Explanation
Background: In December 2018, Columbus City Council passed Ordinance No. 3379-2018 which enacted Chapter 376 of the Columbus City Codes in order to establish the Facility Stabilization fund and an admissions tax on entrance to events held at Nationwide Arena. Chapter 376 was further amended to strengthen the regulatory tax framework in December 2019 with the passage of Ordinance No. 3102-2019. This third piece of legislation will amend Chapter 376 to increase the admissions tax for events held at Nationwide Arena in order to support additional capital investment in the facility.
Fiscal Impact: No funding is required for this legislation. The admissions tax established under Chapter 376 of the Columbus City Codes is being increased by two percent, and the additional two percent is being allocated to the Franklin County Convention Facilities Authority to support Nationwide Arena.
Title
To amend and enact various provisions of Chapter 376 of the Columbus City Code in order to strengthen the levying, collection, and allocation of admissions tax for facility stabilization receipts. ($0.00)
Body
WHEREAS, Nationwide Arena is an essential component of Columbus’ economic development and the city’s capacity to attract concerts, conventions, and events; and
WHEREAS, the profile of Columbus as a destination city requires increasing demand on the capacity of Nationwide Arena; and
WHEREAS, Nationwide Arena is a publicly owned facility, and in order to meet the long-term needs of Nationwide Arena, it is necessary to strengthen the dedicated funding stream provided by the admissions tax to support essential facility maintenance, upgrades, and repairs; and
WHEREAS, the tax enacted under this ordinance will provide the resources necessary not only for the capital needs of Nationwide Arena, but also support for capital improvements to other major cultural facilities, sports venues, public art, and performance arts spaces; and
WHEREAS, Chapter 376 of the Columbus City Codes regards the taxation of admissions to events held at Nationwide Arena; and
WHEREAS, it has become necessary in the usual daily operation of the City of Columbus, in promotion of its efforts to invest in the creative economy pursuant to the 2022 Downtown Columbus Strategic Plan, adopted by City Council under Resolution No. 0164X-2022, to amend Chapter 376 which provides taxation regulations on admissions to events held at Nationwide Arena; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Sections 376.02, 376.03, and 376.04 of the Columbus City Codes are hereby amended to read as follows:
376.02 - Establishment and Imposition of Tax.
(a) For the purpose of providing revenue for the support and stabilization of cultural arts facilities, sports facilities, public art, and performance venues in the city, there is hereby levied, and shall be paid and collected an admissions tax of five percent (5%) on the price paid to gain admission to any event occurring at Nationwide Arena, pursuant to Article XVIII, Section 3 of the Ohio Constitution and Ohio Revised Code Section 715.013(B)(1). The tax shall apply to every admission for which a charge is made, excepting those performances and events which are exempted as provided in this chapter, notwithstanding the sale of the ticket or other evidence of right of admission thereto is made outside of the city.
(b) For the purpose of providing revenue for the support and stabilization of cultural arts facilities, sports facilities, public art, and performance venues in the city, there is hereby levied, and shall be paid and collected an additional admissions tax of two percent (2%) on the price paid to gain admission to any event occurring at Nationwide Arena, pursuant to Article XVIII, Section 3 of the Ohio Constitution and Ohio Revised Code Section 715.013(B)(1). The additional tax shall apply to every admission for which a charge is made, excepting those performances and events which are exempted as provided in this chapter, notwithstanding the sale of the ticket or other evidence of right of admission thereto is made outside of the city.
376.03 - Intended Use.
(a) The full amount of the revenue collected by the City from the admissions tax levied pursuant to Section 376.02 shall be allocated as follows, subject to appropriation and approval of city council, and shall be utilized for the following purposes:
1. Eighty percent (80%) of the admissions tax levied under Section 376.02(a) shall be allocated to the Franklin County Convention Facilities Authority and shall be designated for the purpose of making capital improvements, or for debt service on bonds issued for capital improvements, to Nationwide Arena.
2. Twenty percent (20%) of the admissions tax levied under Section 376.02(a) shall be allocated to the Greater Columbus Arts Council and shall be designated for support of cultural arts facilities, sports facilities, public art, and performance venues, other than Nationwide Arena, within the city.
3. One hundred percent (100%) of the admissions tax levied under Section 376.02(b) shall be allocated to the Franklin County Convention Facilities Authority and shall be designated for the purpose of making capital improvements, or for debt service on bonds issued for capital improvements, to Nationwide Arena.
(b) The payment schedule for the aforementioned allocation shall be determined by the Auditor.
(c) The Franklin County Convention Facilities Authority and the Greater Columbus Arts Council shall within one hundred twenty (120) days after the end of their respective fiscal years provide to the Auditor financial statements of the organizations for such fiscal year prepared in accordance with generally accepted accounting principles, with an opinion thereon by a firm of certified public accountants.
(d) The Franklin County Convention Facilities Authority and the Greater Columbus Arts Council shall within one hundred twenty (120) days after the end of their respective fiscal years provide to Council a report of activities with regard to the utilization and distribution of funds associated with the admissions tax.
376.04 - Effective Date.
The tax levied and imposed pursuant to the provisions of this chapter Section 376.02(a) of this Chapter shall apply to any admissions charged and paid on and after July 1, 2019. The tax levied and imposed pursuant to the provisions of Section 376.02(b) of this Chapter shall apply to any admissions charged and paid on and after July 1, 2026.
SECTION 2. That existing Sections 376.02, 376.03, and 376.04 of the Columbus City Codes are hereby repealed.
SECTION 3. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.