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City attorney proposes tightening admissions-tax language to clarify resellers and service charges
Summary
The chief deputy city attorney briefed council on planned clarifications to the admissions tax to address reseller platforms and service-charge treatment, and proposed a delayed effective date (early 2026) so the Commissioner's office can educate taxpayers and adjust assessments.
Adam Melita, chief deputy city attorney, briefed the council on Dec. 25 about proposed clarifications to Norfolk's admissions tax. Melita said the tax is a 10% excise tax dating to 1946 that was codified in the 1979 city code, and described a 2025 cleanup meant to make the tax work in the age of online resellers and intermediary ticket platforms.
Melita said the city previously revised the lodging tax to require online intermediaries to collect and remit that tax and that a similar approach was applied to admissions tax changes that took effect Jan. 1, 2025. He identified reseller platforms such as StubHub, SeatGeek and Eventbrite as examples of intermediaries that now often facilitate ticket sales and are therefore in the best position to capture and remit tax.
Melita proposed a further draft revision (not on the current agenda but available for docketing) that would tighten the definition of "place of amusement," clarify that participation in special ticketed sporting events (e.g., charitable fun runs or school athletic events where the participant pays to enter) should not be taxable for participants, and further clarify the portion of a ticket sale that is exempt as a service charge. He said the Commissioner's office requested a delayed effective date (suggested 01/01/2026 or 03/01/2026) so staff can notify and work with taxpayers.
Councilmembers asked about state statute limitations on service fees and whether the change would preserve exemptions for public-school sporting events; Melita said he would verify state-law alignment and that the school-event exemption appears to be preserved. Councilmembers also asked about ensuring ticketing agents and resellers (including Ticketmaster) collect appropriate taxes; Melita said all sellers and resellers selling tickets to places of amusement would be required to collect and remit.
Melita said staff will work with the Commissioner's office and communications staff to broadly socialize changes to avoid confusion. The council did not vote on an ordinance during the work session; Melita suggested the revision could be docketed when management is ready.
