Sales of Concessions by Cities FAQs

No, municipalities or other political subdivisions sales of concessions are not subject to sales tax. Section 144.020.1, RSMo., imposes a sales tax on retail sales of tangible personal property and certain enumerated services. Section 144.020.1(2), RSMo., provides “[a] tax equivalent to four percent of the amount paid for admission and seating accommodations, or fees paid to, or in any place of amusement, entertainment or recreation, games and athletic events[.]”

Section 144.030.2(17) RSMo., exempts from sales tax “Amounts paid or charged for admission or participation or other fees paid by or other charges to individuals in or for any place of amusement, entertainment or recreation, games or athletic events, including museums, fairs, zoos and planetariums, owned or operated by a municipality or other political subdivision where all the proceeds derived therefrom benefit the municipality or other political subdivision and do not inure to any private person, firm, or corporation, provided, however, that a municipality or other political subdivision may enter into revenue-sharing agreements with private persons, firms, or corporations providing goods or services, including management services, in or for the place of amusement, entertainment or recreation, games or athletic events, and provided further that nothing in this subdivision shall exempt from tax any amounts retained by any private person, firm, or corporation under such revenue sharing agreement[.]”

Municipalities or other political subdivisions may own and operate facilities such as Aquatic Centers, Community Centers, or similar entities, and may also host various recreational events through their Parks and Recreation Department. All proceeds from sales at these facilities only benefit the municipality or political subdivision. Therefore, municipality or political subdivisions’ sales of concessions and other items of tangible personal property are not subject to sales tax pursuant to Section 144.030.2(17), RSMo.