A webinar was presented by Louisiana Department of Revenue to assist with questions regarding the new tax structure that will impact local non-profits and organizations.
Here are highlights of the conversation:
- Sponsorship of an event are not taxable, even if receiving tickets are a part of the benefits.
- The amount of the ticket and the applicable tax must be printed on the ticket if printed after April 1, 2016.
- Membership dues are taxable is they are really the sale of admission tickets to a facility (museum, theatre).
- Raffle tickets are not taxable.
- Gala (and like event) tickets are taxable.
- Booth fees for a festival are not taxable.
- Admission to a monthly luncheon (Rotary, AFP, Kiwanis) is not taxable.
Any resale of tangible personal property is taxable.
This conversation is certainly ongoing and LPA (Louisiana Partnership for the Arts) will update new information as it is shared. We encourage you to send any specific questions to the LDR (Louisiana Department of Revenue) contact info listed below.
Questions and Answers
If an event is held this August, and some tickets will be sold prior to June 30, and some will be sold after July 1st, how is state sales tax handled? Does the included tax amount have to be printed on the ticket, and if so, do both rates have to be printed on the ticket?-
-The sales tax imposed on the date of payment will apply.
-Yes, the amount of tax should be printed on the tickets if the tickets were printed after the sales tax went into effect.
Are admissions to a 5K run or sponsorships subject to sales tax?
For an annual banquet whose ticket price includes dinner/entertainment and a donation component, what portion of the ticket is subject to sales tax as admissions?
-The entire ticket is subject to sales tax because it is an entertainment.
Are membership dues paid to a little theater organization taxable?
–The dues are taxable only if the organization owns the theater and the membership allows free access to the theater.
-The membership dues could be taxed as admissions if the membership is really the sale of tickets.
A little theater organization renovating their theater-having a “brick sale” to raise funds- you can pay $100 to get your name inscribed on a brick that is part of the wall of the building- is this taxable?
–No, this is not the sale of tangible personal property nor is it a taxable service.
Is the sale of raffle tickets taxable?
-No, this is not the sale of tangible personal property
Admissions/Sponsorships. For a gala fund raising event the price of a ticket is $100 and anyone can buy a ticket for that price. They also reach out to major supporters and offer various sponsorship levels, such as $5000 will provide for acknowledgment in the program and a table with 10 seats, Would the 10 admissions be considered as non-taxable comp tickets in return for the donation, or would they be taxable at the $1,000 value of ten seats, or would the entire $5,000 be taxable admission for ten people?
-Nontaxable sponsorship, the value of the tickets is small compared to the total amount paid.
Museum Admissions; If a museum rents out a facility for a wedding or reception, is this considered taxable admission? They rent the facility to non-profit organizations that will hold a fundraiser in the museum, would this be a taxable admission?
-No, the rental is not taxable.
Civic or business organizations; An event such as an annual meeting is held at a hotel and includes lunch. Activities such as awards presentation and introduction of new officers are the program for the meeting. Fees are charged that cover the lunch and include some amount as a fundraiser for the organization. It would not seem that this would be a taxable admission under the statute. Is this a correct interpretation?
-No, this is not a taxable admission because the event is not entertainment.
Would contestant entry fees be subject to sales tax? For instance, an entry fee to participate in a state skeet shoot competition? What rate?
-Yes, this would be considered a taxable admission to an entertainment or recreational event. Taxable 5%.
Have contestant entry fees been subject to sales tax all along? Ex: Miss Louisiana Pageant entry fees?
-Most admissions to events sponsored by nonprofits were exempt under prior law.
How to Register for a Sales Tax Account
Nonprofit organizations that are not registered with the Louisiana Department of Revenue for sales tax should complete and submit an application for a Louisiana sales tax account.
Form R-16019 (Application for Louisiana Revenue Account Number) should be submitted.
The Department is encouraging nonprofit organizations with isolated sales tax collection and remittance obligations to register as “casual filers.” This will eliminate the need to file monthly or quarterly sales tax returns.
To register as a “casual filer,” applicants should write “casual filer” at the top of form R-16019. The completed form R-16019 may be submitted to the Department via email at firstname.lastname@example.org
Sales Tax Compliance
Sales tax returns and tax payments are due on or before the 20th of the month following the close of the calendar month or calendar quarter of the reporting period.
Assistance with sales tax questions
Call the Contact Center at 225-219-7462 or submit an inquiry through the sales tax inquiry mailbox at email@example.com