SN 94(7)

Exemptions From the Admissions Tax

This publication has been superseded by SN 2001(4)

PURPOSE: The purpose of this Special Notice is to describe the recently enacted exemption from admissions tax for admissions charges to any carnival or to any amusement ride.

EFFECTIVE DATE: Effective upon issuance and applicable to admission charges made on or after July 1, 1994.

STATUTORY AUTHORITY: Conn. Gen. Stat. §12-541, as amended by 1994 Conn. Pub. Acts 4, §22 (May Spec. Sess.).

DEFINITIONS:

"Carnival" means a traveling amusement show (American Heritage Dictionary, 2nd College Ed.).

"Amusement ride" means, for the purposes of the admissions tax, a ride that is confined to a restricted area or to a definite enclosure. Examples of amusement rides include, but are not limited to: pony rides, miniature autos or trains, ferris wheels, whips, merry-go-rounds, water slides, paddle boats, and tethered balloon rides.

CHARGES FOR ADMISSION: Charges made on or after July 1, 1994 for admission to carnivals are exempt from the 10% admissions tax. Charges for admission to other places of amusement, such as to fairs, amusement parks, bazaars, etc., are not affected by this exemption. NOTE: Fund-raising events (such as fairs and bazaars) sponsored by federally-qualified nonprofit organizations remain exempt from the admissions tax provided the organization assumes the financial risk associated with the event and the organization receives all proceeds from the event. Likewise, an admission charge of less than $1.00 remains exempt from the tax.

CHARGES FOR AMUSEMENT RIDES: Charges made on or after July 1, 1994 for amusement rides are exempt from the 10% admissions tax. The exemption applies to charges for rides regardless of where the ride is located, including but not limited to rides at fairs, carnivals, amusement parks, bazaars, etc.

ONE PRICE FOR ADMISSION AND RIDES: When one price is charged that includes admission to the place of amusement and admission to all rides, the entire amount will be subject to the tax unless the admission to the place of amusement is exempt from the tax. For example, if an amusement park charges one price for admission to the park and the price includes admission to all rides, the total cost of admission will be subject to the tax. However, if the amusement park makes separate charges, only the charge for admission to the park will be subject to the tax.

EFFECT OF THIS DOCUMENT: A Special Notice is a document that announces a new policy or practice in response to changes in State or federal laws or regulations or to judicial decisions. A Special Notice indicates the Department's informal interpretation of Connecticut tax law and may be referred to for general guidance by taxpayers or tax practitioners. 

SN 94(7)
Admissions tax
Issued: 6/24/94