707.03 ADMISSIONS EXEMPT FROM TAX.

   No tax shall be levied under this chapter with respect to any admission, all the proceeds of which inure:
(Ord. 116-2006. Passed 11-27-06.)

   (a)    Exclusively to the benefit of primary or secondary school, religious, educational or charitable institutions, societies or organizations; societies or organizations for the prevention of cruelty to children or animals; or societies or organizations conducted for the sole purpose of maintaining symphony orchestras and receiving substantial support from voluntary contributions, or of improving any municipal corporation, or of maintaining a co-operative or community center moving picture theatre or swimming pool, if no part of the net earnings thereof inures to the benefit of any private stockholder or individual;

   (b)    Exclusively to the benefit of persons in the military or naval forces of the United States, or National Guard organizations, reserve officer associations or posts or organizations, if such posts, organizations, units or societies are organized in the State of Ohio, and if no part of their net earnings inure to the benefit of any private stockholder or individual;

   (c)    Exclusively to the benefit of persons who have served in the military or naval forces of the United States and are in need;

   (d)    Exclusively to the benefit of the general revenue fund of any municipal corporation, or exclusively to the benefit of any fund of any municipal corporation under the control of a recreation commission. This exemption from the tax, however, shall not be allowed in cases wherein the admission price is one dollar ($1.00) or more;

   (e)    Exclusively to the benefit of an organization whose primary function is the sponsorship of amateur athletics, provided such organization is exempt from federal income taxation under subsection 501(a) and described in subsection 501(c)(3) of the Internal Revenue Code, and further provided that all revenue derived from the event for which admission is charged is, after payment of expenses incurred for such event, is actually used for the sponsorship of amateur athletics;

   (f)    Exclusively to the benefit of a political committee, campaign committee, or continuing association, as such terms are defined by Section 3517.01 of the Ohio Revised Code, provided that all such proceeds are duly reported in the manner required by Chapter 3517 of the Ohio Revised Code, and further provided that none of the proceeds are expended in a manner prohibited for such funds by any provision of Title 35 of the Ohio Revised Code.

   (g)    To any person or organization, whether for profit or otherwise, where the event for which a tuition fee is charged is an educational class, seminar, training sessions, or other similar event, whether or not such event is accompanied by any audio and/or visual aids;

   The exemption from tax provided by this Section shall, however, not be allowed in case of admissions to wrestling matches, prize fights, or boxing, sparring or other pugilistic matches or exhibitions, unless (1) such event is conducted exclusively for the benefit of those organizations set forth in subsection (b) hereof, or (2) all the contestants are amateurs and the entire proceeds from such event are devoted to a legitimate charitable purpose, excepting therefrom the necessary expenses, which shall in no event include payment to any contestant other than his necessary traveling expenses.

   The term "all the proceeds" means all the proceeds of the admissions and excess charges, as the case may be, after the payment of actual and reasonable expenses. If a non- exempt person or organization furnishing talent or services receives a percentage of the proceeds, without regard to the amount of such proceeds, the exemption is defeated.

   Immediately after the event for which an exemption from admission tax has been allowed, upon the demand of the Tax Administrator, the treasurer of the institution, society, or organization for whose benefit such event was held shall file an itemized statement with the Tax Administrator setting forth the amount of money actually received by such treasurer together with the expenses of promoting and conducting such event. Such statement shall be used as a basis of subsequent requests for exemption from admissions tax for the benefit of such institution, society or organization and if such statement shows a disproportionate expenditure for promoting and conducting of such event, in relation to the profits, if any, no such exemption shall thereafter be allowed to such institution, society or organization.

   The exemption from tax provided in this section shall be determined on the basis of each specific performance or event and shall not be allowed to any institution, society or organization which does not control the sale of admissions to the event for which the exemption is requested, nor shall any exemption be allowed where talent, services or other items are compensated for on a percentage basis unless the contract or agreement limits the amount to be received as percentage of the proceeds to a certain definite sum, and it is clearly established that such sum is not in excess of the flat rate ordinarily charged for the same talent, services or other items. There must be neither actual nor potential profits for promoters, entertainers, or others than the beneficiary in whose behalf the exemption is claimed.

(Ord. 105-1988. Passed 5-31-88.)