Critics pan tax on performers

Solarczyk said tax programs established in Missouri, California and Oregon had problems initially "because the entertainers were not really thrilled about having some of their gate receipts withheld."

But those rocky starts passed. "Right now, none of the states have any regrets in having done that," she said.

"At the start, for example, in California there were entertainers — and I was told Michael Jackson was one of them — who didn't want to lose any of his gate receipts to withholding. But apparently there are no problems. The entertainers have recognized that they are going to pay this."

However, California has not been very aggressive on enforcing the venue's withholding of the entertainers' tax if the entertainer balked. "They're not willing to shut down a show if the entertainer refuses," she said. "I guess it's still not totally perfect."

Missouri withholds at a 2 percent rate, while California negotiates with the entertainers to determine the withholding rate, Solarczyk said.

Employers in Utah for fewer than 60 days are not required to collect withholding for nonresidents. Typically, that applies to attorneys, expert witnesses, businessmen and construction workers, as well as athletes and entertainers.

As a result of the existing law, Solarczyk said, withholding occurs at the Utah Shakespearean Festival in Cedar City and the Pioneer Memorial Theater but not at the Delta Center.

But Sen. Allen wondered if "live performances" under any new law would include presentations like those by Sean Hannity and Michael Moore recently at Utah Valley State College or political events.

Solarczyk said Missouri does not require withholding for speakers at university events if they are free but withholds at 2 percent if admission is charged.

That state's definition of a professional entertainer qualifying for withholding is a person paid for vocal, instrumental, musical, comedy, dramatic, dance or other performance before a live audience. "You have to consider whether you go for just the professional, the semiprofessional or how far down you want to go," Solarczyk said.

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