New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter A - Sales And Use Taxes
Part 527 - Taxable Transactions
Section 527.10 - Admission charge
Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, § 1105(f)(1)
(a) Imposition.
For any person having the permanent use or possession of a box or seat or a lease or a license, other than a season ticket, for the use of a box or seat at a place of amusement, the tax shall be upon the amount for which a similar box or seat is sold for each performance or exhibition at which the box or seat is used or reserved by the holder, licensee or lessee, and shall be paid by the holder, license or lessee. This includes situations in which there is an exclusive right to use a particular box or seat for an indefinite term, or for the term of a lease or license (for every attraction and event subject to tax) presented at the place of amusement.
(b) Definitions.
Example 1:
Admission to a zoo operated by a private company is an admission to a place of amusement and is taxable if in excess of 10¢.
Example 2:
An admission charge includes 75¢ per ticket for parking whether the patron does or does not avail himself of the parking privilege. This charge is shown as a separate item on every ticket. The parking charge is considered a part of the admission charge whether it is separately stated or not. Consequently, if the admission is not taxable, neither is the service charge.
Example 3:
An arena sponsors a show in which trainers conduct various routines with animals, such as trained bears or horses. The admission charge is taxable.
Example 4:
An admission charge to a trade show such as a boat, auto or horse show which is open to the public is an admission charge for entertainment or amusement.
Example 5:
An operator of a carousel mounted on a truck chassis travels throughout a city selling rides for 20¢ each. The charge is taxable as the use of an amusement facility.
Any admission charge to a theater, opera house, concert hall or other hall or place of assembly for a live dramatic, choreographic or musical performance.
Any place where any facilities for entertainment, amusement, or sports are provided. Such places include without limitation (i) a theatre of any kind, concert hall, opera house, or other place where a performance is given; (ii) fairground or exhibition hall or grounds (iii) golf course, athletic field, sporting arena, gymnasium, bowling alley, shooting gallery, swimming pool, bathing beach, skating rink, tennis court, handball court, billiard hall or other place for athletic exhibits; (iv) "penny arcades"; any room which includes ping pong tables and amusement devices, and any amusement device, carousel, miniature fair, ferris wheel and other amusement rides, whether or not contained in an enclosure.
Cross reference:
See section 527.10(a)(2) and section 527.12 of this Part.
Cross reference:
See section 533.3 of this Title for information returns by lessors.
Cross reference:
See section 526.11 of this Title.
(c) Computation.
Example 1:
An amusement park operator does not charge admission to the park but sells tickets for rides at 25¢ each or a book of six tickets for $1.00. The charge for the single tickets is taxable at the price of 25¢ and the charge for the book is taxable at the purchase price of the book.
Example 2:
An amusement park operator sells tickets at 10¢ each, but each admission requires the use of more than one ticket. The sale of the tickets is taxable as an admission charge in excess of 10¢
Example 3:
A season ticket holder pays $40 for a season ticket, entitling him to attend all home games of a professional football team. The tax is computed on the $40 admission, whether or not the holder attends the games, and regardless of the price at which the seat would have been sold for individual games.
Example 4:
A summer theatre has 10 events during he summer, two of which are subject to tax. The tickets for each event sell for $10 each or an individual may purchase a season ticket for $80 (20% discount). The tax on the season ticket is to be computed on $16, $20 less the 20% discount.
Example 5:
The X Coliseum has four events during a reporting quarter. The charge for a seat, similar to that held by an individual under a permanent use arrangement, at each of the performances is as follows:
| Rodeo | $10.00 |
| Basketball Game | 5.00 |
| Musical Comedy | 15.00 |
| Boxing Match | 30.00 |
The individual is required to pay a tax on the $10.00 admission to the rodeo and the $5.00 admission to the basketball game, whether or not he attends. No tax is due on the admission to the musical comedy or the boxing match since these events are not subject to the tax on admissions.
Example 6:
A corporation owning a stadium gives the exclusive right to the permanent use of a particular box for a year to each stockholder owning a certain number of shares. Since the stockholder has exclusive use of the box for the period, the tax applies to the amount for which a similar box or seat sold for each taxable performance or exhibition at which the box or seat is used or reserved by the stockholder and shall be paid by the stockholder.
(d) Admissions excluded from tax.
Example 1:
An admission charge to a horse racing track is not subject to tax since it is subject to the New York State pari-mutuel tax.
Example 2:
Charge for admissions from closed circuit television broadcasts of boxing matches which originate within New York State are not subject to tax as such admissions are taxed by the New York State Athletic Commission.
Example 3:
An organization sponsors a blue grass festival in which country singers and instrumentalists will perform. The admissions are exempt since they are admissions to a musical arts performance.
Example 4:
A theatre in the round has a show which consists exclusively of dance routines. The admission is exempt since choreography is included within the term musical arts.
Example 5:
A show is composed of several acts in which performers dressed as story-book characters, appearing with musical accompaniment, portray scenes from books, and invite audience participation. This does not qualify as a dramatic or musical arts presentation.
Example 6:
Admission charges for the use of bowling lanes and swimming pools are not subject to tax. However, any charge for the use of tangible personal property in conjunction with the sporting activity is taxable. Included as taxable would be bowling shoes, towel and locker rentals.
Example 7:
A ski resort's charge for lift tickets is an exempt admission charge to a sporting facility in which the patron will be a participant. If the facility charges for the use of skis or other equipment, such charge is for the rental of tangible personal property which is subject to tax.
Example 8:
An admission charge, separate from the entry fee, for a stock car driver and his crew to enter a race is an admission to a participating sport.
(e) Exempt admissions.
Example 1:
A chamber of commerce charges $1.50 admission to a dance it sponsors for the purpose of raising money, all of which will be given to City A for the purchase of playground equipment. The admission charge of $1.50 is taxable.
Example 2:
All facts are the same as in example 1, except that the money will be turned over to the American Red Cross. The $1.50 admission charge is exempt.
Example 3:
All the facts are the same as in example 1, except the the money will be turned over to a war veterans post. The $1.50 admission charge is exempt.
Example 4:
All the facts are the same as in example 1, except that the money is turned over to an organization formed solely to maintain a symphony orchestra from donations. The $1.50 admission charge is exempt.
Example 5:
The employees of radio station R challenge the employees of television station T to a softball game. Spectators are charged $1.50 admission. All proceeds from the game are to be given to a local high school for its benefit. The $1.50 admission charge is exempt.
Example 6:
All the facts are the same as in example 5, except that the proceeds of the game will be given to the United Fund. The $1.50 admission charge is taxable.
Example 7:
Admission charges to a basketball game between two high schools inure exclusively to the benefit of the school. Such admission charges are exempt.
Example 8:
A business organization arranges for a football game between two high schools. Spectators are charged $1 admission. The entire proceeds from the game will be given to the United Fund. The $1 admission charge is exempt.
Example 9:
An exempt organization hires a carnival operator to operate a series of games and rides. The operator charges admission and divides the net proceeds with the exempt organization. Since the operator will receive compensation, the admission charges to the carnival are subject to tax.
Example 10:
A nonprofit educational organization described in section 529.7 of this Title and exempt under section 1116(a)(4) of the Tax Law operates a school for the instruction and training of acrobats, clowns and other circus performers. It also operates a circus for the purpose of providing practical experience to its students. The entire net profit from the admission charges to the circus inures to the benefit of the exempt organization. The admission charges are exempt even though professional performers participate for compensation.
Example 11:
A county agricultural society sponsors an agricultural fair with all of the proceeds being used for maintenance and upkeep of the fairgrounds. The admission charge is not subject to tax.
Example 12:
In addition to example 11, the fair has separate grandstand admissions in which only those who purchase the additional admission are entitled to view a stock-car race. The grandstand admission charge is subject to tax.
Example 13:
If a county fair has a grandstand show in which all those who purchased a general admission are permitted to view the event, the admission is exempt.
Example 14:
If, in example 13, all those who purchased a general admission are permitted to view the event free, and for a separate charge some of the viewers obtain superior seats, the additional charge is not considered an admission charge.
Example 15:
An individual who owns an historically significant home allows a local historical society to use the home and charge admission to it. All of the admission charges will be given to the society for the furtherance of its purposes. The admission charges are not subject to tax.
