Listserve Archive
Question: As a result of a recent audit by the Wisconsin Revenue Service, we are faced with the potential finding that we would owe Wisconsin State Sales tax on the portion of all preferential seating donations (the 20% of the 80/20 rule) that are not tax deductible under IRS tax law. In addition, we would also owe State Sales Tax on the portion of all Suite and Club Seat payments that are not tax deductible (80/20 rule) under IRS tax law. As background we currently pay State Sales Tax on all ticket sales. My questions to the membership are as follows:
I would appreciate your responses. Our fear is if the State of Wisconsin takes this tax position, other States will follow citing Wisconsin as an example which could impact all of you. - Jamie Pollard, University of Wisconsin Responses: We do collect New York sales tax on all ticket sales. The preferential seating donation is not taxed. We do not have suites or clubs so I am not versed in this. We began collecting sales tax about 6 years ago when it became clear that tickets were not exempt in New York. - Judith Caserta, Canisius College 1. Do you pay State Sales Tax on the sale of your tickets or have you been granted an exemption by your State? Collect and remit sales tax - included in the price of the ticket 2. If you do pay State Sales Tax, are you required to pay State Sales Tax on any portion of your preferential seating donation - excluding the actual price of the ticket that may be included in your donation requirement? No 3. If you do pay State Sales Tax, are your required to pay State Sales Tax on any portion of a Club or Suite payment (after deducting the cost of the ticket price for any tickets included in the Suite)? No - only on the tickets - Susan Wachter, University of Kansas We do pay state sales tax on all tickets sold. At this time we are not paying sales tax on preferential seating donations. Not Applicable - Brad Bross, Drake University 1. We do pay State Sales Tax on tickets 2. Do not pay sales tax on donation for seating 3. NA - Catrina Gibson, University of Tulsa In Texas, sales tax is not due on the sale of an amusement service if the service is provided exclusively by an educational institution. - Nancy Post, Baylor University To all, Thank you for your responses. We had 31 responses to our questions concerning sales tax on tickets. As a reminder the questions we asked were as follows: 1. Do you pay State Sales Tax on the sale of your tickets or have you been granted an exemption by your State? 2. If you do pay State Sales Tax, are you required to pay State Sales Tax on any portion of your preferential seating donation - excluding the actual price of the ticket that may be included in your donation requirement? 3. If you do pay State Sales Tax, are your required to pay State Sales Tax on any portion of a Club or Suite payment (after deducting the cost of the ticket price for any tickets included in the Suite)? The responses to the questions are listed below.
(*) Do not pay state sales tax on tickets but do pay a local tax (city or county) on ticket sales. - Jamie Pollard, University of Wisconsin I think I need to clarify my answer on the sales tax question. Sales tax is included in the price of our tickets and we do remit it to the State of Kansas when it is collected. Sorry for the confusion. - Susan Wachter, University of Kansas
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