Chicago Taxes Entry Fees
The City of Chicago will levy an 8% tax on race entry fees collected by for-profit organizations that produce running events in 2007 (not-for-profits are exempt).
The fee will automatically be added onto registration forms. Online companies are scrambling to modify software to allow collection of the required tax.
Such popular events as The LaSalle Bank Chicago Marathon, Banco Popular Half-Marathon, and Chicago Distance Classic, already socked with added permit fees, will now have to assess entrants the new tax as well.
Runners have been griping for some time about the high cost of race participation in Chicago and some events may consider moving to suburban venues where government fees are lower. Unfortunately for event producers, many runners (but not a majority) live within city limits and don't own cars, and are often loathe to travel to suburban locations on public transportation.
Message for big city races: Watch out! Big cities looking for ways to raise revenue without raising taxes consider special events a prime source for filling city coffers. Furthermore, the abundance of large cultural and sporting events in big cities makes the loss of road races far less significant than would be the case in smaller towns.