Money grabs come in all forms. Most recently, a proposal to enact “amusement fees” was proposed by the City, using an obscure chapter of its code, “Chapter §75-1. Amusements Classifications,” to collect the fee from local music venues. Of course the owners of these venues are in an uproar, understandably, as the fee would add thousands of dollars to annual operating costs.
With many music venues still reeling from the pandemic, it’s a wonder that anyone could logically suggest hammering music venues with an “amusement fee,” aka a money grab. Not only would the venues be adversely affected, so would the customer who would be hit with higher ticketing fees as a result.
In a letter to venue owners last week, the City stated that it would be imposing the fee on on events that “include but are not limited to lectures, exhibitions, theatre, sports, comedy, music and other shows that charge a fee for entry.” If the fees were to be levied, the venue owners would have to apply for an amusement license for every event conducted, with the level of fees coinciding with the price of the tickets.
The obscure amusement fee is so outdated that it includes language such as “minstrel” shows and “exhibitions of moving pictures known as ‘mutoscope,’ ‘kinetoscope,’ ‘cinematograph,’ according to Assemblymember Jon D. Rivera and Senator Sean Ryan who have met with a number of local music venue owners to rally against the City of Buffalo’s ludicrous levy proposal – a proposal that seeks to help resolve the City’s brewing budget crisis. Not only would the venues, and the ticket holders be punished for the City’s economic blunders, so would tourism in general.
Arts Services Inc. of Western New York recently released an Arts and Economic Prosperity Report, which found that arts and cultural institutions supported 8,221 jobs in the area and has a $381.4 million impact on the economy.
“For years, the City of Buffalo has mismanaged its budgets, and current leadership now believes the answer is to punish small businesses and entertainment venues,” said Assemblymember Jon D. Rivera, who announced that he plans to seek legislative solutions that would prevent municipalities from resurrecting fees and taxes that haven’t been collected consistently in years, and which would require Common Council oversight and approval if such fees should be reimplemented. “Chasing these music clubs and venues, owned by hardworking Buffalonians attempting to diversify culture in our city, amounts to a new tax on top of the heap of fees, surcharges and taxes that these business owners already have to navigate. I plan to introduce legislation that will protect businesses from being blindsided by proposals like this in the future. We cannot allow small businesses to pay the price for the city’s fiscal incompetency.”
The proposal represents the most recent example of the City of Buffalo’s attempts to reverse its dismal financial outlook, as operating costs rise and revenues remain static.
“Buffalo’s looming budget crisis is the product of a city government that has spent years prioritizing quick fixes over responsible fiscal planning,” noted Senator Sean Ryan. “Reviving an obscure amusement fee to plug budget gaps is the same type of short-term thinking that got the City into this mess in the first place. This isn’t a problem that can be solved with quick fixes, and Buffalo can’t afford to keep kicking this can down the road until we’re back to a hard Control Board. Buffalo’s leaders need to permanently scrap this fee and stop trying to put this burden on the backs of small business owners when they should be working on solving the root issues that got us here.”
As backlash builds, the City has issued a “temporary pause” to the new mandate, which has not assuaged the ire of the local entertainment industry, or the public officials that find the measure offensive.
“It is absolutely necessary to maintain the crucial partnership between the city and our small businesses, which drives the growth of our vibrant arts and culture scene,” said Buffalo Common Council President Christopher P. Scanlon, who emphasized the critical role of the arts and culture sector in the City of Buffalo, highlighting its importance in enhancing residents’ quality of life, attracting visitors, and supporting small businesses and smaller entertainment venues. “While the amusement licensing fee is on pause, I will be meeting with small businesses and venues from across the city to gather input and feedback, working with them to ensure these vital venues and our arts and cultural scene continue to thrive and remain assets to our city and region.”
“I’m pleased the administration made the decision to halt implementation of this fee and so are the small businesses that would have been impacted by this,” said Delaware District Council Member Joel. P. Feroleto.
The current city budget, which went into effect July 1, includes a 4.2 percent hike in property taxes, among increases in other residential fees. In May, the Control Board for the City of Buffalo, imposed by New York State, identified up to $131 million in potential shortfalls over the next four years as budget deficits mount.
Buffalo Common Councilmember Joe Golombek said, “It’s concerning that small businesses are being asked to pay potentially large amounts as a result of this fee. I look forward to working with my colleagues in the Common Council and the City administration to find a solution that is both equitable and consistent.”
“We were shocked when we read the notice that an ‘Amusement License’ would be required for every event we conduct including our daily ride and amusement operation,” said Bill Casale, CEO of Buffalo Riverworks (lead image). “We have been in business for almost 30 years at Pearl Street Grill & Brewery and over 10 years at Buffalo Riverworks without this being applicable or even mentioned. These types of unplanned expenses can be detrimental to the overall success of a business – especially the entertainment industry which is still trying to recover from the COVID limitations four years ago. We are still unclear what the overall impact will be, but it is estimated to be well over $100,000 annually for Buffalo Riverworks. We understand that all businesses must do their part, but this is exorbitant. Brick-and-mortar operations already pay high taxes and other operational licenses, fees, permits and annual renewals. We hope the City of Buffalo comes to a better resolution. The entertainment industry has become a major part of the fabric and success of the City of Buffalo. We must be able to keep it going.”
Josh Holtzman, owner of Buffalo Iron Works & Twenty6 Production, said, “As an owner of Buffalo Iron Works, I’m deeply concerned about the new amusement license fee proposed by the City of Buffalo. While we appreciate the city’s decision to temporarily pause this fee, the underlying issue remains unresolved. This significant increase not only threatens the viability of our venue but endangers the entire live music scene that is vital to the cultural fabric of our community. Small businesses like ours are the heartbeat of downtown Buffalo, and such drastic financial burdens put us at risk of closure and undermine the local arts scene. Instead of penalizing us, the city should work collaboratively to support and sustain these essential venues. We call on city officials to not only remove this fee but to also engage with us in restructuring it in a way that truly supports and nurtures our vibrant community. It’s crucial that we address this issue comprehensively to ensure the continued growth and prosperity of Buffalo’s creative economy.”
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