LR 8314
Admission Charges to Baseball Field Complex Are Subject to Sales Tax
August 30, 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 July 2, 2024.
The facts as presented in your letter ruling request are summarized as follows:
Applicant manages and oversees a baseball field complex where they charge teams and organizations to use the fields for practices, games, and events. Applicant already charges sales tax on admission to the facility for spectators for the practices and games.
ISSUE:
Are Applicant’s charges to teams and organizations for the use of their baseball fields for practices, games, and events subject to Missouri sales tax?
RESPONSE:
Yes. Applicant’s charges to teams and organizations for the use of their baseball fields for practices, games, and events are subject to Missouri sales tax.
Section 144.020.1, RSMo, imposes a sales tax upon all sellers engaging in the business of selling tangible personal property or rendering taxable service at retail in this state.
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, except amounts paid for any instructional class[.]
Applicant already correctly charges sales tax on the admission to their facility in accordance with the statute. Additionally, the charges paid to the Applicant for the rental of their facility is considered a fee paid to a place of games and athletic events. Therefore, they should charge sales tax on the rental fee.
‘…the sales tax also is imposed on such other fees paid to or in such establishments. That simple general language is not limited or qualified in any way. It applies to all such fees paid to or in such establishments. It says nothing about excluding therefrom any fees paid for participating in sports or events in said establishments.’ Blue Springs Bowl v. Spradling, 551 S.W.2d 596 (Mo., 1977).
As the Supreme Court observes in Blue Springs, these types of fees are not limited or qualified in any way. Applicant is an establishment for games and athletic events, and the organizations renting it for games, practices, and events pay a fee to Applicant as required by the statute.
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 65105-0475, phone (573) 751-0961.
Sincerely,
Wayne Wallingford