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Thread: Do you have to charge Sales Tax?

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  1. Default Do you have to charge Sales Tax? 
    #1
    Join Date
    Jul 2012
    Posts
    8
    I'm curious if anyone has to charge and remit sales taxes to the state for the admission price? We are a first year haunt and I've found that our state mentions nothing about sales taxes for a haunted attraction, so I don't know if its exempt from sales tax or not.
     

  2. Default Oh yeah! 
    #2
    Join Date
    Feb 2012
    Location
    Atlantic City (area), NJ
    Posts
    224
    Don't know where you live but in this money grubbing state of NJ you must collect sales tax on nearly everything! Just like admission to a movie theater or an amusement park...the state wants their cut! Charities may be exempt but I would call your local tax office to double check. I know many businesses that folded because they "didn't think" they had to pay until the state came calling a few years down the road & added on their fines & penalties, couldn't pay & had to close their doors. The tax man can close you down quicker than anything...double check BEFORE opening...avoid the aggg! Just my 2 cents!



    P.
     

  3. Default  
    #3
    Join Date
    Dec 2011
    Posts
    613
    Quote Originally Posted by pickle View Post
    The tax man can close you down quicker than anything.
    Quicker than the Fire Marshall or the Building Inspector? Wow, that's frightening.

    Just when you think you have all of your compliance issues dealt with.



    Quote Originally Posted by C&D_Haunts View Post
    I'm curious if anyone has to charge and remit sales taxes to the state for the admission price? We are a first year haunt and I've found that our state mentions nothing about sales taxes for a haunted attraction, so I don't know if its exempt from sales tax or not.
    Just charge $10, $15, or $20 a ticket, "tax included", and then budget for whatever the tax rate is in your town or municipality, and round it up to the nearest whole number or so that gives you good numbers to work with. So, for instance, here in DFW, TX, the sales tax rate is 8.25%, so I would round it up to a nice, round 10% or so, to make the math easy. I'm not sure how sales tax rates figure into theatrical productions or attractions, but you get the idea. I'm sure it works in some similar way. (Allen would know.)

    So, for instance, if you had a $100 ticket with a tax rate of 8.25%, you'd pay $108.25. However, if your price is tax included, or that is to say $100 divided by 1.0825, then that's approx. $92.38 for the after-tax gross of the ticket, and $7.62 for the included tax.

    In proper haunt numbers:

    • For a $10 ticket, you are getting about $9.24 in after-tax gross, with approx. $0.76 saved for taxes.
    • For a $15 ticket, you are getting about $13.85 in after-tax gross, with approx. $1.15 saved for taxes.
    • For a $20 ticket, you are getting about $18.47 in after-tax gross, with approx. $1.53 saved for taxes.


    If we were to pick a nice rate that yields round numbers, like, say, a rate of 11.11%, then we should be more than covered, and get a nice windfall profit savings if we don't have to pay.

    To wit:

    • For a $10 ticket, you are getting about $9.00 in after-tax gross, with approx. $1.00 saved for taxes.
    • For a $15 ticket, you are getting about $13.50 in after-tax gross, with approx. $1.50 saved for taxes.
    • For a $20 ticket, you are getting about $18.00 in after-tax gross, with approx. $2.00 saved for taxes.



    Then, if the taxman comes knocking, he gets whatever he wants, and you breathe easy cuz you got it covered (unless your sales tax rate exceeds 11.11%, which I would classify as predatory). If the taxman doesn't come knocking, then you get a nice windfall profit of an additional 10%. Not a bad thing.

    Either way, you win, and don't have to worry about the money or the math on the front end, knowing you'll be covered when the day is done and it's time to count your chips.

    C.
     

  4. Default  
    #4
    Join Date
    Nov 2008
    Location
    Mesquite, TX
    Posts
    2,788
    Always pay sales tax. Include it in your admission and just charge a dollar more. Report honestly and save yourself the head ache later. Try to set yourself up so you pay annually instead of quarterly, otherwise you will need to file three forms at zero income and they could revoke the business permit for inactivity. Contact your states comptroller for all the info you need.
    Allen H
     

  5. Default  
    #5
    Join Date
    Dec 2010
    Location
    Blacksburg, SC
    Posts
    202
    Check with your state because in SC we pay an admissions tax instead of sales tax on any tickets and then any food/drinks/shirts etc. require sales tax. I was told at the last minute last year and if you don't have the permit displayed in your ticket booth it is something like a $500 per night fine and 30 days in jail, so who knows? haha
     

  6. Default Glad to be in NC/VA 
    #6
    Join Date
    Mar 2011
    Location
    Raleigh, NC
    Posts
    389
    Wow glad to be doing business in NC and VA. Here we do not pay sales tax on admission tickets. Just on merch sold. I verified this with the tax office when I tried getting a resale license, and they wouldnt give it to me because I did not sell merch at the time.
    Travis "Big T" Russell
    President
    Big T Productions Inc

    Owner and Operator of "The Plague" and "Camp Nightmare"

    Customer Quote of the year: "Damn, I pissed myself"
     

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