place(s) where
such temporary amusement is held or conducted, unless paid by the
producer conducting the amusement.
A.Â
For the purpose of ascertaining the amount of tax payable by the
producers to the City, it shall be the duty of:
(1)Â
Every producer conducting a permanent place of amusement, on
or before the last day of each month following the end of each quarter
of each year, after the effective date of this article, shall transmit
to the Office of the City Treasurer or its designee, on a form prescribed
and prepared by the City a report of the amount of tax collected by
the producer during the preceding quarter of the year. Quarters of
the year shall end as follows: March 31, June 30, September 30, December
31. Reports due, respectively for each quarter, on or before April
30, July 31, October 31, and January 31.
(2)Â
Every producer conducting a temporary place of amusement or
itinerant form of amusement to file a report with the Office of the
City Treasurer or its designee or its duly authorized agent promptly
after each performance not more than 30 days thereafter.
B.Â
All reports required under this section shall show such information
as the Office of the City Treasurer or its designee shall prescribe.
C.Â
Every producer at the time of making every report required by this
section shall compute and pay to the Office of the City Treasurer
or its designee the taxes collected by the producer and due to the
City during the period for which the report is made. All taxes shall
bear interest at the rate of 12% per annum from the last day of the
month from which such payment is due until paid. Interest will be
calculated at 1% for each month or partial month.
If any producer shall neglect or refuse to make any report or
payment as herein required, all such taxes shall be recoverable by
the City Solicitor and/or their designee as other debts due the City
are now by law recoverable, including costs of collection.
If the Office of the City Treasurer or its designee is not satisfied
with the report and payment of tax made by any producer under the
provisions of this article, the City Treasurer or their designee is
authorized and empowered to make a determination of the tax due by
such producer, based upon the facts contained in the report or upon
any information within the City Treasurer's or designee's
possession or that shall come into the City Treasurer's or designee's
possession, and for this purpose, the Office of the City Treasurer
or its designee is authorized to examine the books, papers, tickets,
ticket stubs and records of any producer taxable under this article
to verify accuracy of any report or payment made under the provisions
thereof or to ascertain whether the taxes imposed by this article
have been paid.
If any producer shall neglect or refuse to make any report or
payment of tax required by this article, or if as a result of an investigation
by the Office of the City Treasurer or its designee a report is found
to be incorrect, the Office of the City Treasurer or its designee
shall estimate the tax due by such producer and determine the amount
due by the producer for taxes, penalties, and interest thereon.
All taxes, interest, and penalties collected or received under
the provisions of this article shall be paid into the Treasury of
the City for the use and benefit of the City.
The office of the City Treasurer or its designee is authorized
and directed to make and keep such records, prepare such forms, and
take such other measures as may be necessary or convenient to carry
this article into effect and may, in their discretion, require deposits
to be made by persons conducting temporary amusement subject to the
tax.
Any person who shall be convicted for violating or failing to
carry out any of the provisions of this article or of neglecting,
failing, or refusing to furnish completed and correct returns or to
pay over any tax levied by this article at the time required or of
knowingly making any incomplete, false, or fraudulent returns or of
doing or attempting to do anything whatever to the payment of the
whole or any part of the tax imposed under this article shall be liable
to a fine or penalty not exceeding $500 for each and every offense
and the cost of prosecution thereof and, in default of payment of
any such fine and costs, to imprisonment for not more than 90 days.
Each day's operation, without complying with the provisions of
this article, shall constitute a separate and distinct violation of
this article.
If any section, clause, provision, or portion of this article
shall be held invalid or unconstitutional by any court of competent
jurisdiction, such decision shall not affect any other section, clause,
provision or portion of this article so long as it remains legally
enforceable minus the invalid portion. The City reserves the right
to amend this article or any portion thereof from time to time as
it shall deem advisable in the best interests of the promotion of
the purposes and intent of this article, and the effective administration
thereof.
