Was a requested donation an admission charge when people who declined could enter an event without restriction?

Plain-English summary

An event sponsor requested a donation from people entering cat shows, auto shows, or similar activities. Payment was not required, people who declined were admitted without restriction, and experience showed that some people did not donate.

The letter said this was not an admission charge because the cited rule defined admission as consideration required for entry. A voluntary payment did not meet that definition.

The surrounding facts still had to make the voluntary nature obvious. A fixed donation amount, turnstile or other restrictive device, or an attendant requesting payment at the door could be evidence that everyone had to pay or reasonably believed payment was required.

Common questions

Did merely asking for a donation create admission?

No, if nonpaying visitors truly entered without restriction.

Could a stated amount or door attendant change the result?

Yes. Those facts could indicate the charge was effectively mandatory.

Citations and references

• Board Ruling 53(c)(2)(C) (as cited)

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/550-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/550-0020.pdf

Original ruling text

STATE OF CALIFORNIA

550.0020

STATE BOARD OF EQUALIZATION
January 27, 1970
Dear Mr. REDACTED TEXT,
This is in response to your letter of January 15 asking whether a donation requested for admission to a cat show, auto show, or other activity constituted an “admission charge” subjecting sales of food products to tax under recent amendments to the Sales and Use Tax Law. It is my understanding that the donation is requested but not required and persons not desiring to make a donation are granted admission without any restriction. I assume that experience shows some persons do not make a donation. Under Ruling 53(c)(2)(C), admission charge means any consideration required to be paid in money or otherwise, for admittance to a place. As the sponsors of the events you describe do not require a donation, but rather make such a payment voluntary; entrance is not subject to an admission charge within the meaning of the code and regulations. However, the facts surrounding the request for the donation must be such that it is obvious that admittance is not restricted to those making the donation. A set amount for the donation, a turnstile or other restrictive device that must be passed through, or an attendant requesting the donation at the door will be evidence that the charge is not voluntary and all must pay or would reasonably believe they are required to pay. Very truly yours, Lawrence A. Augusta Assistant Counsel Laa:ph [lb]