Admissions to Amusement, Athletic, Entertainment, or Recreational Events or Places

Introduction: This tax release applies to all sales and purchases of admissions made on and after October 1, 2009. For the proper Wisconsin sales and use tax treatment of sales and purchases of admissions prior to October 1, 2009, see the tax release that was published in Wisconsin Tax Bulletin 114 (July 1999). This tax release explains who is responsible for remitting Wisconsin tax on sales of admissions to amusement, athletic, entertainment, or recreational events and places, and when and where the sales of admissions take place.

Statutes: Sections 77.51(1f), (13g), and (14)(intro.), 77.52(2)(a)2.a. and (20), 77.522, and 77.53(3), Wis. Stats. (2009-10).

Wis. Adm. Code: Sections Tax 11.65, 11.945, 11.97, and 11.985 Wis. Adm. Code (November 2010 Register)

Background: Section 77.52(20), Wis. Stats. (2009-10), imposes Wisconsin sales tax on the entire sales price of a "bundled transaction," with certain exceptions. (See Exception, below.)

Section 77.51(1f), Wis. Stats. (2009-10), defines a bundled transaction to mean the retail sale of 2 or more products, not including real property and services to real property, if the products are distinct and identifiable products and sold for one nonitemized price. However a "bundled transaction" does not include, among other things:

(a) The sale of any products for which the sales price varies or is negotiable based on the purchaser's selection of the products included in the transaction.

(b) A transaction that includes taxable and nontaxable products, if the seller's purchase price or the sales price of the taxable products is no greater than 10 percent of the seller's total purchase price or sales price of all the bundled products, as determined by the seller using either the seller's purchase price or sales price, but not a combination of both.

EXCEPTION: If the retailer can identify by reasonable and verifiable standards using the retailer's books and records that are kept in the ordinary course of the retailer's business for other purposes, the portion of the price that is attributable to products that are not subject to tax, that portion of the sales price is not taxable. This exception does not apply to a transaction that includes, among other products, food or food ingredients.

Section 77.51(13g), Wis. Stats. (2009-10), provides in part that a "retailer engaged in business in this state" includes any retailer owning any real property in this state, renting out any tangible personal property located in this state, maintaining, occupying, or using, permanently or temporarily, directly or indirectly, or through a subsidiary or agent, an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business in this state. It also includes any retailer who has any representative, agent, salesperson, canvasser, or solicitor operating in Wisconsin under the authority of the retailer or its subsidiary for the purpose of selling, delivering, or taking orders for tangible personal property or taxable services, as well as any person who has an affiliate in this state, if the person is related to the affiliate and if the affiliate uses facilities or employees in this state to advertise, promote, or facilitate the establishment of or market for sales of items by the related person to purchasers in this state or for providing services to the related person's purchasers in this state, including accepting returns of purchases or resolving customer complaints.

Section 77.51(14)(intro.), Wis. Stats. (2009-10), provides that the definition of "sale" includes the transfer of the ownership of, title to, possession of, or enjoyment of tangible personal property or services for use or consumption, but not for resale.

Section 77.52(2)(a)2.a., Wis. Stats. (2009-10), imposes Wisconsin sales tax on the " ...sale of admissions to amusement, athletic, entertainment or recreational events or places..."

Section 77.522, Wis. Stats. (2009-10), provides the general rules for determining where a sale is sourced (i.e., where the sale takes place). Services, including the sale of admissions to amusement, athletic, entertainment or recreational events or places, are sourced to the location where the purchaser makes first use of the service.

Section 77.53(3), Wis. Stats. (2009-10), imposes Wisconsin use tax on every retailer engaged in business in Wisconsin who makes sales of tangible personal property or taxable services that are sourced to Wisconsin under sec. 77.522, Wis. Stats. (2009-10).

"Event" and "place" as used in this tax release mean an amusement, athletic, entertainment, or recreational event or place.

Who is the Retailer?

Generally, the retailer responsible for remitting Wisconsin sales tax on sales of admissions is the person engaged in the business of selling admissions to the "consumer." A "consumer" is a person who purchases an admission from a retailer. A "consumer" will generally use that admission to obtain admittance to the event. A "consumer" does not include a person who purchases an admission and then resells the admission in the regular course of the person's business. Therefore, a retailer of admissions may include not only the person who sponsors the event, but also ticket brokers, travel agents, and other persons engaged in the business of selling admissions to consumers. (Note: A retailer that is responsible for remitting the tax on the sale of an admission is responsible for remitting all of the state and local taxes that apply to that sale based on the location to which the sale is sourced (i.e., the location of the event to which the admission applies).)

Example: Football Team A is scheduled to play a football game in Madison, Wisconsin at XYZ Stadium. Football Team A sells admissions to the game for $25 at its ticket window outside XYZ Stadium. The admissions are sold to individuals, ticket brokers, and travel agents and are paid for at the ticket window. The individuals who purchase the admissions from Football Team A do not resell the admissions, but use them to enter the game. Football Team A receives the proceeds from the sales of the admissions to such persons and controls the admittance of persons to the game.

The ticket brokers and travel agents are engaged in the business of selling admissions to consumers and provide Football Team A with fully completed exemption certificates claiming the resale exemption for the admissions they purchase. The ticket brokers and travel agents then resell the admissions to consumers.

Sales by Football Team A: Football Team A is the retailer responsible for remitting the applicable Wisconsin state and local sales taxes on its sales of admissions to individuals (i.e., consumers). Football Team A is not responsible for remitting Wisconsin sales tax on its sales of admissions to ticket brokers and travel agents engaged in the business of selling admissions, because Football Team A received fully completed exemption certificates from the ticket brokers and travel agents.

Sales by Ticket Brokers and Travel Agents: The ticket brokers and travel agents are the retailers responsible for remitting sales tax on their sales of admissions to consumers. (Note: Ticket brokers, travel agents, and other retailers that are not registered and are not required to be registered to collect Wisconsin sales or use tax are not required to collect Wisconsin sales or use tax on sales of admissions to events in Wisconsin.)

When and Where Do Sales of Admissions Take Place?

When does the sale take place?

The sale of an admission takes place at the time the retailer agrees to sell the admission to the consumer. Examples 1 to 20 illustrate when the retailer agrees to sell the admission to the consumer.

Where does the sale take place?

The location of the sale of an admission to an amusement, athletic, entertainment, or recreational event and the tax rate that applies is based on the location where the event takes place, since that is where the purchaser will make first use of the admission. (Note: Admissions to events or places located outside of Wisconsin are not subject to Wisconsin sales tax.)

Example: Football Team A is scheduled to play a football game in Madison, Wisconsin at XYZ Stadium. Football Team A sells admissions to the game for $25 at its ticket window outside XYZ Stadium. The admissions are sold to individuals, ticket brokers, and travel agents and are paid for at the ticket window. The individuals do not resell the admissions purchased from Football Team A, but use them to enter the game. Football Team A receives the proceeds from the sales of these admissions and controls the admittance of persons to the game.

The ticket brokers and travel agents are engaged in the business of selling admissions to consumers and provide Football Team A with exemption certificates claiming the resale exemption for the admissions they purchase. The ticket brokers and travel agents resell the admissions they purchased from Football Team A. The admissions are sold to various individuals (i.e., consumers) from the ticket brokers' and travel agents' locations in Milwaukee, Wisconsin.

Sales by Football Team A: Football Team A is the retailer responsible for remitting sales tax on its sales of admissions to individuals (i.e., consumers). These sales are sourced to the location of XYZ Stadium in Madison, Wisconsin, since that is where the purchaser will make first use of the admission (i.e., where the purchaser will use the ticket to be admitted to the event).

This sale takes place at the time Football Team A agrees to sell the admissions to the individuals.

Sales by Ticket Brokers and Travel Agents: The ticket brokers and travel agents are the retailers responsible for remitting the Wisconsin sales tax on their sales of admissions to consumers. These sales are sourced to the location of XYZ Stadium in Madison, Wisconsin, since that is where the purchaser will make first use of the admission (i.e., where the purchaser will use the ticket to be admitted to the event) and take place at the time the ticket broker or travel agent agrees to sell the admission.

What Amount is Taxable?

Tax is owed on the "retailer's" selling price of the admission to the consumer.

Example: Football Team A sells an admission for $25 to Ticket Broker B. Ticket Broker B gives Football Team A a fully completed exemption certificate claiming the resale exemption on its purchase of the admission. Ticket Broker B resells the admission to Individual C for $40.

Football Team A is not responsible for remitting Wisconsin sales tax on its sale of the admission to Ticket Broker B for $25, since Ticket Broker B provided Football Team A with a fully completed exemption certificate. Ticket Broker B is the retailer and is responsible for remitting sales tax to the Department of Revenue on the $40 sale of the admission to Individual C.


Examples of Sales of Admissions.

The following examples illustrate (1) who is the retailer responsible for remitting the Wisconsin sales and use tax on sales of admissions; (2) when the sale takes place; (3) where the sale takes place; and (4) the amount subject to Wisconsin sales or use tax. (Note: In each of the following examples, if the retailer does not charge the proper Wisconsin sales tax to the purchaser, the purchaser is liable for remitting the applicable Wisconsin use tax to the Department of Revenue.)

"Ticket," as used throughout the following examples, means the piece of paper which is generally given to a person by the retailer as evidence that the person has purchased an admission to attend the event.

Index to Examples
Example 1 Sale of Ticket by Event Provider at Ticket Window
Example 2 Telephone Call to Event Provider to Order Ticket
Example 3 Order Blank for Tickets Sent to Event Provider
Example 4 Person Purchases Ticket to Game, But Does Not Attend Game (No-shows)
Example 5 Sale by Person Who is Not Event Provider
Example 6 Sale by Person Not Engaged in Business in Wisconsin
Example 7 Sale by Person Located Outside Wisconsin and Engaged in Business in Wisconsin
Example 8 Event Provider Sells Ticket to Individual Who is Not Engaged in a Business Requiring the Holding of a Seller's Permit, Who Sells Ticket to Ticket Broker, Who Sells Ticket to Different Individual
Example 9 Event Provider Sells Ticket to Company Engaged in a Business Requiring the Holding of a Seller's Permit, Who Sells Ticket to Ticket Broker, Who Sells Ticket to Individual
Example 10 Event Provider Sells Ticket to Company Engaged in a Business Requiring the Holding of a Seller's Permit, Who Sells Ticket to Individual
Example 11 Event Provider Sells Ticket to Ticket Broker, Who Sells Ticket to Different Ticket Broker, Who Sells to Individual
Example 12 Individual Calls Event Provider's Toll-Free Number and Places Order With Operator (Who May or May Not be in Wisconsin) for the Ticket
Example 13 Individual Logs Onto Event Provider's Website and Provides Credit Card Number Via the Internet
Example 14 Event Takes Place Outside of Wisconsin
Example 15 Sale of a "Package Deal" Which Includes Lodging, Ticket to Event, and Transportation
Example 16 Sale of a "Package Deal" Which Includes Lodging, Meals, Ticket to Event, and Transportation
Example 17 Sale of Ticket Holder's Tickets Using Football Team B's Website - Football Team B is Retailer
Example 18 Sale of Ticket Holder's Tickets Using Football Team B's Website - Football Team B is Retailer. Tickets Delivered Using Will Call
Example 19 Sale of Ticket Holder's Tickets Using Ticket Broker's Website - Ticket Broker is Retailer, But Does Not Have Possession of Tickets
Example 20 Sale of Ticket Holder's Tickets Using Ticket Broker's Website - Ticket Broker is Retailer and Takes Possession of Tickets

Example 1 - Sale of Ticket by Event Provider at Ticket Window

Who is the retailer? Baseball Team B
When does sale take place? At the time Baseball Team B accepts $20 payment from Individual A
Where does sale take place? At the baseball stadium in Milwaukee
What amount is taxable? $20

Note: In the above example, the answers would still be the same if the ticket is mailed to Individual A or Individual A obtains the ticket at a later date.

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Example 2 - Telephone Call to Event Provider to Order Ticket

Who is the retailer? Concert Provider B
When does sale take place? At the time Concert Provider B charges the $25 to Individual A's credit card account
Where does sale take place? At the location of the concert in Madison
What amount is taxable? $25 (the $5 convenience fee is part of the sales price of the ticket)

Note: In the above example, the answers would still be the same if the ticket is mailed to Individual A.

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Example 3 - Order Blank for Tickets Sent to Event Provider

Who is the retailer? Football Team B
When does sale take place? At the time Football Team B charges the $24 to Individual A's credit card account
Where does sale take place? At the location where the football game will be played in Madison
What amount is taxable? $24 (the $4 shipping and handling fee is part of the sales price of the ticket)

Note: In the above example, the answers would still be the same if Individual A obtains the ticket at a later date, such as at the "Will Call" window on the day of the game.

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Example 4 - Person Purchases Ticket to Game, But Does Not Attend Game (No-shows)

Who is the retailer? Football Team B
When does sale take place? At the time Football Team B charges the $24 to Individual A's credit card account
Where does sale take place? At the location where the football game will be played in Madison
What amount is taxable? $24 (the $4 shipping and handling fee is part of the sales price of the ticket)

Note: Even though Individual A did not attend the game, the sale of the admission is still subject to Wisconsin sales tax.

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Example 5 - Sale by Person Who is Not Event Provider

In this example, there are two separate transactions to consider: (1) the sale from Soccer Team C to Ticket Broker B and (2) the sale from Ticket Broker B to Individual A.

Transaction 1 - Sale from Soccer Team C to Ticket Broker B

Who is the retailer?
When does sale take place?
Where does sale take place?
What amount is taxable?
This sale is not a retail sale subject to tax. It is a sale for resale.

Transaction 2 - Sale from Ticket Broker B to Individual A

Who is the retailer? Ticket Broker B
When does sale take place? At the time Ticket Broker B accepts the $50 payment from Individual A
Where does sale take place? At the location of the soccer game in Milwaukee
What amount is taxable? $50

Note: In the above example, the answers would still be the same if the ticket is mailed to Individual A, or Individual A obtains the ticket at a later date.

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Example 6 - Sale by Person Not Engaged in Business in Wisconsin

In this example, there are two separate transactions to consider: (1) the sale from Baseball Team C to Ticket Broker B and (2) the sale from Ticket Broker B to Individual A.

Transaction 1 - Sale from Baseball Team C to Ticket Broker B

Who is the retailer?
When does sale take place?
Where does sale take place?
What amount is taxable?
This sale is not a retail sale subject to tax. It is a sale for resale.

Transaction 2 - Sale from Ticket Broker B to Individual A

Who is the retailer? Ticket Broker B *
When does sale take place? At the time Ticket Broker B accepts the $50 payment from Individual A
Where does sale take place? At the location of the baseball game in Milwaukee
What amount is taxable? $50 *

* Since Ticket Broker B is not engaged in business in Wisconsin, Ticket Broker B would not be required to remit Wisconsin sales or use tax on the sale to Individual A. Individual A owes Wisconsin use tax on the $50 because Individual A used the ticket in Wisconsin to obtain admittance to the game. Credit would only be allowed for the sales or use tax properly paid on the sale from Ticket Broker B to Individual A.

Note: In the above example, the answers would still be the same if the ticket is mailed to Individual A, or Individual A obtains the ticket at a later date.

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Example 7 - Sale by Person Located Outside Wisconsin and Engaged in Business in Wisconsin

In this example, there are two separate transactions to consider: (1) the sale from Soccer Team C to Ticket Broker B and (2) the sale from Ticket Broker B to Individual A.

Transaction 1 - Sale from Soccer Team C to Ticket Broker B

Who is the retailer?
When does sale take place?
Where does sale take place?
What amount is taxable?
This sale is not a retail sale subject to tax. It is a sale for resale.

Transaction 2 - Sale from Ticket Broker B to Individual A

Who is the retailer? Ticket Broker B *
When does sale take place? At the time Ticket Broker B accepts the $50 payment from Individual A
Where does sale take place? At the location of the soccer game in Milwaukee
What amount is taxable? $50 *

* Since Ticket Broker B is engaged in business in Wisconsin and the game takes place in Wisconsin, Ticket Broker B would be required to remit Wisconsin tax on the sale to Individual A.

Note: In the above example, the answers would still be the same if the ticket is mailed to Individual A or Individual A obtains the ticket at a later date.

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Example 8 - Event Provider Sells Ticket to Individual Who is Not Engaged in a Business Requiring the Holding of a Seller's Permit, Who Sells Ticket to Ticket Broker, Who Sells Ticket to Different Individual

In this example, there are three separate transactions to consider: (1) the sale from Football Team B to Individual A for $25; (2) the sale from Individual A to Ticket Broker C for $40; and (3) the sale from Ticket Broker C to Individual D for $75 plus the $5 shipping and handling fee.

Transaction 1 - Sale from Football Team B to Individual A

Who is the retailer? Football Team B *
When does sale take place? At the time Football Team B accepts the $25 payment from Individual A
Where does sale take place? At the location of the football game in Green Bay
What amount is taxable? $25

* Football Team B is required to collect sales tax on the sale of the ticket to Individual A assuming Individual A did not provide a fully completed exemption certificate to Football Team B.

Transaction 2 - Sale from Individual A to Ticket Broker C

This sale is exempt from Wisconsin sales and use tax because Individual A is not engaged in a trade or business requiring the holding of a seller's permit and the sale qualifies as an exempt occasional sale. Note: If Individual A held or was required to hold a seller's permit, the sale to Ticket Broker C would still not be taxable if Ticket Broker C provides a fully completed exemption certificate to Individual A claiming resale. Ticket Broker C could provide an exemption certificate claiming resale since Ticket Broker C is reselling the ticket to Individual D.

Transaction 3 - Sale from Ticket Broker C to Individual D

Who is the retailer? Ticket Broker C
When does sale take place? At the time Ticket Broker C charges $80 to Individual D's credit card account
Where does sale take place? At the location of the football game in Green Bay
What amount is taxable? $80 * (the $5 shipping and handling fee is part of the sales price of the ticket)

* Since Ticket Broker C holds a Wisconsin seller's permit and the game takes place in Wisconsin, Ticket Broker C is required to remit Wisconsin tax on the sale to Individual D.

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Example 9 - Event Provider Sells Ticket to Company Engaged in a Business Requiring the Holding of a Seller's Permit, Who Sells Ticket to Ticket Broker, Who Sells Ticket to Individual

In this example, there are three separate transactions to consider: (1) the sale from Football Team B to Company A for $25; (2) the sale from Company A to Ticket Broker C for $40; and (3) the sale from Ticket Broker C to Individual D for $80 ($75 plus the $5 shipping and handling fee).

Transaction 1 - Sale from Football Team B to Company A

Who is the retailer?
When does sale take place?
Where does sale take place?
What amount is taxable?
This sale is not a retail sale subject to tax. It is a sale for resale.

Transaction 2 - Sale from Company A to Ticket Broker C

Who is the retailer?
When does sale take place?
Where does sale take place?
What amount is taxable?
This sale is not a retail sale subject to tax. It is a sale for resale.

Transaction 3 - Sale from Ticket Broker C to Individual D

Who is the retailer? Ticket Broker C
When does sale take place? At the time Ticket Broker C charges the $80 to Individual D's credit card account
Where does sale take place? At the location of the football game in Green Bay
What amount is taxable? $80 (the $5 shipping and handling fee is part of the sales price of the ticket)

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Example 10 - Event Provider Sells Ticket to Company Engaged in a Business Requiring the Holding of a Seller's Permit, Who Sells Ticket to Individual

In this example, there are two separate transactions to consider: (1) the sale from Football Team B to Company A for $25 and (2) the sale from Company A to Individual C for $40.

Transaction 1 - Sale from Football Team B to Company A

Who is the retailer?
When does sale take place?
Where does sale take place?
What amount is taxable?
This sale is not a retail sale subject to tax. It is a sale for resale.

Transaction 2 - Sale from Company A to Individual C

Who is the retailer? Company A *
When does sale take place? At the time Company A accepts the $40 payment from Individual C
Where does sale take place? At the location of the football game in Green Bay
What amount is taxable? $40 *

* Since Company A is engaged in a trade or business requiring the holding of a seller's permit at the time Company A sells the ticket to Individual C, Company A is required to remit Wisconsin sales tax on the $40 sale of the ticket.

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Example 11 - Event Provider Sells Ticket to Ticket Broker, Who Sells Ticket to Different Ticket Broker, Who Sells to Individual

In this example, there are three separate transactions to consider: (1) the sale from Concert Provider B to Ticket Broker A for $30; (2) the sale from Ticket Broker A to Ticket Broker C for $50; and (3) the sale from Ticket Broker C to Individual D for $155 ($150 plus the $5 shipping and handling fee).

Transaction 1 - Sale from Concert Provider B to Ticket Broker A

Who is the retailer?
When does sale take place?
Where does sale take place?
What amount is taxable?
This sale is not a retail sale subject to tax. It is a sale for resale.

Transaction 2 - Sale from Ticket Broker A to Ticket Broker C

Who is the retailer?
When does sale take place?
Where does sale take place?
What amount is taxable?
This sale is not a retail sale subject to tax. It is a sale for resale.

Transaction 3 - Sale from Ticket Broker C to Individual D

Who is the retailer? Ticket Broker C
When does sale take place? At the time Ticket Broker C accepts the $155 payment from Individual D
Where does sale take place? At the location of the concert in LaCrosse
What amount is taxable? $155 (the $5 shipping and handling fee is part of the sales price of the ticket)

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Example 12 - Individual Calls Event Provider's Toll-Free Number and Places Order With Operator (Who May or May Not be in Wisconsin) for the Ticket

Who is the retailer? Concert Provider B *
When does sale take place? At the time Concert Provider B charges $55 to Individual A's credit card account
Where does sale take place? At the location of the concert in Madison
What amount is taxable? $55 (the $5 shipping and handling fee is part of the sales price of the ticket)

* Since Concert Provider B is engaged in business in Wisconsin and the concert takes place in Wisconsin, Concert Provider B is required to remit Wisconsin tax on the sale to Individual A, regardless of the location of the operator.

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Example 13 - Individual Logs Onto Event Provider's Website and Provides Credit Card Number Via the Internet

Who is the retailer? Baseball Team B
When does sale take place? At the time Baseball Team B charges $25 to Individual A's credit card account
Where does sale take place? At the location of the baseball game in Milwaukee
What amount is taxable? $25 (the $5 convenience fee is part of the sales price of the ticket)

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Example 14 - Event Takes Place Outside of Wisconsin

Since the game takes place outside of Wisconsin, neither of the sales of the ticket to the game is subject to Wisconsin sales or use tax.

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Example 15 - Sale of a "Package Deal" Which Includes Lodging, Ticket to Event, and Transportation

Since the game day package consists of (1) two or more distinct and identifiable products sold for one nonitemized price, and (2) more than 10 percent of the purchase price or selling price of the package is related to taxable products (admission and lodging), the transaction is a bundled transaction as defined in sec. 77.51(1f), Wis. Stats. (2009-10), and the entire selling price is subject to Wisconsin sales or use tax. Note: In this example, if Travel Agent B, through reasonable and verifiable standards using its books and records, can determine the portion of the sales price of the package that is attributable to nontaxable products (i.e., the transportation to and from the game), Travel Agent B has the option to collect and remit Wisconsin sales tax only on the portion of the sales price attributable to the taxable products (i.e., admission and lodging), as provided in sec. 77.52(20)(b), Wis. Stats. (2009-10).

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Example 16 - Sale of a "Package Deal" Which Includes Lodging, Meals, Ticket to Event, and Transportation

Since the game day package consists of (1) two or more distinct and identifiable products sold for one nonitemized price, (2) the package includes services and food or food ingredients, and (3) more than 10 percent of the purchase price or selling price of the package is related to taxable products (admission, lodging, and meals), the transaction is a bundled transaction as defined in sec. 77.51(1f), Wis. Stats., as created by 2009 Wis. Act 2, and the entire selling price is subject to Wisconsin sales or use tax. Note: In this example, since the transaction includes food or food ingredients, Travel Agent B does not have the option to collect and remit sales tax only on the portion of the sales price attributable to the taxable products, as provided in sec. 77.52(20)(b), Wis. Stats., as created by 2009 Wis. Act 2.

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Example 17 - Sale of Ticket Holder's Tickets Using Football Team B's Website - Football Team B is Retailer

In this example, there are two separate transactions to consider: (1) the sale from Football Team B to Customer A for $40 and (2) the sale from Football Team B to Individual X for $55.

Transaction 1 - Sale from Football Team B to Customer A

Who is the retailer? Football Team B
When does sale take place? At the time Football Team B accepts the $40 payment from Customer A
Where does sale take place? At the location of the football game in Eau Claire, Wisconsin
What amount is taxable? $40 *

Transaction 2 - Sale from Football Team B to Individual X

Who is the retailer? Football Team B
When does sale take place? At the time Football Team B accepts payment from Individual X
Where does sale take place? At the location of the football game in Eau Claire, Wisconsin
What amount is taxable? $55

* Since Football Team B previously sold the ticket to Customer A for $40 and assuming Football Team B properly reported the Wisconsin state and local sales taxes on that sale, Football Team B should refund the sales tax to Customer A based on the amount of the original ticket price refunded ($32), along with the $32. Football Team B may also claim a deduction on its sales and use tax return for the amount refunded ($32) to Customer A. If Football Team B does not also refund the sales tax on the amount that it pays Customer A, Football Team B may not claim that deduction ($32) on its sales and use tax return.

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Example 18 - Sale of Ticket Holder's Tickets Using Football Team B's Website - Football Team B is Retailer. Tickets Delivered Using Will Call.

In this example, there are two separate transactions to consider: (1) the sale from Football Team B to Customer A for $40 and (2) the sale from Football Team B to Individual X for $58.

Transaction 1 - Sale from Football Team B to Customer A

Who is the retailer? Football Team B
When does sale take place? At the time Football Team B accepts the $40 payment from Customer A
Where does sale take place? At the location of the football game in Eau Claire, Wisconsin
What amount is taxable? $40 *

Transaction 2 - Sale from Football Team B to Individual X

Who is the retailer? Football Team B
When does sale take place? At the time Football Team B accepts payment from Individual B
Where does sale take place? At the location of the football game in Eau Claire, Wisconsin
What amount is taxable? $58 ($40 + $8 + $7 + $3)

* Since Football Team B previously sold the ticket to Customer A for $40 and assuming Football Team B properly reported the Wisconsin state and local sales taxes on that sale, Football Team B should refund the sales tax to Customer A based on the amount of the original ticket price refunded ($32), along with the $32. Football Team B may claim a deduction on its sales and use tax return for the amount refunded ($32) to Customer A. If Football Team B does not refund the sales tax on the amount that it pays Customer A, Football Team B may not claim that deduction ($32) on its sales and use tax return.

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Example 19 - Sale of Ticket Holder's Tickets Using Ticket Broker's Website - Ticket Broker is Retailer, But Does Not Have Possession of Tickets

In this example, there are three separate transactions to consider: (1) the sale from Football Team C to Ticket Holder for $75; (2) the sale from Ticket Holder to Ticket Broker for $85; and (3) the sale from Ticket Broker to Individual D for $124.95.

Transaction 1 - Sale from Football Team C to Ticket Holder

Who is the retailer? Football Team C
When does sale take place? At the time Football Team C accepts the $75 payment from Ticket Holder
Where does sale take place? At the location of the football game in Green Bay, Wisconsin
What amount is taxable? $75

Transaction 2 - Sale from Ticket Holder to Ticket Broker

This sale is exempt from Wisconsin sales and use tax because Ticket Holder is not engaged in a trade or business requiring the holding of a seller's permit and the sale qualifies as an exempt occasional sale. Note: If Ticket Holder held or was required to hold a seller's permit, the sale to Ticket Broker would still not be taxable if Ticket Broker provides a fully completed exemption certificate to Ticket Holder claiming resale. Ticket Broker could provide an exemption certificate claiming resale since Ticket Broker is reselling the ticket to Individual D.

Transaction 3 - Sale from Ticket Broker to Individual D

Who is the retailer? Ticket Broker
When does sale take place? At the time Ticket Broker accepts payment from Individual D
Where does sale take place? At the location of the football game in Green Bay, Wisconsin
What amount is taxable? $124.95 *

* No credit for the Wisconsin state and local sales tax paid by Ticket Holder may be claimed by Ticket Broker and used to reduce the amount of Wisconsin state and local sales tax due on the selling price of the ticket from Ticket Broker to Individual D since Ticket Broker was not the person that paid the sales tax to Football Team C.

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Example 20 - Sale of Ticket Holder's Tickets Using Ticket Broker's Website - Ticket Broker is Retailer and Takes Possession of Tickets

In this example, there are three separate transactions to consider: (1) the sale from Football Team C to Ticket Holder for $75; (2) the sale from Ticket Holder to Ticket Broker for $85; and (3) the sale from Ticket Broker to Individual D for $124.95.

Transaction 1 - Sale from Football Team C to Ticket Holder

Who is the retailer? Football Team C
When does sale take place? At the time Football Team C accepts the $75 payment from Ticket Holder
Where does sale take place? At the location of the football game in Green Bay, Wisconsin
What amount is taxable? $75

Transaction 2 - Sale by Ticket Holder to Ticket Broker

This sale is exempt from Wisconsin sales and use tax because Ticket Holder is not engaged in a trade or business requiring the holding of a seller's permit and the sale qualifies as an exempt occasional sale. Note: If Ticket Holder held or was required to hold a seller's permit, the sale to Ticket Broker would still not be taxable if Ticket Broker provides a fully completed exemption certificate to Ticket Holder claiming resale. Ticket Broker could provide an exemption certificate claiming resale since Ticket Broker is reselling the ticket to Individual D.

Transaction 3 - Sale by Ticket Broker to Individual D

Who is the retailer? Ticket Broker
When does sale take place? At the time Ticket Broker accepts payment from Individual B
Where does sale take place? At the stadium in Green Bay, Wisconsin, where the football game will take place
What amount is taxable? $124.95 *

* No credit for the Wisconsin state and local sales tax paid by Ticket Holder may be claimed by Ticket Broker and used to reduce the amount of Wisconsin state and local sales tax due on the selling price of the ticket from Ticket Broker to Individual D since Ticket Broker was not the person that paid the sales tax to Football Team C.

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Page last updated July 7, 2011