TR 01: Admissions Tax

Admissions Tax "intends that every person who pays to gain admission to any place or event in the city that is open to the public shall pay and every person, whether owner, lessee, or operator, who charges or causes to be charged admission to any such place or event shall collect the tax imposed by this chapter." (section 3-4-1, BRC, 1981) Organizations that have a Boulder tax exempt license are not required to charge the admissions tax (section 3-4-5(b), BRC, 1981).

Admissions tax shall be charged on the price of tickets sold for an event. The City of Boulder admissions tax rate is identified in section 3-4-2 BRC, 1981. Incidental food served at the event must be taxed by the provider at the applicable food service rate in force when the charge occurs. (See section 3-2-5(b) , BRC, 1981 for current food service rate.)

The 5.0% admissions tax may be included in the price of the ticket sold. An admission ticket selling for $20.00 equals admission of $19.05 and admissions tax of $.95.

Examples:

1. A non-exempt organization holds a silent auction fund-raiser at a Boulder hotel. The organization sells admission tickets for $25.00, pays the hotel to serve free hors d'oeuvres and wine and has a cash bar. The organization must collect and remit admissions tax on tickets sold, remit food service tax on the sales at the cash bar (See TR18 "Eating and Drinking Establishments" for more detail), collect sales tax on the price of tangible personal property sold at the auction and pay food service tax to the hotel on the price charged for the wine and hors d'oeuvres.
2. A movie theater in Boulder charges $7.50 per person to view a movie, $4.00 for a bag of popcorn and $2.00 for soda. The theater must collect and remit 5.0% or $.36 (($7.50/1.05)*5.0%) per each ticket sold for admissions tax, and collect food service tax on all food and drinks sold.

Last Updated on Wednesday, 11 July 2012 11:14