Who remitted tax on event tickets, complimentary tickets, outside-agency sales, and package admissions?

Plain-English summary

The redacted ticket issuer was responsible for remitting collected tax for the month when the event or performance occurred. It could include the tax in the ticket's face value. Before tickets went to an outside agency, the parties had to state in writing who would remit the tax.

A complimentary ticket with no dollar value was not taxable, but a charge to print that complimentary ticket was taxable. When an admission was included in a promotional package, tax was due to the supplier when the ticket was purchased. If the amusement ticket was separately stated, the package seller could issue a resale certificate to the supplier and collect tax from its customer on that ticket.

The STAR record metadata labels the subject "Ticketmaster," but the reproduced letter identifies the operator only as Company A. This page therefore records the transaction without asserting the redacted company's identity. The body is dated May 31, 1985, which this page uses instead of STAR's May 21 metadata date.

Common questions

When did the issuer remit tax? For the month in which the event occurred. Could tax be included in face value? Yes. Were free tickets taxable? No, but a printing charge was. How was an outside agency handled? Remittance responsibility had to be defined in writing.

Citations and references

The reproduced letter cites no numbered statute or rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8505L0644E12

Original ruling text

May 31, 1985

Dear ***:

Thank you for your letter of May 20, 1985 confirming a telephone
conversation with ***.

These four statements are correct.

1. Company A is responsible for remitting the taxes collected,
   for the month that the event or performance occurs.

2. Company A may include the tax in the face value of the ticket.
   (i.e.: Price + Tax = Total Face Value).

3. Before issuing tickets to an outside ticket agency, it must be
   defined, in writing whom will be responsible for remitting the
   tax to the state.

4. Since a Complimentary ticket does not have a dollar value, it is not
   subject to taxes. Any charge for printing a complimentary is subject to tax.

Question five and the answers follow:

5. When a ticket is included in a promotional package, is the tax collected
   on the total cost of the promotional package? If the tax is collected on the
   total package, how should Company A identify these tickets so that the tax is
   not paid twice?

• If an admission to an amusement, entertainment or recreational event is included
  in a package, tax is due to your supplier when the ticket is purchased. In the event
  an amusement ticket is separately stated, you may issue a resale certificate to your
  supplier and charge sales tax to your customer on the amusement ticket.

This opinion is based on the facts presented. If there are additional or different
facts, the opinion may change.

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. You may write us at the Tax
Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division