LR 8361
Taxability of Concession Sales by Municipalities
September 15, 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 June 1, 2025.
The facts as presented in your letter ruling request are summarized as follows:
Applicant is a municipality that operates an Aquatics Center, Community Center, parks, and various recreational events sponsored by the City's Parks and Recreation Department. Applicant sells concessions and other items in conjunction with Park sponsored activities. All proceeds from any such sales are used solely for the benefit of the Department and/or the municipality. The city has not entered into any revenue sharing agreements related to the sale of any of the aforementioned items.
ISSUE:
Are Applicant's sales of concessions and other items of tangible personal property subject to sales tax?
RESPONSE:
No. Applicant's sales of concessions and other items of tangible personal property are not subject to sales tax.
Section 144.020.1, RSMo, imposes a sales tax on 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[.]"
Sales of tangible personal property are subject to tax unless a specific exemption applies, and tax exemptions and exclusions are strictly construed against the taxpayer, with any doubt to be resolved in favor of the tax.
Section 144.030.2(17), RSMo, provides, that "all 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 [...] owned or operated by a municipality or other political subdivision where all the proceeds derived therefrom benefit the municipality or other political subdivision [...]" are not subject to sales taxes.
The exemption contained in Section 144.030.2(17) applies to all fees paid by individuals in a place of amusement and therefore exempts the city's sales of tangible personal property. City of Jefferson v. Director of Revenue, 1992 WL 390471 (AHC No. 92-000424RV). (A prior case holding the opposite was reversed by legislative amendment.)
Applicant is a political subdivision that owns the Aquatics Center and Community Center, and it hosts various recreational events organized by its Parks and Recreation Department. All of the proceeds from the sales at the Aquatics Center, Community Center, parks, and the various recreational events it hosts only benefit Applicant. Therefore, Applicant's sales of concessions and other items of tangible personal property are not subject to sales tax pursuant to Section 144.030.2(17), RSMo.
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,
Trish Vincent