La. Admin. Code tit. 61, § I-4413 - Admissions to Entertainment Furnished by Certain Domestic Nonprofit Corporations
A.R.S.
47:305.13 grants a limited exemption to
organizations created under the laws of the state of Louisiana as nonprofit,
charitable, educational, or religious organizations from state and local sales
or use tax on the sale of admissions to entertainment events. Such sales of
admissions are exempt only when the entire proceeds, with the exception of
necessary expenses connected with the event, are used for the purpose for which
the organization was formed. The requirement that the entire proceeds from the
sales of tickets, except for necessary expenses, must be used for the purpose
for which the organization was formed eliminates from exempt status any event
where payment has been made to a promoter or promotional firm for engaging the
services of persons not directly connected with the sponsoring
organization.
B. Only sales of
admissions made by recognized domestic nonprofit, charitable, educational, or
religious organizations are exempt under this Section. In order to meet the
nonprofit requirement, an organization or corporation must have no provision
for making of dividends or payments of any profits to any organizers or
stockholders and none of the income may inure to the benefit of any private
shareholder or individual. In order to qualify as a charitable organization, it
must freely and voluntarily minister to the physical needs of those unable to
help themselves, or promote the welfare of mankind at large, or of a community,
or of some class from a part of a community, or be one which would not deny
assistance to persons unable to pay even though it may charge for assistance to
those who are able to pay. An educational institution is construed to mean a
school, seminary, college, or other institution having an instructional staff
and a curriculum designed to cultivate the mental, moral, religious, or
physical facilities of those whom it seeks to educate.
Notes
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