Johnstown council explores giving businesses breaks on amusement taxes due to COVID-19

Apr. 15—The City of Johnstown collected approximately $26,000 in amusement/admissions taxes during 2020.

But COVID-19 restrictions often kept bar and restaurant owners who were billed fees on pool tables, dart boards and jukeboxes from using those money-making items to generate funds.

So some owners are asking if a refund could be made or if the money could be put toward their 2021 taxes.

"Over half a year last year, they paid the tax and didn't get to use them because you weren't allowed in the buildings," said Johnstown City Councilman Chuck Arnone, owner of TnC's Lounge. "You weren't allowed to have anybody operate them. You weren't even allowed to touch a jukebox."

City Council is going to explore options, but what can be done, if anything, is not clear yet.

"I can't imagine that's an arbitrary thing that council could impose, uniform or otherwise," new interim City Manager Daniel Penatzer said. "We can present council with the facts. I've got to believe that any abatement, forgiveness, anything, would take council (to do)."

Johnstown budgeted $26,000 in amusement/admissions taxes for 2021.

"We had started collections this year and then we had a series of complaints that had come in, so we actually had paused that process," Community and Economic Development Director John Dubnansky said. "Then it got a little bit better. We're going to readdress that here."

Finance Director Robert Ritter added: "We're still sort of working on it now."

Johnstown is set to receive an estimated $32.2 million in American Rescue Plan funds for pandemic recovery assistance. That money, however, cannot be used to offset a tax break.

Dave Sutor is a reporter for The Tribune-Democrat.