Are admission charges to an arts and crafts fair with sales, demonstration and exhibition areas subject to sales tax?

Plain-English summary

Quail Hollow Events ran the Woodstock Arts and Crafts Fair in 1982. The show had a juried exhibition area (devoted to sales) and a demonstration area with continuous demonstrations of craft techniques. The brochure had also promised continuous entertainment, but the organizer says most of the invited musicians and entertainers didn't appear (the stage was mostly used by instrument makers to play their wares). It asked whether the admission charges were subject to sales tax.

The Department held the admission charges were taxable.

• Admissions to a "place of amusement" are taxable. Section § 1105(f)(1) imposes tax on admission charges to any place of amusement in the State.
• Exhibitions and public shows are covered. The regulation, 20 NYCRR § 527.10(b)(2)(ii), lists taxable amusement admissions to include exhibitions, and gives the example of a public trade show such as a boat, auto or horse show. An arts and crafts fair combining demonstrations and exhibitions with the display of goods for sale fits squarely within that language.
• Missing entertainment didn't change the result. The presence or absence of music or other traditional entertainment was not by itself dispositive. Because the event was an exhibition/demonstration show, the admission charges came within § 1105(f)(1) and were subject to tax.

What this means for you

Charging admission to a public show or fair usually triggers the amusement tax. New York taxes admission to a "place of amusement," and its regulation expressly reaches exhibitions and public trade shows. If people pay to get into your fair, expo, or show, plan on collecting sales tax on the admission.

A sales/marketplace element doesn't exempt the admission. The fact that vendors were there to sell crafts didn't turn the gate charge into something non-taxable. The event was still an exhibition and demonstration show, and the admission to it was taxable.

Whether the entertainment materialized doesn't control. You can't escape (or trigger) the tax based on how much live music showed up. The taxability turns on the nature of the event as a place of amusement — an exhibition/demonstration show — not on the entertainment lineup.

Common questions

Q: We charge admission to an arts and crafts fair. Is that taxable?
A: Yes, on facts like these. An exhibition/demonstration show open to the public is a "place of amusement," so admission charges are taxable under § 1105(f)(1).

Q: Our fair is mostly vendors selling crafts — does that make admission non-taxable?
A: No. The selling area didn't change the result; the event was still an exhibition and demonstration show, and the admission was taxable.

Q: We advertised live music but most performers didn't show. Does that matter?
A: No. The Department said the presence or absence of entertainment isn't by itself dispositive; the admission was taxable as a charge to a place of amusement regardless.

Citations and references

Statutes and regulations:

• Tax Law § 1105(f)(1) — tax on admission charges to a place of amusement
• 20 NYCRR § 527.10(b)(2)(ii) — taxable amusement admissions include exhibitions and public trade shows (boat, auto, horse shows)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1983.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a83_37s.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-A-83(37)S
Sales Tax
August 29, 1983

Taxpayer Services Division
Technical Services Bureau
STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. S830328A

On March 28, 1983 a Petition for Advisory Opinion was received from Quail Hollow Events,
P.O. Box 825, Woodstock, New York 12498.
The issue raised is whether admissions to the Woodstock Arts and Crafts Fair, conducted by
Petitioner in 1982, were subject to sales tax.
The event in question was divided into two areas, a juried exhibition area, apparently devoted
to sales, and a demonstration area. According to the brochure distributed to publicize the show, the
demonstration area was used for continuous demonstrations, throughout the show, of various craft
techniques. While the brochure also announced continuous entertainment, Petitioner states that most
of the invited musicians and other entertainers did not appear. Rather, the stage provided was used
by musical instrument makers to play their instruments.
Section 1105(f)(1) of the Tax Law imposes a tax on admissions charges to any "place of
amusement" in the State.
The Sales and Use Tax Regulations provide, in relevant part, that: "Taxable charges for
entertainment or amusement include admissions to sporting events such as baseball or football
games, stock car racing, and college athletic events, carnivals, rodeos, circuses and exhibitions.
. . . Example 4: An admission charge to a trade show such as a boat, auto or horse show
which is open to the public is an admission charge for entertainment or amusement." 20 NYCRR
527.10(b)(2)(ii).
As thus construed, it is clear that section 1105(f)(1) of the Tax Law is applicable to charges
for admission to an arts and crafts fair involving demonstrations and exhibitions in addition to the
display of goods for sale. The presence or absence of music or other traditional entertainment is not
by itself necessarily dispositive of the issue. The charges for admission to Petitioner's show thus
came within the ambit of such statutory provision, and were accordingly subject to tax.

DATED: August 10, 1983

RODERICK G. W. CHU, COMMISSIONER
TP-8 (3/83)

s/FRANK J. PUCCIA
Director
Technical Services Bureau

GABRIEL B. DiCERBO, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR