AN ORDINANCE relating to the Admission Tax, increasing the set-aside of certain Admission Tax proceeds for arts purposes beginning in January 2010, and amending Section 5.40.120 of the Seattle Municipal Code.

WHEREAS, Seattle's arts and cultural organizations and artists leverage the City's investment multiple times over in the community, and provide significant public benefits as a result of these investments; and

WHEREAS, the Office of Arts & Cultural Affairs (OACA) and its citizen advisory body, the Seattle Arts Commission, are committed to increasing public access to arts and culture, especially for Seattle's racially and ethnically diverse populations; and

WHEREAS, on November 27, 2000, the City Council passed Ordinance 120183, which amended Section 5.40.120 of the Seattle Municipal Code to create a new account in the General Subfund of the General Fund, required the deposit of twenty percent (20%) of all unrestricted Admission Tax receipts into such account, and required annual appropriations from that account to OACA for certain arts-related purposes; and

WHEREAS, the original intent of dedicating a portion of Admission Tax revenue to arts and culture was to provide a relatively stable, reliable and dedicated revenue stream to fund OACA's core programs; and

WHEREAS, General Subfund allocations currently supplement OACA's operating budget and dedicating additional Admission Tax revenue will provide more stable funding for OACA's award-winning programs; and

WHEREAS, the Mayor and City Council wish to fund OACA's non-public art programs solely with actual Admission Tax revenues by increasing the percentage dedicated to arts and culture from twenty percent (20%) to seventy-five percent (75%); and basing annual appropriations on actual collections data, beginning on January 1, 2010; and

WHEREAS, seventy-five percent (75%) of the most recent year's actual adjusted Admission Tax revenue, excluding revenue paid by the Seattle Super Sonics, Seattle Center Fun Forest and certain music venues exempted from the Tax by ordinance, is equivalent to OACA's 2010 Endorsed Budget, which was based on Admission Tax funding at the twenty-percent level as well as General Subfund support, making this action budget-neutral in 2010; and

WHEREAS, funding OACA's annual budget strictly with Admission Tax revenue, as opposed to supplementing it with General Subfund revenue, provides an incentive for OACA to advance and strengthen community cultural development, the Arts Partnership Initiative with Seattle Public Schools, and the artistic and creative sector workforce; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Effective January 1, 2010, Section 5.40.120 of the Seattle Municipal Code is amended as follows:

5.40.120 Receipts to General Subfund and Arts Account.

All receipts from the admission tax levied in this chapter shall be placed in the General Subfund of the General Fund, except that from January 1, 2005, through December 31, 2005, fifteen (15) percent of all admission tax receipts, other than receipts generated by men's professional basketball games, and from and after January 1, 2006, twenty (20) seventy-five (75) percent of all admission tax receipts, other than receipts generated by men's professional basketball games, shall be deposited into the Arts Account of the General Subfund of the General Fund. Money in the Arts Account of the General Subfund shall be annually appropriated to the Office of Arts and Cultural Affairs for the following purposes:

A. Initiatives to keep artists living, working and creatively challenged in Seattle;

B. Initiatives to build community through the arts and create opportunities for the public to intersect with artists and their work; and

C. For each new generation, initiatives that include art opportunities for youth in and out of school.

Section 2. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2009, and signed by me in open session in authentication of its passage this _____ day of __________, 2009.

_________________________________

President __________of the City Council

Approved by me this ____ day of _________, 2009.

_________________________________

Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2009.

____________________________________

City Clerk

(Seal)

Jane Morris/bm

OACA Admissions Tax for Arts 2010 Ord

October 15, 2009

Version 12