Which league, tournament, admission, and sports-participation charges were taxable in Kansas?

Plain-English summary

Kansas imposed retailers' sales tax on private fees for participation in sports, games, and recreational activities.

Taxable receipts included:

• League and tournament fees, whether charged to each person or to a team.
• Gate admissions.
• Food, soft drinks, candy, shirts, hats, balls, and other tangible items.
• Fundraising sales such as door-to-door candy sales.

K.S.A. 79-3603(e) exempted participation charges imposed by Kansas political subdivisions. The notice gives examples such as municipal softball, baseball, volleyball, soccer, swimming-pool participation, and green fees.

That exemption did not cover a political subdivision's admissions or tangible-property sales. It still collected tax on gate charges and on food, beverages, clothing, balls, and similar items.

What this means for you

A private league or tournament organizer needed to register and collect tax on both participation fees and related taxable sales. A city or other political subdivision separated exempt participation charges from taxable admissions and merchandise.

Common questions

Q: Was a team entry fee taxable?
A: Yes. The notice taxes participation fees whether collected from individuals or on a team basis.

Q: Were city recreation-program participation fees taxable?
A: No, when charged by a Kansas political subdivision.

Q: Could a city sell concessions tax-free?
A: No. Tangible-property sales remained taxable.

Citations and references

• K.S.A. 79-3603(m).
• K.S.A. 79-3603(e).

Subject

League and Tournament Organizations

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 91-0717

Original ruling text

Notice
Notice Number:
Tax Type: Kansas Retailers' Sales Tax
Brief Description: League and Tournament Organizations
Keywords:
Effective Date: 07/17/1991

Body:
NOTICE

TO: League and Tournament Organizers (softball, baseball, soccer, etc.)

FROM: Kansas Department of Revenue

SUBJECT: Application of Retailers' Sales Tax to fees charged for participation in sports,
games and other recreational activities.

DATE: May 17, 1991

K.S.A. 79-3603(m) levies a tax "upon the gross receipts received from fees and charges by public and private clubs, drinking
establishments, organizations and businesses for participation in sports, games and other recreational activities."

Thus, fees charged for participation in a sport, game or recreational activity, such as league fees or tournament fees, would be subject
to the Kansas retailers' sales tax. An organization which charges a fee for participation in one or more of these activities would be
required to collect and remit the Kansas retailers' sales tax and any applicable local sales tax. These fees would be subject to the tax
whether collected form each individual or on a team basis.

K.S.A. 79-3603(e) levies a tax "upon the gross receipts from the sale of admissions to any place providing amusement, entertainment
or recreation services but shall not be levied and collected upon the gross receipts received from fees and charges by political
subdivisions of the state of Kansas for participation in sports, games and other recreational activities"

Therefore, fees charged for admission to sports, games or recreational activities (gate receipts) would be subject to the retailers' sales
tax.

Additional examples of transactions conducted by a league, association or tournament organizer which would be subject to the
retailers' sales tax include, but are not limited to, the sale of food, soft drinks, candy, T-shirts, hats, balls, etc. The organizing group
would also be required to collect and remit the retailers' sales tax on fund raising activities, such as the door-to-door sales of candy or
similar items.

As stated in K.S.A. 79-3603(e) the charges made by political subdivisions of the state of Kansas for participation in sports, games
and other recreational activities would not be subject to the retailers' sales tax (Examples would include such activities as softball,
baseball, volleyball, soccer, admissions to swimming pools, green fees, etc.). however the political subdivision of the state of Kansas
would be required to collect and remit the retailers' sales tax on the sales of tangible personal property such as food, beverages, T-
shirts, hats, balls, etc. and on the charges for admission to such sports, games and other recreational activities.

Date Composed: 10/07/1997 Date Modified: 10/10/2001

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