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Ruling 90-48

Intangible Property


Whether the sales of tour packages, which include tickets to an event and transportation, are subject to the sales and use tax.


X Corporation sells tour packages comprised of transportation to and attendance at events such as rock events. Transportation usually includes bus transportation and, on occasion, chartered flights. X Corporation provides tickets and passenger services only. It does not act as a promoter or primary ticket agent of a concert facility. X Corporation does not provide lodging, meals or memorabilia. X Corporation purchases all the components of its packages at retail and pays all corresponding sales taxes and admissions tax when and where applicable.


Section 12-407(2)(a) defines "sale" as meaning "any transfer of title, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration." The Department considers the sale of a concert ticket to constitute the sale of an intangible right which is not subject to our sales tax. See Dine Out Tonight Club v Department of Revenue Services 210 Conn. 567, 572 (1989). Since X Corporation has already paid the applicable admissions tax upon the purchase of the ticket, there are no admissions tax consequences in the subsequent resale of the ticket between X Corporation and its customer. If a "certificated air carrier" provides chartering service, such certificated air carrier would be responsible to charging sales and use tax to X Corporation.

It is ruled that the sales of tour packages by X Corporation, including tickets to an event and transportation, are not subject to sales and use tax.

James F. Meehan

May 14, 1990