LR 8196
Tickets Sold by Out-of-State Broker Not Subject to Missouri Sales Tax
June 02, 2022
Dear Applicant:
This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated April 4, 2022.
The facts as presented in your letter ruling request and in a conversation with Senior Counsel Thomas A. Houdek are summarized as follows. The following facts have not changed since the Department issued the previous letter ruling on October 11, 2018:
Applicant is a ticket broker located outside Missouri. Applicant acquires and sells tickets to events located within and outside of Missouri. Applicant is unaffiliated with the places of amusement and entertainment from which it buys tickets. Applicant purchases all tickets from individuals and venues that contact the Applicant in order to sell tickets ranging from below face value to above face value. The tickets are then typically sold to individuals. Most of the individuals reside in Kansas with some residing in Missouri. Tickets are either picked up at Applicant's Kansas office or shipped through regular mail or Federal Express to the location requested by the purchaser.
ISSUE 1:
Is Applicant required to collect and remit Missouri sales tax on its sales of event tickets?
RESPONSE 1:
No. Applicant is not required to collect and remit Missouri sales taxes on its sales of event tickets.
Section 144.020.1(2), RSMo, imposes a tax upon "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 144.018.2, RSMo, provides in relevant part:
A place of amusement, entertainment or recreation, including games or athletic events, shall remit tax on the amount paid for admissions or seating accommodations, or fees paid to, or in such place of amusement, entertainment or recreation. Any subsequent sale of such admissions or seating accommodations shall not be subject to tax if the initial sale was an arms' length transaction for fair market value with an unaffiliated entity.
The places of amusement and entertainment are required to collect and remit sales tax on their sales of tickets to Applicant. Applicant is unaffiliated with the places of amusement and entertainment from which it buys tickets. Applicant purchases all tickets in arms' length transactions for fair market value. Therefore, Applicant's subsequent sales of tickets to its customers are not subject to sales tax because the initial sales to the Applicant were at arms' length for fair market value with an unaffiliated entity. Applicant should pay sales tax on its purchases of the tickets.
ISSUE 2:
Is Applicant required to collect and remit Missouri use taxes on its sales of event tickets?
RESPONSE 2:
No. Applicant is not required to collect and remit Missouri use taxes on its sales of event tickets.
The use tax under Section 144.610.1, RSMo, is imposed upon the sale price of the tangible personal property stored, used, or consumed in Missouri. See Response 1.
This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals. If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change. For this reason, the interpretation set forth above should be reviewed on a regular basis. Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.
Should additional information be needed, please contact Senior Counsel Thomas A. Houdek, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, (573) 751-0961.
Sincerely,
Wayne Wallingford