In this five-part series, we will discuss the application of sales tax to popular summer destinations and activities.
Introduction
School’s out, so it’s time to hit the road (or skies, or whatever…just get there)! Summer is a time when many people travel and visit places like amusement parks, museums, and other destinations. As with other business activities, the operators of these venues need to be aware of their tax obligations (and it helps the Griswolds better plan the vacation budget).
Part 3 – Sales Tax At Museums
Exploring Museums: What You Need to Know About Admissions and Sales Tax
Museums are great places to see and learn about many things, from famous works of art to dinosaur fossils. As with other destinations, there are admission fees and other potentially taxable expenses to consider.
State and Local Sales Taxes on Museum Admissions
Museum goers should first be aware of the applicability of general state and local sales taxes as well as admissions and amusement specific taxes. Admissions to museums in New York and Florida are taxable at the state level, while Chicago has a city level tax on admissions. On the other hand, Virginia does not tax museum admissions. Florida also includes museums in some of its sales tax holidays, exempting admissions in the state for a short period of time.
Additional Taxable Expenses During Museum Visits
Beyond the cost of admission itself, there are many other things involved in a visit to which sales tax may apply. Consider the Smithsonian museums in Washington DC. Admission to these highly prestigious museums is free, so it is obviously not taxed. However, our nation’s capital does have a tax on parking. Likewise, sales tax may be charged on purchases of food and souvenirs at gift shops.
Navigating Sales Tax Complexities with Clarus Partners
Clarus Partners can help navigate the complexities of sales tax issues like these, reach out to us today!
In our next article in this series, we will discuss sporting events.
Summer Travel Series 2024