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AN ORDINANCE AMENDING AND SUPPLEMENTING THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, 2000, TITLE X, TO AMEND CHAPTER 30 AUTHORIZING THE IMPOSITION OF A 1.375% SURCHARGE TAX ON ADMISSION CHARGES AT CERTAIN MAJOR PLACES OF AMUSEMENT IN THE CITY OF NEWARK, NEW JERSEY.
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WHEREAS, the revised statutes of the State of New Jersey P. L. 2007, Chapter 302, (N.J.S.A. 40:48G-1 et seq.), effective January 13, 2008, amended by P.L. 2013, Chapter 84, authorizes municipalities to impose a surcharge up to 5% on admission charges at certain Major Places of Amusement through the adoption of an ordinance; and
WHEREAS, the City of Newark (the “City”) adopted such an ordinance, 6PSF-m, on September 18, 2013, authorizing the imposition of a 1.375% Admission Surcharge on all tickets for all events at each Major Place of Amusement in the City of Newark; and
WHEREAS, it is necessary to amend provisions of the ordinance defining the categories of tickets and events subject to an Admission Surcharge, as more fully set forth below; and
WHEREAS, these amendments are necessary so that the ordinance is consistent with the terms of the Agreement and Release entered into by City of Newark, Devils Entertainment Arena, LLC., Devils Renaissance Development, LLC., Newark Housing Authority, and Newark Parking Authority, with respect to certain rights and obligations concerning the Prudential Center Arena Lease, which Agreement and Release was authorized by Resolution 7R7-a(S) adopted on February 26, 2013; and
WHEREAS, as written, the ordinance inadvertently requires the imposition and collection of an Admission Surcharge on all events at each Major Place of Amusement, whereas the negotiated Agreement and Release memorialized that the City impose the admission surcharge solely on Tenant Events (as such term is defined in the Agreement and Release), such that under the Arena Lease the City and the Newark Housing Authority would be responsible for any surcharges not so memorialized; and
WHEREAS, to correct the error, these amendments must be retrospective to the date that the surcharge first took effect, thereby voiding and nullifying the imposition of the surcharge on non-Tenant Events for which the State of New Jersey, Office of the Treasury, Division of Taxation charged and sought to collect on the City’s behalf; and
WHEREAS, it is in the best interest of the City to ensure the existing ordinance is consistent with the negotiated and executed Agreement and Release to avoid incremental costs, expenses and potential litigation; and
WHEREAS, the ordinance amendments are in compliance with existing State law and are in the best interest of the City of Newark.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
[Note: Additions are noted as bold and underlined text and deletions as strike-outs.]
Section 1. Title X, Chapter 30, 1.375% Admission Ticket Surcharge of the Revised General Ordinances of the City of Newark, New Jersey, 2000, is hereby amended to read as follows:
10:30-2. DEFINITIONS.
The following definitions shall govern this chapter:
Admission Charge means the amount paid for admission tickets for all Tenant Events including any service charge and any charge for entertainment at a place of amusement, including but not limited to a dramatic or musical arts admission charge as defined pursuant to Subsection (r) of Section 2 of P.L. 1966, c.30 (C.54:32B-2) provided that admission tickets shall not include premium seat tickets, except for annual premium seat licenses that are sold or renewed after the Effective Date (and in such event an Admission Surcharge shall be assessed solely upon the premium seat license Ticket Component Value for all Tenant Events).
Effective Date means the date the surcharge provisions of City ordinance 6SPSF-m first took effect (contemplated by such ordinance to be the first day of the first full month occurring 30 days after the date of transmittal to the State Treasurer).
Tenant Events means all regular and playoff games for which the Major Place of Amusement is licensed or rented (on a season- by- season basis) for a tenant’s games played by any professional or collegiate sports team or league.
Ticket Component Value means the value of the standard seating tickets issued for the premium seat license, measured by the box-office price of general admission seating directly in front of the premium seat.
Section 2. All City ordinances or portions of ordinances inconsistent herewith are hereby repealed to the extent of their inconsistency only.
Section 3. Severability. If any part of this ordinance shall be declared to be invalid or inoperative, such part shall be deemed severable and the invalidity thereof shall not affect remaining parts of this ordinance.
Section 4. Effectiveness. The amendments to Ordinance 6PSF-m adopted on September 18, 2013, are retrospective to the Effective Date, and ratified from September 18, 2013 to the date of adoption of this amending ordinance. This ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
Ordinance ratifying and amending Title X, Chapter 30, to define the categories of tickets and events for the imposition of Admission Ticket Surcharge, at certain major places of amusements in the City of Newark, New Jersey.