Mayor announces incentive to encourage live music

SEATTLE - Seattle Mayor Greg Nickels today announced new steps to grow Seattle’s live music scene by introducing an admissions tax exemption for live music venues and launching a new venue assistance program.

“Seattle’s musicians are part of Seattle’s identity – they help give our city its soul,” said Nickels. “Live music performances bring us together and play a large role in our lives, and this incentive will ensure our musicians have more venues to share their creativity and spirit.”

The current admissions tax is 5 percent on every dollar of ticket sales. The exemption included in the mayor’s 2009-2010 proposed budget would benefit venues that have live music regularly.

“Live music venues are more expensive than your typical bar or nightclub because you have to pay many performers and it takes increased staff, equipment and space to operate.” explained Jerry Everard, a live music venue owner in Seattle. “It’s a tough business and this incentive could mean the difference between success and failure for some live music venues.”

The city estimates that up to 65 live music venues will take advantage of the admissions tax exemption. To be eligible, a live music venue must:

• Have an established certificate of occupancy of less than 1,000 persons;
• Host or present live music on average at least 3 times per week on a regular schedule;
• Hire on average at least 16 musicians per week; and
• Have committed no more than three violations of any one or more civil or criminal laws concerning public health, noise, licensing, taxing or permitting in the calendar year preceding or during the date the admission tax is due.

The mayor also introduced a music venue assistance program housed in the Office of Film and Music, which will give business owners technical assistance and a single point of entry to the city.

“We want to make it easier for live music venues to get started and stay in business,” said Nickels.

A comprehensive nightlife establishment guidebook has been developed through this program, detailing all the expectations of what it takes to operate a successful venue in Seattle and the resources available to succeed. The guidebook is available online at www.seattle.gov/music/nightlife.

“Our staff is here to work with live music venues and support musicians,” said James Keblas, director of Seattle’s Office of Film and Music. “Our venue assistance program will let the community know that we are a city that encourages more live music venues to open and actively supports more performance opportunities for musicians.”

The assistance program has already proven its effectiveness by bringing a quick resolution to a recent issue at Neumos, one of Seattle’s largest and most popular live music venues.

“The assistance program made it possible for us to continue doing business while we addressed the city’s concerns about occupancy,” said Steven Severin, an owner of Neumos. “We found the office to be very useful in helping us understand the city’s expectations and for the city’s enforcement agencies to understand our business needs. This program played an important role in resolving these issues.”

In 2004, an economic impact study revealed Seattle’s music industry contributed over $1.3 billion in annual revenues to the Seattle area. It supported more than 2,600 businesses and nearly 8,700 jobs. Seattle also boasts an impressive musical identity with ties to noted musicians and musical groups including Quincy Jones, Nirvana, Jimi Hendrix, Ernestine Anderson, Pearl Jam, Gerard Schwarz, Death Cab for Cutie, Speight Jenkins and Soundgarden; as well as flagship businesses such as Sub Pop, Amazon, Barsuk, RealNetworks, and Microsoft.

“A city that provides creative experiences for its residents and visitors attracts the best and brightest work force to a city, and strongly influences corporations’ choice in where to expand and relocate their businesses,” said Susan Shannon, director of Seattle’s Office of Economic Development. “Seattle’s rich music industry and community propels our city to the forefront of a rapidly expanding creative economy, and is one of our most important economic development assets.”

Visit the mayor’s web site at www.seattle.gov/mayor. Get the mayor’s inside view on efforts to promote transportation, public safety, economic opportunity and healthy communities by signing up for The Nickels Newsletter at www.seattle.gov/mayor/newsletter_signup.htm.

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Office of the Mayor