Recreation and Admissions Events

Tournaments and events

You must collect sales tax on fees you charge participants to enter a tournament or to participate in an organized event. You also must pay sales or use tax on any tangible personal property used or consumed during the event. This includes trophies or prizes handed out at the end of the event.

Entry fees (professional athletes or events)

Fees that professional athletes pay to participate in sanctioned events or tournaments aren’t taxable. The professional athlete’s participation isn’t for recreation; it’s as an occupation.

Example: Professional golf tournaments

Mixed participants (professional and amateur)

You might have an event that has both professional and amateur athlete participation. Organizers normally segregate these events into different classifications for the athletes.

  • Entry fees for the professional classifications aren’t taxable.
  • Entry fees for the amateur classifications are taxable.

Examples of events for mixed participants:

  • Pro-Am golf tournaments