Cook County is attempting to collect hundreds of thousands of dollars in back taxes from several small Chicago music venues, claiming that the establishments should not have been exempt from a county amusement tax because the shows they book do not constitute “live cultural performances.”
More than a decade ago, the City of Chicago attempted to collect an 8 percent amusement tax on DJ performances from multiple music venues, claiming that such performances didn’t fall under a similar city exemption. In 2006, the city’s Department of Revenue ruled that DJs should be classified as “live cultural performances” (and therefore exempt from the tax) as long as the performances substantially add to or modify prerecorded material through “technical manipulation, singing, speaking, dancing or other activity.”
Giron is frustrated that the county is going after back taxes for performances the city deemed culturally relevant and enriching years ago. “It’s not news the county is struggling with budget issues,” he says. “We can only speculate they saw us as a potential loophole.”
The next administrative hearing takes place Monday, August 22, and Giron suspects Cook County will rule against the venues, forcing an expensive appeal. He holds out hope, though, that some official or other will step in to stay the cases—not least because they don’t want to be on the record insisting that some of Chicago’s most important cultural products don’t count as art.
