LR 8278
Taxability of Ticket Sales
January 04, 2024
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 October 12, 2023.
The facts as presented in your letter ruling request are summarized as follows:
Applicant is an entertainment performance venue in Missouri which hosts music concerts and variety shows. Two musical entertainment groups will rent and perform at the theatre at different times. According to an agreement between Applicant and the musical entertainment groups, the groups will be responsible for reporting and remitting sales tax to the Department. The Groups will pay rent to Applicant, which will include the cost of personnel services. Applicant will collect and deposit into Applicant's bank account all admission revenue received from its ticket sales, including monies from credit cards, cash, and checks. Applicant will transfer 100% of the revenue it receives to the musical entertainment groups' bank accounts. The musical entertainment groups will collect and deposit to its bank account all of the admission revenue it receives from vouchers and other group sales. The musical entertainment groups will report all admission revenue on its financial statements and income tax returns.
ISSUE:
Is Applicant responsible for collecting sales tax on its ticket sales?
RESPONSE:
Yes. Applicant is responsible for collecting sales tax on its ticket sales. The musical entertainment groups are responsible for remitting the sales tax to the Department of Revenue.
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, except amounts paid for any instructional class."
Under Section 144.010.1(13)(a), RSMo, a "sale at retail" includes "[s]ales of admission tickets, cash admissions, charges and fees to or in places of amusement, entertainment and recreation, games and athletic events, except amounts paid for any instructional class."
Section 144.021, RSMo, provides in relevant part: "...the primary tax burden is placed upon the seller making the taxable sales of property or service and is levied at the rate provided for in section 144.020."
Applicant is renting its facility to the musical entertainment groups and providing the service of selling tickets. The facility is a place of amusement and sales for admission are subject to sales tax. All the proceeds of Applicant's ticket sales are transferred to the musical entertainment groups' bank account. Applicant is acting on behalf of the musical entertainment groups. Therefore, Applicant should collect sales tax on its sales of tickets. The musical entertainment groups should remit to the Department of Revenue sales tax on all sales of tickets.
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 Associate Counsel J. Ross Shelton, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 651050475 (phone 5737510961), or me.
Sincerely,
Wayne Wallingford