Recreation and Admissions
This area of sales tax is very complex and constantly developing. The industry is continually inventing new ways to do business and even reinventing itself. The taxability of any transaction is highly dependent on the facts involved. This reference provides general guidance. Please contact the Tax Commission with questions or seek the advice of a competent tax professional.
Do you charge admission to a place or event? Do you charge for using, or privilege of using, recreational equipment, meeting rooms or facilities? This guide can help you understand sales tax requirements for your business as they relate to recreation and admissions in Idaho.
Recreation is defined* as the "refreshment in body or mind, as after work, by some form of play, amusement or relaxation or any form of play, amusement, or relaxation used for this purpose such as games, sports, or hobbies."
Consider the following when determining the taxability of a recreational activity:
|Taxable||Charges for the use of a facility for recreational purposes||Example: Charges to use a swimming pool|
|Taxable||Charges to participate in a recreational program or event||Example: Charges to participate in sports leagues|
|Not taxable||Separately stated charges for instruction||Example: Instructional fees for jazzercise, aerobics, dance, and swimming aren't taxable when they're separately stated from the facility and participation fee.
NOTE: Monitoring activities, such as a lifeguard at a swimming pool, aren't considered instruction.
* Webster's New World College Dictionary, 4th Edition, Ed. Michael Agnes, New York: Macmillan USA, 1999.