Were tickets to theatrical productions exempt under Georgia's temporary fine-arts exemption when a for-profit presenter used a qualifying nonprofit venue?

Plain-English summary

A for-profit organization co-presented touring theatrical productions at a Georgia venue owned and operated by a 501(c)(3) nonprofit. The venue also provided educational programs and had a primary mission advancing the arts and culturally significant programming.

The Department ruled that tickets were exempt under Georgia's temporary fine-arts exemption. The productions qualified as theater or dramatic arts, and the facility owner satisfied the nonprofit-status and arts-mission requirements. The for-profit presenter's involvement did not defeat the exemption because the performances occurred in a qualifying facility.

The Department also said the exemption in O.C.G.A. § 48-8-3(100) stood independently from the separate exemption in paragraph (99); neither depended on satisfying the other. The ruling states that paragraph (100)'s fine-arts exemption applied from April 25, 2017 until July 1, 2020, so this is historical guidance rather than a current-law conclusion.

What this means for you

Theatrical producers and presenters

Under the former exemption, a for-profit producer could benefit when a qualifying fine-arts performance occurred in a facility owned by an eligible nonprofit arts organization. The presenter's own tax status was not the controlling fact.

Nonprofit arts venues

Facility ownership, 501(c)(3) status, and the organization's primary mission all mattered. Hosting educational programs and a broad range of arts offerings supported the mission requirement.

Accountants and tax professionals

Treat this as historical interpretation of the 2017-2020 exemption. The ruling also confirms that separately numbered exemptions are not automatically dependent on one another.

Common questions

Q: Did the theater productions qualify as fine arts?
A: Yes. The Department treated them as theater or dramatic arts within the statutory definition.

Q: Did the for-profit co-presenter make the tickets taxable?
A: No. The qualifying performances occurred in a facility owned and operated by an eligible nonprofit arts organization.

Q: Did two theater-related exemptions have to be satisfied together?
A: No. The Department said O.C.G.A. § 48-8-3(99) and (100) were separate, independent exemptions.

Q: Is the fine-arts exemption still current?
A: The ruling says it applied from April 25, 2017 until July 1, 2020. It does not establish current ticket taxability.

Q: Can another producer rely on this ruling?
A: No. It is limited to the requesting taxpayer, performances, facility, and law then in effect.

Citations and references

Statutes and guidance:

• O.C.G.A. §§ 48-8-1 and 48-8-30(a) (sales and use tax imposition)
• O.C.G.A. § 48-8-2(31) (entertainment admissions as retail sales)
• O.C.G.A. § 48-8-3(100) (temporary fine-arts admissions exemption)
• O.C.G.A. § 48-8-3(99) (separate theater-related exemption discussed by the ruling)
• Georgia Department of Revenue Policy Bulletin SUT-2017-07 (fine-arts exemption guidance)

Source

• Landing page: Georgia Sales & Use Tax Letter Rulings
• Original PDF: LR SUT-2018-04

Original ruling text

Georgia Letter Ruling number: LR SUT-2018-04
Topic: Admissions, Fine Arts
Dated: May 4, 2018
This letter is in response to your request for guidance on the application of Georgia sales and use tax to sales of tickets
for admission to certain theatrical productions.
Facts Presented by Taxpayer
[Redacted] (“Taxpayer”) is a for-profit organization that has been presenting and producing touring productions in
Georgia since 1981.
Performances are conducted within a venue, which is owned and operated by a Georgia nonprofit corporation that is
exempt from federal income taxation under I.R.C. § 501(c)(3). Tickets for theatrical productions conducted within
the venue bear a charge for admission and do not reflect any amount of sales tax. 1
The venue is a Georgia nonprofit corporation, which is exempt from federal income taxation under I.R.C. § 501(c)(3).
It also operates educational programs.
Issues
1.

Are sales of tickets for admission to fine arts performances conducted within the Co-Presenter’s venue, which is
owned and operated by a Georgia nonprofit corporation that is exempt from federal income taxation under I.R.C.
§ 501(c)(3), exempt from Georgia sales and use tax under O.C.G.A. § 48-8-3(100) when the fine arts
performances are co-presented by Co-Presenter and Taxpayer, a for-profit organization?

2.

Should the exemptions under section 48-8-3(100) and 48-8-3(99) be read in conjunction with each other such that
each is dependent upon the other, or does each paragraph stand on its own as an independent exemption that
should not be read in conjunction with other exemptions?

Analysis
When enacting Article 1 (state sales and use tax) of Chapter 8 of Title 48, the Georgia General Assembly expressed
its intent to “exercise its full and complete power to tax the retail purchase, retail sale, rental, storage, use, and
consumption of tangible personal property and the services described in this article except to the extent prohibited by
the Constitutions of the United States and of this state and except to the extent of specific exemptions provided in this
article.” 2 Georgia sales and use tax is levied and imposed (subject to certain specific exemptions) on the retail
purchase, retail sale, storage, use, or consumption of tangible personal property, certain enumerated services, and
utilities. 3 “Retail sale” means any sale, lease, or rental for any purpose other than for resale, sublease, or subrent. The
term “retail sale” includes sales of tickets, fees, or charges made for admission to places of amusement, sports, or
entertainment including, but not limited to, any place at which any exhibition, display, amusement, or entertainment
is offered to the public or any other place where an admission fee is charged. 4
From April 25, 2017 until July 1, 2020, sales of tickets, fees, or charges for admission to certain fine arts performances
or exhibitions are exempt from sales and use tax. 5 To satisfy the requirements of this exemption, the fine arts
performance or exhibition must be performed or exhibited by, or within a facility owned by, a tax exempt 501(c)(3)
organization or a museum of cultural significance, if such organization’s or museum’s primary mission is to advance
the arts in this state and to provide arts, educational, and culturally significant programming and exhibits for the benefit
and enrichment of the citizens of this state. As used in this exemption, “fine arts” means music performed by a

Taxpayer included a copy of a sample ticket.
O.C.G.A. § 48-8-1.
3
O.C.G.A. §§ 48-8-1, 48-8-2(31)(A), and 48-8-30(a).
4
O.C.G.A. § 48-8-2(31).
5
O.C.G.A. § 48-8-3(100).
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Georgia Letter Ruling number: LR SUT-2018-04
Topic: Admissions, Fine Arts
Dated: May 4, 2018
Page 2 of 2
symphony orchestra, poetry, photography, ballet, dance, opera, theater, dramatic arts, painting, sculpture, ceramics,
drawing, watercolor, graphics, printmaking, and architecture. 6
In this case, Taxpayer does not dispute that sales of tickets to the Performance are retail sales since the tickets are for
admission to a place where entertainment is offered. To determine whether the sales of tickets at issue fall within the
above exemption, the Department must consider the nature of the performance as well as the performance venue’s
status and mission. The performances referenced above are both qualifying “fine arts” performances as either theater
or dramatic arts. The performances are to be conducted within a Georgia facility which is both owned and operated
by [Redacted]., an organization exempt from taxation under I.R.C. § 501(c)(3). Thus, the performances are
conducted/performed or exhibited within a facility owned by a tax exempt 501(c)(3) organization. Finally, the venue
qualifies as an organization whose primary mission is to advance the arts 7 in Georgia and to provide arts, educational,
and culturally significant programming and exhibits for the benefit and enrichment of the citizens of Georgia.
Rulings
1.

Because the performances referenced above are fine arts performances that are performed in a venue that is owned
and operated by an exempt 501(c)(3) organization with a primary mission that falls within the requirements set
forth in O.C.G.A. § 48-8-3(100), sales of tickets for admission to fine arts performances are exempt from sales
and use tax.

2.

The exemptions in O.C.G.A. § 48-8-3(99) and (100) are separate exemptions and are not dependent on each other.

The opinions expressed in this ruling are based upon the information contained in your request and limited to the
specific transactions, facts, circumstances and taxpayer in question. The facts herein are those presented by the
taxpayer and the Department accepts them as true for this ruling. If the facts presented herein change, are not true,
are different, or material facts have been omitted, the conclusions reached in this ruling may change. In addition,
subsequent statutory or administrative rule changes or judicial interpretations of the statutes or rules upon which this
advice is based may subject similar future transactions to a different tax treatment than that expressed in this ruling.

Id.; Georgia Department of Revenue Policy Bulletin SUT-2017-07.
It should be noted that while the exemption uses the language “fine arts” and defines that term, it uses the broader
term “the arts” in the context of defining the organization’s mission, but does not define “the arts”. It hosts a wide
range of performances. Such offerings fall under the broad umbrella of "the arts" and can be deemed arts, educational,
and culturally significant programming and exhibits for the benefit and enrichment of the citizens of Georgia. In
addition, the venue provides educational programs to Georgia citizens.

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