Published: July 24, 2024

Summer Travel Series
Part 2: National Parks

National Park to Show Sales Tax At National Parks

In this five-part series, we will discuss the application of sales tax to popular summer destinations and activities.

Part 1: Amusement Parks

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 2 – Sales Tax at National Parks

Exploring Our Great National Parks This Summer

In the second part of our summer travel series, we’re discussing our great national parks. Summer weather is great for spending time outdoors, and our country’s extensive network of national parks offers many great opportunities to do so. Although park admissions are generally exempt from taxation (most are free!), things like food, lodging, tours, and equipment rentals may be treated differently.

Understanding Tax Exemptions for National Parks

Under federal law, transactions by the National Park Foundation are exempt from state and local taxation. Many state and local jurisdictions who levy admissions taxes also exempt 501(c)(3) nonprofits, which includes national parks. However, this exemption does not extend to private entities, including those acting as government contractors.

Private Vendor Transactions Within National Parks

For instance, a visitor to the Grand Canyon stays at a campsite, takes guided tours, and buys concessions, all run by private vendors within the park. The visitor would pay the state and local rates on all those purchases except the park admission itself.

State-Specific Tax Examples of Sales Tax at National Parks

Montana, home to Glacier National Park and part of Yellowstone, does not have a general sales tax. However, Montana has a lodging tax that includes stays at campgrounds, as well as local resort taxes. Both apply within their respective jurisdictions inside and outside the parks. Tours of California’s Yosemite National Park are exempt, although taxes apply to lodging via local taxes.

Pay Attention to Travel Packages

As mentioned in our previous article, pay attention to what’s in travel packages and how they are invoiced. Items can be treated differently depending on how they are invoiced and the jurisdiction’s sourcing rule and general treatment of tour companies.

State Parks vs. National Parks

It should also be mentioned that although national park admissions are not taxable, sales tax may apply to state parks. For instance, Florida applies sales tax to admissions into its state parks.

Clarus Partners Can Help With Sales Tax at National Parks

Clarus Partners can help navigate the complexities of sales tax at national parks so you and your customers can spend more time enjoying the great outdoors and not worrying about tax! You can reach out to our team here!

In the next article in this series, we will discuss taxes related to museums.

Summer Travel Series 2024