Legal Definitions - admission tax

An admission tax is a type of tax levied by a government, typically at the state or local level, on the price paid for entry to certain events, venues, or attractions. This tax is usually collected by the venue or event organizer at the time of ticket purchase and then remitted to the relevant taxing authority. It is often imposed to generate revenue for local services, infrastructure projects, or specific cultural and recreational initiatives.

Here are some examples illustrating how an admission tax applies:

• Example 1: Sporting Event Ticket

  Imagine a fan purchasing a ticket online to attend a professional basketball game at a city stadium. When reviewing the total cost, they see a breakdown that includes the base ticket price, a service fee, and a separate line item labeled "City Entertainment Tax." This "City Entertainment Tax," calculated as a percentage of the ticket's face value, is an admission tax. The basketball team's organization collects this tax from the fan and then pays it to the city government, which might use the funds for public services or stadium maintenance.

• Example 2: Theme Park Entry

  A family plans a vacation to a popular theme park located in a specific county. When they buy their multi-day passes at the park's entrance, the receipt shows the cost of the passes plus an additional charge identified as a "County Tourism Surcharge." This surcharge, applied directly to the cost of entering the theme park, functions as an admission tax. The theme park collects this fee and remits it to the county, which may use the revenue to support local tourism promotion or infrastructure improvements benefiting visitors.

• Example 3: Live Theater Performance

  A couple buys tickets to see a play at a historic theater in their state. On their digital receipt, in addition to the ticket price and a booking fee, there is a small percentage added for a "State Arts & Culture Fund Contribution." This contribution, mandated by state law and applied to the cost of admission for live performances, is an admission tax. The theater collects this amount from ticket buyers and forwards it to the state, which then allocates the funds to support various arts and cultural programs across the state.