044.01 Definitions
044.01A Access to a place or location means
the right to be in the place or location for purposes of amusement,
entertainment, or recreation at a time when the general public is not allowed
at that place or location absent the granting of the admission.
044.01B Admission means the right or
privilege to have access to or use a place or location where amusement,
entertainment, or recreation is provided to an audience, spectators, or the
participants in the activity. Admission includes memberships that grant access
to a place or location, but do not include all the participation rights of
belonging to the organization including, but not limited to the right to: hold
office; vote for officers; and change the policies of the organization.
044.01B(1) Admission does not include a
membership which grants all the participation rights of belonging to an
organization, including, but not limited to: voting for officers; holding an
office; and having the ability to change the policies of the
organization.
044.01B(2) Admission
does not include a charge for leasing or renting a location, facility, or part
of a location or facility.
044.01B(3) Admission does not include a
charge for practice or instruction.
044.01C Entertainment means amusement or
diversion provided to an audience or spectators by performers.
044.01D Instruction means teaching skills
necessary to perform a sport or activity proficiently.
044.01E Lease or rental of a location,
facility, or part of a location or facility means that the owner or lessor:
044.01E(1) Cedes control of the location,
facility, or part of the location or facility for a period of time;
and
044.01E(2) Cedes the right to
determine who is granted access to the location, facility, or part of a
location or facility to the lessee for the period of the lease or rental.
044.01F Practice means
an organized time for instruction, training, or rehearsing skills to become
proficient in the sport or activity.
044.01G Recreation means a sport or activity
engaged in by participants for purposes of refreshment, relaxation, or
diversion of the participants. Recreation includes competition unless it is a
professional competition. Whether a competition is professional or recreational
is determined based on the nature of the event as a whole and not the
professional status of any particular competitor.
044.02 Sales of Admissions Subject to Sales
Tax
The gross receipts from selling admissions, including
surcharges, are subject to sales tax. This includes season or subscription
tickets for specific occasions or for multiple occasions, either limited or
unlimited, during a period of time.
044.02A Cover charges, minimum charges,
charges for reservations, or any similar charges are charges for
admissions.
044.02B Charges by an
organizer of a recreational sports league or competition to teams or
individuals to participate where the games or competitions occur in locations
under the control of the organizer at the time the games or competitions occur
are admissions subject to sales tax unless an exemption applies.
044.02B(1) Charges to teams to participate in
the league or competition include mandatory gate fees charged in lieu of
collecting gate admissions to spectators and other mandatory charges to teams
or participants.
044.02B(2) Charges
by the team to individuals who will be participating are not admissions, unless
the charge is by the organizer of the league. For example, amounts charged by a
city recreation department to teams to participate in a city-organized adult
softball league are taxable admissions, but the amount the teams collect from
the individuals to cover team expenses, including the entry fee, are not.
044.02C When an
admission to an activity or a membership constituting an admission is combined
with soliciting a contribution, the portion or the amount charged representing
the fair market price of the admission is subject to sales tax. The fair market
value is determined according to Reg-1-090.09, Nonprofit
Organizations.
044.02D Charges that
are not admissions.
044.02D(1) Charges by an
organizer of a recreational sports league or competition where the games or
competition occur in locations that are not under the control of the organizer
during the competition are not admissions. Examples include running events
conducted on public streets and trails.
044.02D(2) Charges for participating in a
workshop, seminar, class, convention, business meeting, or similar events
primarily for training or educational purposes are not admissions.
044.02D(3) Charges for operating a coat or
hat checkroom.
044.02D(4) Charges
for operating a summer camp or a day camp are not admissions.
044.03 Places of
Amusement, Entertainment, or Recreation
Places where amusement, entertainment, or recreation are
typically provided to an audience, spectators, or participants in the activity
include, but are not limited to: amusement parks; archery ranges; art exhibits;
auditoriums; baseball parks; bowling alleys; cabarets; country clubs; dance
halls; driving ranges; fairgrounds; fishing ponds; stadiums; golf courses;
gymnasiums; health clubs; miniature golf courses; movie theaters; museums;
night clubs; parks; race tracks; racquetball courts; skating rinks; batting
cages; skeet ranges; street fairs; swimming pools; superslides; theaters; trap
ranges; and toning salons.
044.03A
Owners or operators who charge individuals for access to these places are
selling admissions subject to sales tax, even if some of the individuals use
the facility for practice or instruction.
044.03B If the owner or operator sets aside
certain times for practice or instruction, charges to the students during these
times are not admissions. Leasing or renting one of these places, in whole or
in part, for purposes of practice or instruction conducted by the lessee, is
not an admission.
044.03C To be
considered practice or instruction, access must be limited to those
participating in the practice or instruction.
044.04 Property Purchased by the Owner or
Operator
The owner or operator of a place of amusement, entertainment,
or recreation is the consumer of any property purchased, leased, or rented for
use in the business of providing amusement, entertainment, or recreation. The
owner or operator must pay sales or use taxes on these purchases, leases, or
rentals.
044.04A If a separate charge,
in addition to the admission, is made for renting property such as bowling
shoes, roller skates, stadium seat cushions, etc., the gross receipts from the
rental of this property are taxable.
044.04B The owner or operator may purchase
property to be used solely for rental or lease using a resale
certificate.
044.05
Sales Tax May Be Included in the Price Charged
The sales tax may be included in the total admission price.
If the sales tax is included in the total admission price, a statement that the
sales tax is included in the price must appear on the admission ticket, or on a
sign posted in a conspicuous place where the admissions are
sold.
044.06 Applicable Rate
and Location
The sales tax on admissions is calculated at the rate in
effect on the date of the sale at the place where the admission will be
granted.
044.06A If a single charge is
made to cover admission to more than one attraction under the same management,
the sales tax is computed on the basis of a single charge at the rate
applicable at the business location of the retailer.
044.06B If the admission to each attraction
can be purchased separately, the sales tax is computed on each charge at the
rate applicable at the location of each attraction; or on the total of the
separate charges at the rate applicable at the business location of the
retailer.
044.07 Unused
Tickets
No refund or credit of the sales tax is allowed because an
admission was not used, unless the selling price of the ticket was also
refunded.
044.08 Ticket
Resellers
Admissions cannot be resold because the second seller does
not have the right to grant or deny access to the place or location. Ticket
resellers are providing a nontaxable service.
044.09 Exemptions
044.09A Admissions charged by elementary or
secondary schools are exempt.
044.09B Admissions charged by school
districts, student organizations, or parent-teacher associations to an event or
activity held in an elementary or secondary school during the regular school
day, or at an approved function of the school, are exempt. Admissions charged
by the Nebraska School Activities Association, athletic or academic
conferences, or similar organizations that have been approved by the elementary
or secondary schools, are exempt.
044.09C Admissions to political fund-raising
events by ballot question committees, candidate committees, independent
committees, or political party committees, as defined in the Political
Accountability and Disclosure Act, or committees for candidates for federal
office, are exempt.
044.09D Amounts
charged by political subdivisions or organizations that are exempt from income
taxes under § 501(c)(3) of the Internal Revenue Code of 1986, as amended,
(IRC) to participate in youth sports events, youth sports leagues, or youth
competitive educational activities are exempt.
044.09D(1) Competitive educational activity
means a tournament or a single competition that occurs over a limited period of
time annually or intermittently where the participants compete in an activity
related to an intellectual field.
044.09D(2) Sports event means a tournament or
a single competition that occurs over a limited period of time annually or
intermittently where the participants engage in a sport.
044.09D(3) Sports league means an organized
series of sports competitions taking place over several weeks or months between
teams or individuals that are members of the league.
044.09D(4) Youth sports event, youth sports
league, or youth competitive educational activity means an event, league, or
activity that is restricted to participants who are less than 19 years of
age.
044.09E Charges for
participants in any activity provided by a nonprofit organization that is
exempt from income tax under IRC § 501(c)(3), which conducts statewide
sport events with multiple sports for both adults and youth are
exempt.
044.09F Charges for
participants in any activity provided by a nonprofit organization that is
exempt from income tax under IRC § 501(c)(3), which is affiliated with a
national organization, primarily dedicated to youth development and healthy
living, and which offers sports instruction and sports leagues or sports events
in multiple sports are exempt.
044.09G The exemptions in Reg-1-044.09D
through 044.09F include any separately-stated charges to teams or participants
that must be paid in order to compete.
044.09G(1) For example, if an organization
described in Reg-1-044.09E or
044.09 F charges an entry fee to
teams to compete in a youth softball or baseball tournament, and also charges
each team a separate, mandatory "gate fee" in lieu of charging admissions to
spectators, both the entry fee and the gate fee are considered charges to
participate and are exempt.
044.09G(2) However, if the organization
charges an entry fee, but also allows teams to purchase tournament passes which
allow spectators to enter the venue, and the teams may purchase as many passes
as they wish or no passes at all, the charges for the tournament passes are not
considered charges to participants and are not exempt. The IRC § 501(c)(3)
organization must collect, report, and remit sales tax on sales of the
tournament passes.
044.09H Beginning January 1, 2016, admissions
and memberships to a nationally accredited zoo or aquarium operated by a public
or nonprofit corporation primarily for educational, scientific, or tourism
purposes are exempt.
044.10 The gift of an admission is exempt.
The donor must pay sales tax on any payments made to obtain the admission that
was given away.
044.11
[Repealed]
044.12
[Repealed]
044.13
[Repealed]
044.14
[Repealed]
