File #: 20-1591    Version: 1 Name: Ordinance: Amendment to Major Places of Amusement Admission Charges Surcharge Tax
Type: Ordinance Status: Adopted
File created: 12/7/2020 In control: Finance
On agenda: 12/16/2020 Final action: 1/6/2021
Title: 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.
Sponsors: Council of the Whole
Title
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...

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