Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
138.480,
139.010,
139.200,
139.260,
139.470,
139.480,
139.482,
139.495,
139.498,
229.031
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
Department of Revenue to promulgate administrative regulations necessary for
the administration and enforcement of all tax laws in Kentucky. This
administrative regulation establishes sales and use tax requirements for sale
of admissions.
Section 1. Definition.
"Admissions" is defined by
KRS
139.010(1).
Section 2. Excluded Admissions. The
admissions listed in this section are specifically excluded from sales tax by
statute:
(1) Admissions to race tracks upon
which tax is levied under
KRS
138.480;
(2) Admission fees paid to enter or
participate in a fishing tournament or for the use of a boat ramp as provided
by
KRS
139.010(1)(b);
(3) Admissions to historical sites defined by
KRS
139.482(1);
(4) Admissions charged by nonprofit
educational, charitable, or religious institutions exempt under
KRS
139.495(2)(a) 5;
(5) Admissions charged by nonprofit civic,
governmental, or other nonprofit organizations exempt under
KRS
139.498(1)(a); and
(6) Admissions to unarmed combat shows such
as boxing and wrestling shows taxed under
KRS
229.031(1).
Section 3. Nontaxable Fees.
(1)
(a)
Fees for instruction (tuition, registration fees, or ticket charges paid to
attend instructional seminars, conferences, or workshops) shall not be
considered the taxable sale of admissions if the primary intent of the program
is for education rather than entertainment. Separate charges for meals, books,
recordings, or other materials sold at or in conjunction with instructional
seminars, conferences, or workshops shall be subject to sales and use tax
unless an applicable exemption applies.
(b) Examples of nontaxable instructional
seminars, conferences, or workshops include:
1. Art classes, including painting and
pottery;
2. Certified training
programs for lifeguard certification classes;
3. Classes providing continuing education
credits;
4. Classes to obtain a
professional designation, such as a Certified Public Accountant, Registered
Nurse, or Registered Land Surveyor;
5. Dance lessons;
6. Instructor-led recreational training, such
as swimming classes, fitness classes, golf lessons, and personal trainer
exercise instruction;
7. Music
lessons;
8. Summer resident camps
and day camps; or
9. Team
memberships fees that include athletic training skills for youth.
(2) Other non-taxable
fees include:
(a) Day care and child care
facility fees;
(b) Driver's
license, hunting license, and fishing license fees;
(c) General facility rentals, such as
conference rooms, ballrooms, and temporary storage facilities; or
(d) Professional and fraternal order
membership fees.
Section
4. Taxable Admissions. The list in this section shall serve as
examples of admissions charges that are subject to the tax either as a payment
for the right of entrance, payment for the privilege of using facilities, or
payment to participate in an event or activity. These same charges made by an
Internal Revenue Code 501(c)(3) charitable, religious, or educational
organization, nonprofit civic organization, governmental organization, and all
other nonprofit organizations are exempt under the provisions of
KRS
139.495 and
KRS
139.498:
(1) Amusement park entrance and ride
charges;
(2) Art
exhibits;
(3) Auditoriums where
lectures and concerts are given for entertainment purposes;
(4) Bars with cover charges;
(5) Baseball parks;
(6) Bowling center rentals and fees to
participate in games;
(7) Box
seats;
(8) Dance halls;
(9) Disc golf courses;
(10) Fitness and recreational sports
centers;
(11) Golf
courses;
(12) Gymnasiums;
(13) Health spas;
(14) Indoor and outdoor play spaces such as
arcade games, ball pits, inflatables, obstacle courses, rides, slides, and
other similar activities;
(15)
Locker rentals at recreational facilities;
(16) Miniature golf fees;
(17) Movie theatres;
(18) Museums;
(19) National park facilities that are
operated under lease by a for-profit entity;
(20) Night clubs;
(21) Race tracks not taxed under
KRS
138.480;
(22) Simulcast facilities;
(23) Shooting ranges and gun clubs;
(24) Skating rink rentals and fees to
participate in activities;
(25)
Skiing charges;
(26) Sports league
fees to participate in games;
(27)
Street fairs;
(28) Swimming pool
rentals and fees to participate in activities;
(29) Tennis court rentals and fees to
participate in activities;
(30)
Theaters; or
(31) Weight training
facilities.
Section 5.
No Resale of Admissions. Sales of admissions are not eligible for the resale
exemption according to the provisions of
KRS
139.260.
Section 6. Ticketing.
(1)
(a) If
the tax is included in the total price, a statement shall appear on the ticket
to the effect that the sales tax is included in the price unless the tax is
separately stated on a sign posted in a conspicuous place at the ticket window
and all sales are made at the ticket window. For online sales, a prominent
statement on the website may substitute for a statement on the ticket
itself.
(b) If the tax is not
included in the total price, a receipt shall be given showing that the sales
tax was charged and separately stated.
(2) Each admission shall be a separate
sale.
(3) Complimentary passes
provided by the person conducting the event are not subject to the
tax.
(4) Separately stated event
sponsorships and advertising that do not include admission to an event are not
subject to the tax.
Section
7. Required Payments. Payments that are required as a prerequisite
for admission, even if designated as a donation, shall be subject to tax.
Section 8.
(1) This administrative regulation shall
replace Revenue Circular 51C001-S6 and Revenue Policies 51P396 and
51P400.
(2) Revenue Circular
51C001-S6 and Revenue Policies 51P396 and 51P400 are hereby rescinded and shall
be null, void, and unenforceable.
STATUTORY AUTHORITY:
KRS
131.130(1)