LR 8356
Taxability of Tickets Sold for Missouri Events
April 30, 2025
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 February 10, 2025.
The facts as presented in your letter ruling request are summarized as follows:
Applicant is a ticket broker located in Kansas. In connection therewith, Applicant sells tickets to events within the State of Missouri. With respect to the acquisition of tickets for Missouri events, Applicant typically purchases from individuals who approach the business. Applicant will also buy and sell tickets from venues that contact Applicant. The purchase price of said tickets ranges from below face value to above face value. Additionally, Applicant, as the ticket broker, typically does not collect any other end user charges except for shipping/delivery costs.
For Missouri events, tickets are typically sold to individuals. Most of these individuals reside in Missouri and some reside in Kansas. Tickets are commonly picked up in person at the Kansas office, are shipped to the individual purchaser, or are transferred online from Applicant to the individual 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:
[…] [T]he amount paid for admission and seating accommodations, or fees paid to, or in a place of amusement, entertainment or recreation[.]
Section 144.018.2 provides:
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.
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 Associate Counsel J. Ross Shelton, General Counsel’s Office, Post Office Box 475, Jefferson City, Missouri 65105-0475 (phone 573-751-0961), or me.
Sincerely,
Trish Vincent