Are admission charges to an ice skating rink taxable in Kansas, and who can buy admissions tax-free?

Plain-English summary

A business asked how Kansas sales tax applies to admission charges — specifically, charges "that allow organizations into an ice skating rink."

Admissions are taxable. The Department quoted K.S.A. 79-3603(e), which imposes sales tax on "the gross receipts from the sale of admissions to any place providing … amusement, entertainment or recreation services." Because an ice skating rink is such a place, the admission charges "would normally be subject to the appropriate Kansas sales tax."

Certain direct purchasers are exempt. The Department listed the buyers whose admissions are not taxed when purchased directly by them: "the state of Kansas, political subdivisions of this state, educational institutions and schools, non-profit hospitals, non-profit blood[,] tissue or organ banks and non-profit zoos and religious organizations." Admissions "purchased directly by" those entities "would not be subject to sales tax in the state of Kansas."

Bottom line: admission to a recreational facility like an ice skating rink is taxable in Kansas, unless the admission is bought directly by one of the specific exempt purchasers the Department named.

What this means for you

Recreation admissions are taxable by default

Kansas taxes admissions to places of amusement, entertainment, or recreation under K.S.A. 79-3603(e). An operator of an ice rink or similar facility should generally collect sales tax on its admission charges.

The exemption depends on who buys — and that it is a direct purchase

The listed exemptions apply only when the admission is "purchased directly by" the exempt entity — for example, a school, a unit of government, a non-profit hospital, a non-profit zoo, or a religious organization. A direct purchase and payment by the exempt organization is what supports the exemption.

Keep documentation for exempt sales

When an operator does not charge tax because an exempt entity is buying the admissions directly, it should obtain and keep the appropriate exemption documentation to support treating that sale as exempt.

Individual patrons are not on the exempt list

The exemption runs to the specific entities the Department named, not to ordinary individual customers. Admissions sold to the general public remain taxable.

Common questions

Are ice skating rink admissions taxable in Kansas?
Yes. Under K.S.A. 79-3603(e), admissions to a place providing amusement, entertainment, or recreation — including an ice rink — are normally subject to Kansas sales tax.

Who can buy admissions without tax?
Admissions purchased directly by the state of Kansas, its political subdivisions, schools and educational institutions, non-profit hospitals, non-profit blood/tissue/organ banks, non-profit zoos, and religious organizations are not taxed.

Does the exemption apply if an individual member of an exempt group buys a ticket?
The ruling ties the exemption to admissions "purchased directly by" the listed entities. A purchase made and paid for by the exempt organization itself is what qualifies.

What statute governs admissions?
K.S.A. 79-3603(e), which taxes gross receipts from the sale of admissions to places of amusement, entertainment, or recreation.

Citations and references

• K.S.A. 79-3603(e) — imposes Kansas sales tax on gross receipts from the sale of admissions to any place providing amusement, entertainment, or recreation services; the Department applied it to ice skating rink admissions.
• The exemptions the Department listed (state and political subdivisions, schools/educational institutions, non-profit hospitals, non-profit blood/tissue/organ banks, non-profit zoos, and religious organizations) are described in prose; the ruling does not cite a numbered subsection for each.
• K.A.R. 92-19-59 — authorizes Kansas private letter rulings; this ruling binds the Department only as to the requesting taxpayer and the facts presented.
• Issued September 4, 1998 by Thomas P. Browne, Jr., Tax Specialist, Kansas Department of Revenue.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1998-120

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

September 4, 1998

TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT

Dear Mr. TTTTTT:

We wish to acknowledge receipt of your letter dated August 31, 1998, regarding the application of Kansas Retailers’ Sales tax.

K.S.A. 79-3603(e) imposes a sales tax upon: “the gross receipts from the sale of admissions to any place providing providing amusement, entertainment or recreation services. . .”

The gross receipts received from the admission charges that allow organizations into an ice skating rink would normally be subject to the appropriate Kansas sales tax. However, admissions that are purchased directly by the state of Kansas, political subdivisions of this state, educational institutions and schools, non-profit hospitals, non-profit blood tissue or organ banks and non-profit zoos and religious organizations would not be subject to sales tax in the state of Kansas.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked in the future by the operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially effects this private letter ruling. If I may be of further assistance, please contact me at your earliest convenience at (785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

TPB

Date Composed: 09/14/1998 Date Modified: 10/10/2001

Table 1

Table 2