PORT TOWNSEND — Tasked with a question of where to find more revenue to balance the city budget, the City Council turned to a proposed admissions tax during a workshop discussion Monday evening.
If adopted, the tax would be added starting in 2007 to admissions for entertainment, recreation and amusement events within the city limit.
It would apply to a Friday night concert with a cover charge at a downtown nightclub, for example, or a larger event such as the Wooden Boat Festival, the city staff said.
A purchaser of a $10 concert ticket would pay an additional 50 cents if the city decided to adopt the maximum allowable tax.
The Monday night workshop is the first time the City Council discussed the issue in detail. Councilmen Kees Kolff and Geoff Masci were absent.
September forum
The council has tentatively scheduled a public forum for early September to allow residents and event organizers to comment.
“We need to hear from the group of people who are going to be affected by this,” said Councilwoman Freida Fenn.
City policymakers hope to alert event planners’ attention to the proposal.
“There are essentially two taxes that the city has authority to tax but hasn’t used,” said City Manager David Timmons at the beginning of Monday’s discussion.
Along with the maximum 5 percent admissions tax, the city can also charge a 6 percent cable TV utility tax with the council’s approval, Timmons said.
As a full service city, Port Townsend provides services based mostly on the revenue from property taxes without any special districts, the city manager said.
Strapped for cash
After residents rejected a proposed property tax increase last year, the city remains strapped for cash.
“We have a deteriorating infrastructure that is in need of repair,” said Timmons.