Will the Amusement Tax Get the Ax?

The short list of people interested in nurturing any local music scene rarely includes politicians–in fact, in Chicago the pols seem too busy fielding complaints about the noise and booze that go hand in hand with live music. Yet last month at a City Council meeting, 43rd Ward alderman Charles Bernardini and 44th Ward alderman Bernie Hansen introduced legislation designed specifically to help smaller clubs around the city.

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Bernardini and Hansen–whose combined turf includes Wrigleyville and Lincoln Park–are proposing an exemption from the city amusement tax for clubs with capacities of 1,100 and less. The 51-year-old tax, which amounts to a cut of the gross take from sporting events, movies, theater, bowling, and pay TV as well as concerts, has increased considerably during this decade. After a long stay at 4 percent, it was hiked to 6 percent in 1993 and then 7 percent in 1995. When Cook County got into the act, levying its own 3 percent amusement tax in February 1997, the total amount skimmed off the top ballooned to 10 percent. For venues presenting cutting-edge rock or nonmainstream styles like jazz and ethnic music, that can mean the difference between breaking even and losing money.

Though he is quick to deflect credit, Jam Productions co-owner Arny Granat seems to have been a major player in bringing the issue to this point. He called it to Hansen’s attention in late 1996, after trying to book the Broadway musical Rent into the Vic. He’d eventually had to pass on the deal, because on top of the expense of putting on a musical the amusement tax would have broken the camel’s back. Granat also contacted Bernardini, whose ward contains quite a few live-music venues. He’s met regularly with both men and written letters to club owners across the city, urging them to urge their own aldermen to support the ordinance.

According to Bernardini the proposed legislation will go to the council’s finance committee next month. If it’s approved there, it will go to a vote by the council later this year.

Art accompanying story in printed newspaper (not available in this archive): photo by Marty Perez.