NY TSB-A-10(11)S Sales Tax 2010-03-26

Are admission charges to haunted houses -- and a combined concert/haunted-house ticket -- subject to NY sales tax?

Short answer: Yes. A haunted house is a place of amusement, so admission charges to it are taxable under Tax Law 1105(f)(1). And a single ticket that admits a patron to a concert and also lets them enter the haunted houses is fully taxable: even though admission to a musical performance by itself isn't taxable, bundling it with admission to a taxable place of amusement makes the whole charge taxable (the two amusements are distinct -- the haunted houses are sold separately and aren't integral to the concert).

Disclaimer: This is an official New York State Department of Taxation and Finance Advisory Opinion (TSB-A), issued by the Office of Counsel at a taxpayer's request. It is limited to the facts set forth in it and binds the Department only with respect to the petitioner to whom it was issued, and only if that petitioner fully and accurately described all relevant facts; another taxpayer cannot rely on it. It reflects the law, regulations, and Department policy in effect when issued and may since have changed. Taxpayer-identifying details are redacted. New York State and local sales taxes are administered centrally by the Department. This summary is informational only and is not legal or tax advice. Consult a licensed New York tax professional about your specific situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked at the bottom of this page, or PDF in the sidebar) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

The petitioner runs a seasonal group of haunted houses (open October to early November) that patrons pay $17-$20 to enter; there's also a free entertainment area with video screens, music, a DJ, and costumed performers. Occasionally it holds musical concerts in the main building (about $40), and a concert ticket also lets the patron into the haunted houses. The question: are the admission charges taxable?

The Office of Counsel concluded both charges are taxable.

Haunted-house admissions are taxable. Tax Law 1105(f)(1) taxes admission charges over ten cents to a place of amusement, and 1101(d)(10) defines that as any place providing facilities for entertainment, amusement, or sports. The haunted houses qualify (citing Fort William Henry and Haunted Haywagons), so admission is taxable.
The combined concert-plus-haunted-house ticket is fully taxable. Admission to a dramatic or musical performance alone is not taxable. But a charge is taxable under 1105(f)(1) if it admits the patron both to a musical performance and to a separate taxable place of amusement. Because the concert ticket here also admits patrons to the haunted houses, the whole charge is taxable. The opinion applies the single-charge bundling rule (Dynamic Telephone Answering -- one charge for taxable and nontaxable items is taxable): the haunted houses are a distinct amusement, sold separately, and not integral to the concert.

What this means for you

Seasonal attraction and event operators

A haunted house, corn maze, or similar attraction is a taxable place of amusement -- collect tax on admission. Be careful when you bundle an otherwise-exempt concert or theatrical performance with entry to a taxable attraction on one ticket: the entire ticket becomes taxable. If you want the music portion to stay exempt, sell and price it separately from the attraction (and make sure the attraction admission isn't just thrown in).

Patrons

Expect sales tax on haunted-house tickets, and on combo tickets that include both a show and a taxable attraction.

Common questions

Q: Is a haunted house a taxable "place of amusement"?
A: Yes -- it provides facilities for entertainment/amusement under 1101(d)(10), so admission is taxable under 1105(f)(1).

Q: Concert admission isn't taxable -- why is my combo ticket taxed?
A: Because the one charge also admits you to the taxable haunted houses; bundling a taxable amusement with the exempt performance makes the whole charge taxable.

Q: How could the operator keep the concert exempt?
A: By charging separately for the musical performance, distinct from the taxable attraction admission.

Citations and references

Tax Law section 1105(f)(1) (tax on admission charges to a place of amusement)
Tax Law section 1101(d)(2) (definition of admission charge)
Tax Law section 1101(d)(10) (definition of place of amusement)

Source

Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2010.htm
Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a10_11s.pdf

Original ruling text

New York State Department of Taxation and Finance

TSB-A-10(11)S
Sales Tax
March 26, 2010

Office of Counsel
Advisory Opinion Unit
STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S091207B

On December 7, 2009, the Department of Taxation and Finance received a Petition for Advisory
Opinion from name and address redacted. Petitioner asks whether its admission charges are subject to
sales tax. Petitioner charges admission to places of amusement. These charges are subject to sales tax.
Facts
Petitioner operates on a seasonal basis a group of haunted houses that patrons pay admission to
enter. The attractions are located in a central location in the name of city redacted area. Patrons can pay
admission on- site or at outlets in the name of city redacted area. The main building containing the
haunted house has an entertainment area, which patrons can enter for free. A video screen in this area
displays trailers and clips of scary movies. Another video screen displays music videos, interviews with
patrons, and a clip from the Travel Channel reviewing the haunted house. Music is played in the
entertainment area; a DJ is on hand during periods of high attendance. Costumed performers entertain
patrons in this area. Petitioner operates a snack counter in this area that sells soft drinks and snacks.
The haunted houses are 60-80 feet wide and 40-48 feet deep (approximately 4800 square feet).
No live performers work in the haunted houses. The haunted houses are registered with New York State
as amusement rides. Patrons can stay in haunted houses as long as they want. The admission charges to
the haunted houses range from 17 to 20 dollars.
The haunted houses are open only during October and early November.
On occasion, during the period the haunted houses are open, musical concerts are held in the main
building. Petitioner charges admission to these concerts. The average concert admission price is
approximately 40 dollars. Patrons who pay this admission charge are permitted to enter the haunted
houses.
Analysis
Section 1105(f)(1) imposes sales tax on “any admission charge where such admission charge is in
excess of ten cents to or for the use of any place of amusement in the state, except charges for admission
to race tracks, boxing, sparring or wrestling matches or exhibitions which charges are taxed under any
other law of this state, or dramatic or musical arts performances . . . or motion picture theaters, and except
charges to a patron for admission to, or use of, facilities for sporting activities in which such patron is to
be a participant, such as bowling alleys and swimming pools.” Section 1101(d)(2) of the Tax Law
defines “admission charge” as the amount paid for admission, including any service charge and any
charge for entertainment or amusement or for the use of the facilities therefore. Section 1101(d)(10)
defines “place of amusement” as any place where any facilities for entertainment, amusement, or sports
are provided. Petitioner’s haunted houses constitute places of amusement. See Fort William Henry Corp.
v State Tax Commission, 52 Ad2d 664, 381 NYS2d 907; Haunted Haywagons, Rides, Inc., Adv Op

-2-

TSB-A-10(11)S
Sales Tax
March 26, 2010

Comm T&F, May 15, 1992, TSB-A-92(40)S. Therefore, admission charges to Petitioner’s haunted
houses are subject to sales tax.
Petitioner’s admission charge that allows a patron to attend a concert also allows the patron to
enter the haunted houses. The admission charge to the haunted house alone is almost half the price of the
admission charge for both the haunted house and concert. While an admission charge for just a dramatic
or musical performance is not subject to sales tax, a charge is taxable under Tax Law section 1105(f)(1) if
it permits admission to a site for a dramatic or musical performance and to an additional site that is a
place of amusement subject to sales tax. See Dynamic Telephone Answering, Inc. v State Tax
Commission, 135 AD2d 978, 522 NYS2d 386; lv denied 71 NY2d 801, 527 NYS2d 767 (1987) which
held that a single charge for both the rental of taxable tangible personal property and the furnishing of
nontaxable services is subject to sales tax. Petitioner in this scenario is bundling admission to two distinct
forms of amusements. These amusements are distinct because admission to the haunted houses is sold
separately and admission to the haunted houses is not integral to providing admission to a concert.
Accordingly, Petitioner’s admission charge that allows a patron to attend a concert and to enter the
haunted houses is subject to sales tax under section 1105(f)(1).

DATED: March 26, 2010

NOTE:

/S/
Jonathan Pessen
Director of Advisory Opinions
Office of Counsel

An Advisory Opinion is issued at the request of a person or entity. It is limited to
the facts set forth therein and is binding on the Department only with respect to
the person or entity to whom it is issued and only if the person or entity fully and
accurately describes all relevant facts. An Advisory Opinion is based on the law,
regulations, and Department policies in effect as of the date the Opinion is issued
or for the specific time period at issue in the Opinion.