Wednesday, 18 December 2013

New North Carolina law to affect entertainment venues

A new admissions tax has presenters at local entertainment venues in Durham, North Carolina "scratching their heads," according to the Herald Sun.  Beginning in January, the cost of tickets for a concert, play, movie, ballgame and other types of entertainment will rise when an admissions tax that the state legislature enacted last summer takes effect. The new tax, enacted as part of a package of tax reforms, applies to venues as diverse as the Durham Performing Arts Center, the Durham Bulls Athletic Park, local music clubs and university artists’ series.  The base tax is 4.75 percent plus any local sales tax. In Durham and Orange Counties, the tax will be 7.5 percent; for Chatham, 6.75 percent. However and confusingly there are some exemptions, and some events have been “grandfathered” from the tax. For example, Durham Bulls fans will not have to pay the tax on 2014 games because they were first sold and advertised in 2013. Whilst commentators say the additional tax likely will not sway audience members determined to see their favoirite performing artist, it may “affect folks on the fence” who are having to be more budget conscious, said Mark Z. Nelson, director of marketing and communications for Carolina Performing Arts, and Nelson said he is concerned about the possible impact on sales of tickets to students. 

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