Under Kansas destination-based sourcing, where is sales tax charged on an event admission ticket?

Plain-English summary

A ticket seller asked how Kansas's new destination-based sourcing rules apply to admission tickets for athletic and entertainment events. Under the rules adopted in 2003 House Bill 2005 (effective July 1, 2003), a ticket to a football game, basketball game, or similar event is sourced to the location where the event takes place — not to where the ticket is sold or mailed.

The practical consequences:

• Event in Kansas: the state and local sales tax in effect at the venue's location applies to the ticket, regardless of whether the ticket is mailed to the buyer somewhere else or bought at the ticket window.
• Event outside Kansas: the ticket sale is an out-of-state sale not subject to Kansas sales tax, and the law of the state where the event occurs governs.

The Department also gave collection mechanics: the state and local tax should be printed on the face of the ticket whenever possible, and for remote ticket sales, the remote vendor should collect the full ticket amount (principal plus sales tax) and forward it to the venue's ticket office, which accounts for all admission receipts. This applies to all remote sales, whether made inside or outside Kansas.

What this means for you

Venues, teams, and box offices

Charge the sales tax rate for your venue's location on every admission, even when a ticket is bought online or by mail from somewhere else. Where the fan buys the ticket does not change the rate — the event location does.

Ticket resellers and remote/online sellers

Collect the full ticket price including the venue-location tax and remit it to the venue's ticket office. Use this process for all remote sales regardless of where the buyer is.

Out-of-state events

If the event is outside Kansas, don't charge Kansas tax — that's an out-of-state sale governed by the event state's law.

Common questions

Q: A fan in another city buys a ticket to a Kansas event by mail — which rate applies?
A: The state and local rate at the event's location. Destination sourcing ties the ticket to where the event happens, not where the buyer is.

Q: What if the event is outside Kansas?
A: Then the ticket sale is an out-of-state sale not subject to Kansas sales tax; the event state's tax law applies.

Q: How should the tax appear and be collected?
A: Print the state and local tax on the ticket face when possible. For remote sales, the vendor collects the full amount (price plus tax) and forwards it to the venue's ticket office.

Q: Does this ruling apply to my sales?
A: A Kansas private letter ruling addresses only the requesting taxpayer's facts and cannot be relied on as precedent by others, though it shows how the Department sources admission-ticket sales.

Citations and references

• 2003 House Bill 2005 — the legislation adopting Kansas's destination-based sourcing rules effective July 1, 2003. Under it, an event ticket is sourced to the location where the event takes place, so the venue's state and local tax applies (and out-of-state events are not subject to Kansas tax).
• K.A.R. 92-19-59 — the regulation authorizing Kansas private letter rulings.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2003-038

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

July 31, 2003

XXXX
XXXX
XXXX

Re: Your Correspondence Dated July 21, 2003

Dear XXXX:

You requested guidance on how the new destination-based sourcing rules apply to the sale of tickets to athletic and other types of events. Under these new rules adopted in 2003 House Bill 2005 effective July 1, 2003, the sale of a ticket to such an event as a football game, basketball game, or other entertainment event would be sourced to the location where the event takes place. If the event takes place in XXXX, Kansas, then the local sales tax in effect at that location will apply to the sale of the ticket, without regard to whether the ticket is mailed to the purchaser at a different location or purchased at the ticket window. If the event takes place at a location outside of Kansas, then the sale of the ticket to such an event would be considered an out-of-state sale not subject to Kansas sales tax, and the sales tax laws of the state where the event occurs would govern the transaction.

Admission tickets should have the state and local sales tax charges printed on the face of the ticket whenever possible. When remote ticket sales are made, the remote vendor should collect the full ticket amount (principal and sales tax) and forward it to the XXXX ticket office. The XXXX ticket office should account for all receipts for sales of admissions to XXXX events. This process should be used for all remote ticket sales, whether the sales are made in Kansas or outside the state.

Please let me know if you have further questions concerning the above.

Very truly yours,

Richard L. Cram

Date Composed: 08/04/2003 Date Modified: 08/04/2003

Table 1

Table 2