Does a trade association that runs a single three-day trade show each year count as a taxable-show 'promoter'?

Plain-English summary

The Master Furriers Guild of America, Inc., a trade association, conducts one trade show of three days' duration each year. It asked whether it — or the landlord that rents it the exhibition space, or both — is a "promoter" for New York sales-tax purposes.

The Department explained the rules and gave a split answer.

• Who is a "promoter." Under Tax Law § 1131(5), a promoter is anyone who rents, leases, or licenses space to vendors for the display or sale of taxable tangible personal property or services at more than three shows during the calendar year (or who operates more than three shows). A single show can run up to seven consecutive days and still count as one show (§ 1131(6); 20 NYCRR 533.1(c)). What matters is the transient nature of the vendors, not whether the building is permanent.
• The Guild is not a promoter. Because it holds only one show a year, the Guild does not cross the "more than three shows" line and is not a promoter.
• The landlord may be the promoter. If the landlord that rents the space has provided space for at least three prior shows that year, the landlord is the promoter and must comply with the show-promoter duties: obtain and post a Permit to Operate a Show (Form PR-169.2), allow only registered vendors (with certificates of authority posted) to sell taxable goods, file a Report of Show (Form TP-375.2) listing each participant's name, address, sales-tax ID, and rental charge, and keep supporting records (20 NYCRR 533.1(c), (d); 533.2(e)(7); 533.3(i)).
• The Guild still has to help. To let the landlord file the Report of Show, the Guild (the organizer) must furnish the vendor information.
• Every exhibitor must register. Regardless of the promoter question, each exhibitor selling tangible personal property must obtain and visibly post a Certificate of Authority for Show Vendors (Form DTF-860C). Already-registered sellers can request a duplicate certificate (Form TP-153A) or a separate show-vendor certificate; unregistered sellers file Form DTF-860ABC, and each exhibitor must give the promoter its name, address, and New York sales-tax ID.

What this means for you

Counting shows, not days, decides promoter status. The trigger is renting space to vendors at more than three shows in a calendar year. A single annual event — even a multi-day one (up to seven consecutive days counts as one show) — doesn't make the organizer a promoter.

The site owner can be the promoter even if it doesn't organize the show. If the venue rents to vendors at more than three shows a year, the landlord carries the promoter duties — the permit, the vendor screening, and the Report of Show — and the individual show's organizer must hand over vendor details so the landlord can file.

Exhibitors always need a certificate of authority. Even when no one at your event is a "promoter," every vendor selling taxable goods must be registered and post a Certificate of Authority for Show Vendors (Form DTF-860C).

Common questions

Q: We run one trade show a year. Are we a promoter?
A: No. A single yearly show — even three consecutive days — is below the "more than three shows" threshold, so the organizer isn't a promoter.

Q: Then who handles the show-permit and reporting duties?
A: The landlord, if it has hosted at least three prior shows that year. As promoter, it gets the permit and files the Report of Show — and you must give it your vendor information so it can.

Q: Do our exhibitors still need to register?
A: Yes. Every exhibitor selling tangible personal property must obtain and post a Certificate of Authority for Show Vendors (Form DTF-860C), whether or not anyone is a promoter.

Citations and references

Statutes and regulations:

• Tax Law § 1131(5) — "promoter": renting space to vendors for taxable sales at more than three shows a year (or operating more than three shows); a run of up to seven consecutive days is one show
• Tax Law § 1131(6) — "show": a flea market, craft/antique/coin/stamp/comic-book show, fair, or similar event with more than one vendor selling taxable property or services
• 20 NYCRR 533.1(c), (d); 533.2(b), (e)(7); 533.3(i) — permit, vendor-registration, Report-of-Show, and recordkeeping duties

Forms and guidance referenced:

• Form PR-169.2 (Permit to Operate a Show); Form TP-375.2 (Report of Show); Form TP-375.3 (Information for Promoters); Form DTF-860C / DTF-860ABC / TP-153A (show-vendor certificates of authority); Publication 815; TSB-M-80(8)S

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1986.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a86_33s.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-A-86 (33)S
Sales Tax
September 3, 1986

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

PETITION NO. S860422A

On April 22, 1986, a Petition for Advisory Opinion was received from Master Furriers Guild
of America, Inc., 101 West 30th Street, New York, New York 10001.
Petitioner, a trade association, conducts one trade show of three days duration each year. The
issue raised is whether, pursuant to the Sales Tax Law and Regulations, Petitioner or the renter of
the exhibition space (landlord) or both are promoters with respect to this show.
Section 1131(5) of the Tax Law describes a "Promoter" as:
...any person who, either directly or indirectly, rents, leases or grants a license to use
space to any person for the display for sale or for the sale of tangible personal
property or services subject to tax, at more than three shows during the calendar year,
or who operates more than three shows during the calendar year. For purposes of
determining whether three shows have been held, the conduct of an activity described
in subdivision six on one day alone or on a series of up to seven consecutive days
shall be deemed to constitute a single show.
In section 1131(6) of the Tax Law, a "Show" is stated to include:
...a flea market, craft show, antique show, coin show, stamp show, comic book show,
fair and any similar show, whether held regularly or of a temporary nature, at which
more than one vendor displays for sale or sells tangible personal property or services
subject to tax.
Regulation Section 533.1(c) explains further:
(2). . . .
(i)
For purposes of determining the existence of a show, the permanent
nature of the premises or structure in which the activity is held is not relevant.
Instead, it is the transient nature of the vendors which is relevant. Accordingly, when
there are two or more vendors operating on the same premises, and two or more
vendors have leases or licenses to use such premises for a period of less than one year
or where the leases or licenses to use may be cancelled on notice of less than 30 days,
then a show is presumed to exist for all purposes of this Part. Another fact which
indicates the existence of a show is where the vendors regularly remove their
merchandise from the premises at the close of each business day.

RODERICK G. W. CHU, COMMISSIONER
GABRIEL B. DiCERBO, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR
TP-8 (3/83)

-2­
TSB-A-86 (33)S
Sales Tax
September 3, 1986

(ii)
If no taxable tangible personal property or services are displayed for
sale or sold, then the activity is not a show for purposes of this subdivision.
(iii) Sales of food and drink for consumption on the premises, although
taxable, will not be considered for purposes of determining the existence of a show.
Further, admission charges for games of chance or skill, like those typically operated
on a carnival midway, although taxable, will not be considered for purposes of
determining the existence of a show.
(3). . . A person may be a promoter with respect to show vendors operating on his
premises, and at the same time not a promoter with respect to vendors who have
permanent places of business on the same premises. . .If there is more than one
person involved in the organization or operation of a show who is within the
definition of promoter, then all such persons must file a single notice of show and
application for show permit as co-promoters.
Example 1:

A, the owner of the X shopping mall, leases an area in the mall to B
for the purpose of holding a flea market on each of five weekends
during the year. B intends to sublease space to individual show
vendors. If neither A nor B is involved in organizing or operating any
show other than at the X shopping mall, then, after the third weekend
the flea market is held, both A and B are promoters subject to this
subdivision. While A, the owner of the X mall, is a promoter with
respect to the show vendors participating in the flea market, A is not
a promoter with respect to the permanent vendors of the X mall.

Example 2:

A, the owner of the X shopping mall, leases area in the mall to B for
the purpose of holding a flea market on the first weekend of July. B
intends to sublease portions of the mall area to individual show
vendors. A is not involved in organizing or operating any other show
during the calendar year. B, however, will operate similar shows on
three weekends during June at a location other than the X shopping
mall. With regard to the flea market at the X shopping mall, A is not
a promoter, but B is a promoter subject to this subdivision.

Promoters must file a notice of show and an application for show permit 10
days prior to the opening of the fourth show.
Publications of the Department of Taxation and Finance offer additional interpretations of
the Tax Law and Regulations as follows: "The promoter organizes or operates a show by granting
the use of a location." (Sales Tax Information for Show Vendors and Promoters, Publication 815
[3/85]).

-3­
TSB-A-86 (33)S
Sales Tax
September 3, 1986

"Owners or renters of parking lots, shopping malls, hotels, or other real property at which shows are
held and organizers of shows . . . are promoters." (Information for Promoters, Form TP-375.3
[3/84]).
"After the third . . . show during the calendar year held at the same location or operated or
sponsored by the same individual or organization, the operator, sponsor or site owner will be
required to comply with the show promoter requirements of the Sales and Use Tax Law." (Technical
Services Bureau Memorandum, Show Promoter Requirements as They Apply to Farmers' Markets,
July 10, 1980, TSB-M-80(8)S).
Accordingly, a "Permit to Operate a Show" (Form PR-169.2 [12/84]) is required for the
fourth and all subsequent shows held during a calendar year at the same premises, and for the fourth
and all subsequent shows in a calendar year located at different sites, but managed by the same
promoter.
Inasmuch as Petitioner conducts only one trade show on three consecutive days during a
calendar year, it is not a promoter for the purposes of the Sales Tax Law. The landlord, if he has
provided space for at least three prior shows (see Regulation 533.1(c), supra,) in the year, is deemed
the show promoter who must comply with the requirements stated in the Sales and Use Tax
Regulations. These are summarized as follows:
1.

To obtain a show permit for the fourth and each subsequent show in a calendar year (Permit
to Operate a Show, Form PR-169.2), and to prominently display it at the main entrance to
the show.

2.

To allow only registered vendors who have properly posted their certificate of authority at
their show booth to display or sell goods subject to sales tax.

3.

To file a Report of Show (Form TP-375.2) listing names, addresses, New York sales tax
identification numbers, and rental charges per month for each participant. The report should
list separately vendors claiming exclusively tax exempt sales.

4.

To maintain supporting records.

20 NYCRR 533.1(c), (d); 533.2(e)(7); 533.3(i).
To fulfill its obligations under the law, the landlord must ask the Petitioner to furnish the
show vendor information (item 3. above) necessary to file the Report of Show.
Although an organization conducting only one yearly trade show is not required to perform
any of the above quoted duties of a promoter, each exhibitor of tangible personal property at the
show must obtain and visibly post a Certificate of Authority for Show Vendors, Form DTF-860C.

-4­
TSB-A-86 (33)S
Sales Tax
September 3, 1986

Vendors with a place of business in the State, where they regularly sell the type of
merchandise to be displayed at the show, will be already registered as vendors with the Tax
Department. Therefore, they can either request the issuance of a duplicate copy of their Certificate
of Authority (Form TP-153A) or apply for a separate Certificate of Authority for Show Vendors.
Vendors not already registered as sellers of the same type of goods they wish to display at
the show, must obtain such a certificate by filing Form DTF-860ABC with the New York State
Taxpayer Assistance Bureau. (20 NYCRR 533.2(b)). Additionally, each exhibitor is required to give
to the show promoter (here the landlord) its name, address and New York State sales tax
identification number. See New York State Department of Taxation and Finance Publication 815,
(3/85), Sales Tax Information for Show Vendors and Promoters, for details.

DATED: September 3, 1986

s/FRANK J. PUCCIA
Director
Technical Services Bureau

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.