Photo via Beauty Bar Chicago Twitter.
Illinois' Cook County, which includes the city of Chicago, is attempting to collect thousands of dollars in back taxes from many small city venues because it does not believe the shows they book are live cultural performances. Venues with a capacity of 750 or fewer are exempt from a 3% tax on cover and ticket charges for, "live theatrical, live musical or other live cultural performances." Live cultural performances are defined as, "any of the disciplines which are commonly regarded as part of the fine arts, such as live theater, music, opera, drama, comedy, ballet, modern or traditional dance, and book or poetry readings."Among the many venues hit, the Chicago Reader reports the county wants to collect more than $200,000 from Beauty Bar, a popular nightclub that hosts a wide variety of live performances, DJ sets, dance parties, and LGBT-friendly events. Other venues have reportedly asked to remain anonymous.According to the Reader, this is not the first time governmental bodies have attempted to collect taxes on small, nightlife-oriented venues in the city. The City of Chicago tried to collect an 8% amusement tax on DJ performances in the city because they did not believe those performances were exempt. The Department of Revenue for the city of Chicago determined in 2006 that DJ sets can be classified as "live cultural performances" and exempt from the amusement tax so long as the sets "substantially add to or modified prerecorded material." This can be done through "technical manipulation, singing, speaking, dancing or other activity."DJ sets and electronic music performances are reportedly not the only potential nightlife events under attack. Representatives for the Hospitality Business Association of Chicago and 16" on Center (a development company that owns Beauty Bar), claim that a hearing officer at an administrative hearing said, "rock, rap, and grunge," should not be considered "fine art" by the county's standards.The next administrative hearing is open to members of the public and takes place at 118 N. Clark, room 1140 on Monday, August 22 at 10 a.m.
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