Branson/Lakes Area Tourism Community Enhancement District Sales Tax
The Branson/Lakes Area Tourism Community Enhancement District Sales Tax (TCED) is a 1% sales tax that is authorized by Section 67.1959, RSMo. The purpose of this tax is to promote tourism in the Branson/Lakes area. Voters approved the sales tax in the November 2005 election and the sales tax became effective April 1, 2006.
The district encompasses most of the City of Branson, all of the Village of Indian Point, and portions of both Taney and Stone counties. There are no businesses currently registered in the area of Branson that are not located in the district.
For the most part, the TCED is no different than any other local sales tax authorized by Missouri Statute. However, it does contain several provisions that impact the way in which businesses will collect and remit the tax to the department.
First, the TCED contains several exemptions to the local tax that are generally not authorized under other local sales tax statutes and in some instances, Missouri state sales tax law. Specifically, the TCED is exempt from sales of:
- Motor vehicles, new, used, and leased
- Trailers
- Boats
- Outboard motors
- Utilities
- Telephone service
- Wireless telephone service
- Funeral services
- Food, as defined in Section 144.014, RSMo.
Additionally, the Branson/Lakes Area Tourism Enhancement District Sales Tax is reduced by 25% of the local tourism taxes imposed by the City of Branson. There are two local tourism taxes to which this applies.
The first is the 4% tax imposed under the authorization of Section 94.802, RSMo. This 4% tax for which the new sales tax can be reduced includes:
- Charges for room accommodations at hotels, motels, condominium units, time share interest in condominiums, campgrounds and tourist courts
- Admissions to amusement parks, carnivals, circuses, fairs and water parks
- Admissions to aerial tramways
- Admissions to commercial animal, reptile and zoological exhibits
- Admissions to commercial beaches and hot springs
- Admissions to go-cart and miniature golf establishments
- Admissions to horse shows and rodeos
- Admissions to rides on airplanes, helicopters, balloons, gliders, parachutes and bungee jumps
- Admissions to automobile, bicycle, dog, horse and other racing events
- Admissions to music shows and pageants, movie theaters and live theaters
- Admissions to sporting events
The resulting 25% reduction in tax means that the TCED will not apply to these sales. Twenty-five percent of the 4% tax imposed by Section 94.802 is 1%. Because the tax on these sales are reduced by 1%, the TCED will not apply. (1% minus 1% = 0%)
The second is the 1/2% tax imposed under the authorization of Section 94.805, RSMo. This 1/2% tax for which the new sales tax can be reduced includes sales of:
- Food and drinks sold on premises of restaurant establishments
- Alcoholic drinks sold for consumption on the premises of establishments licensed by the Missouri Division of Liquor Control
Therefore, these charges will be subject to a reduced Branson/Lakes Area Tourism Enhancement District Sales Tax rate of 7/8% because 25% of the 1/2% tax imposed under Section 94.805, RSMo. is 1/8%, the amount by which they may reduce the Branson/Lakes Area Tourism Enhancement District Sales Tax. (1% - 1/8% = 7/8%)
Many of these establishments also make sales of items that are not exempt or partially exempt from the Branson/Lakes Area Tourism Enhancement District Sales Tax. Therefore, these businesses will be required to collect and report their sales at different sales tax rates, depending on the item that is sold.
For example, a Branson hotel may have a gift shop that also sells snacks and bottled soda. In this example, the hotel will have to collect and remit tax at three different rates.
- It will collect and remit tax on charges for rooms at a rate that excludes the 1% Branson/Lakes Area Tourism Enhancement District Sales Tax.
- The gift shop sales will include the 1% Branson/Lakes Area Tourism Enhancement District Sales Tax.
- The tax collected on charges for the snacks and sodas would be at a third rate, excluding both the 1% Branson/Lakes Area Tourism Enhancement District Sales Tax and the 3% of the state tax exempt pursuant to Section 144.014, RSMo.
Here are the different sales tax rates for the Branson Area:
| Branson | Indian Point(Includes the Southern Stone County Fire District) | Stone County (Includes the Fire District) | Taney County | Branson Hills Community Improvement District | Silver Dollar City (Includes the Fire District) | Historic Downtown Branson Community Improvement District | Branson Hills Infrastructure Facilities Community Improvement District | |
|---|---|---|---|---|---|---|---|---|
| Base District Rate | 8.600% | 8.975% | 7.475% | 7.10% | 9.10% | 7.475% | 9.10% | 9.10% |
| Food Exempt Pursuant
to Section 144.014, RSMo. |
4.60% | 4.975% | 3.475% | 3.10% | 5.10% | 3.475% | 5.10% | 5.10% |
| Hotel/Overnight Theater & Amusement 94.802, RSMo. |
7.60% | NA | NA | NA | 8.10% | 6.475% | 8.10% | 8.10% |
| Restaurant and Beverages 94.805, RSMo. |
8.475% | NA | NA | NA | 8.975% | 7.350% | 8.975% | 8.975% |
| District Exempt Items | 7.60% | 7.975% | 6.475% | 6.10% | 8.10% | 6.475% | 8.10% | 8.10% |
Because there are varying rates, a taxpayer selling items subject to a rate other than the base district rate will have to report these sales on a separate line. Each line will contain a unique description under the business location and a unique code corresponding to that location. They are as follows:
| Category | Business Location | Code |
|---|---|---|
| Food Exempt Pursuant to Section 144.014, RSMo. | Food Tax TCED | FD04 |
| Restaurant and Beverages 94.805, RSMo. | Drink/Food Branson | RS02 |
| Hotel/Overnight Theater & Amusement 94.802, RSMo. and District Exempt Items | Branson TCED Exempt | TR01 |
For questions regarding these and other sales and/or use tax issues, email us at: salesuse@dor.mo.gov