In this five-part series, we will discuss the application of sales tax to popular summer destinations and activities.
The Tax Implications Of Sporting Events
As fall approaches, many of us find ourselves in the midst of baseball season and gearing up for football. Whether you’re planning a trip to catch a game this summer or later in the year, understanding how sales tax applies to sporting events is essential.
Sales Tax On Admission: Varying State Laws
General Overview
Many states impose sales tax on admissions to sporting events, but the specifics vary widely depending on the state:
- Florida and Texas: Both states impose sales tax on admissions to sporting events.
- Nevada: Exempts admissions to events for organizations based within the state.
- Ohio: No statewide tax on admissions, but cities like Columbus, Cincinnati, and Cleveland have their own local taxes.
Exemptions And Special Considerations
City And State Exemptions
- Columbus, Ohio: Exempts events that benefit educational institutions, except those held by the NCAA.
- Georgia: Offers exemptions for non-recurring sporting events expected to generate over $50 million for the host locality, attracting major events like the Super Bowl or World Cup.
- Florida: Codifies exemptions for major sporting organizations such as the NFL, NBA, MLB, and NASCAR.
- Indiana: Broadly exempts both purchases and sales by major sporting organizations for these events.
Additional Costs: Taxes On Parking, Lodging, Food, And Souvenirs
What To Expect
While admissions are often the focus, individuals should also consider how other expenses related to attending a sporting event are taxed:
- Parking
- Lodging
- Food
- Souvenirs
These expenses can vary significantly depending on the jurisdiction.
Let Clarus Partners Simplify the Complexities Of Sales Tax At Sporting Events
Understanding how sales tax applies to sporting events can be complicated, but it’s crucial for planning your trip and managing expenses. Clarus Partners is here to help clarify these complex topics so you can spend less time worrying about taxes and more time enjoying the game. Stay tuned for the final article in our series, where we will discuss the tax implications of concerts.