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CITY OF VANCOUVER OTHER REPORT |
Date: |
October 27, 2004 | |
Author: |
Vancouver Athletic Commission | |
Phone No.: |
604-434-7462 | |
RTS No.: |
4383 | |
CC File No.: |
3111-1 | |
Meeting Date: |
December 16, 2004 |
TO: |
Standing Committee on City Services and Budgets |
FROM: |
Vancouver Athletic Commission |
SUBJECT: |
Amendments to By-law No. 2875 - A by-law to establish the Vancouver Athletic Commission |
RECOMMENDATION
THAT Council authorize the Vancouver Athletic Commission to charge a fee in respect of a contest or exhibition by way of a seat tax charge based on the size of the event held as follows:
Under 500 seats: |
10 cents per occupied seat |
Between 500 - 2000 seats inclusive: |
15 cents per occupied seat |
Over 2000 seats: |
25 cents per occupied seat; |
AND THAT Council instruct the Director of Legal Services to bring forward an amendment to Vancouver Athletic Commission By-law No. 2875 to repeal any existing fees, and substitute such seat tax charges.
CITY MANAGER'S COMMENTS
The Vancouver Athletic Commission has been charging a seat fee of ten cents per paid seat for the past number of years. A review of the financial statements of the Vancouver Athletic Commission for the past four years reveals that the Commission's bank balance has been increasing during this period. Given that the seat fee revenue is meant to cover its expenses related to events within its jurisdiction, it appears that the current fee level of ten cents per paid seat is sufficient.
It is therefore recommended:
THAT Council authorize the Vancouver Athletic Commission to charge a fee in respect of a contest or exhibition by way of a seat tax charge based on 10 cents per paid seat;
AND THAT Council instruct the Director of Legal Services to bring forward an amendment to Vancouver Athletic Commission By-law No. 2875 to repeal any existing fees, and substitute such seat tax charge.
COUNCIL POLICY
There is no applicable Council Policy.
PURPOSE
To obtain Council approval for a seat charge for contests and exhibitions, based on the number of seats filled, under Vancouver Athletic Commission By-law No. 2875 (the "By-law").
BACKGROUND
S. 338 of the Vancouver Charter empowers Council to establish the Vancouver Athletic Commission (the "Commission"), which Council has done under the By-law, and, among other things, to establish fees the Commission may charge in respect of contests or exhibitions. The Charter does not set a cap on the amount of such fees. The fee of one cent per seat provided under the By-law was set in 1945, and has been obsolete for many years.
DISCUSSION
At its meeting on August 17, 2004, the Commission passed the following motions regarding the seat tax:
THAT the Seat Tax be based on `occupied seats' rather than `paid' tickets.
THAT the Seat Tax charges be based on the size of the event held and the following criteria:
Under 500 seats filled: |
10 cents per occupied seat |
Between 500 - 2000 seats: |
15 cents per occupied seat |
Over 2000 seats: |
25 cents per occupied seat; |
The reason for basing the seat tax on occupied seats rather than paid tickets is that `occupied seats' include both paid tickets and those tickets given to attendees on a complimentary basis, thus making it easier to verify with venue attendance records which are generally based on `head count'.
Further, the recommended seat tax charges based on size of the contest of exhibition will encourage small-scale promoters who are typically local and have small attendance.
The recommended seat taxes are in line with, but still lower than, other athletic commission jurisdictions in Canada.
FINANCIAL IMPLICATIONS
There are no financial implications to the City. The Commission uses revenue generated by the seat tax to cover its expenses related to events within its jurisdiction.
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