A taxpayer’s ticket sales for a charity softball game are subject to New York sales tax. The taxpayer is a minor league baseball team that owns a stadium. In its stadium, the taxpayer holds baseball games, as well as other outside events. The taxpayer rented its facilities to a nonprofit organization to hold a charity softball game. The taxpayer collected the selling price, including sales tax on the ticket sales. While the nonprofit organization that rented the facilities is registered as an exempt organization for sales tax purposes, and generally would not be required to collect sales tax on admission charges, the admissions charges to the charity softball game are subject to sales tax because the game was played to benefit the nonprofit organization and to further its goals, and the proceeds were not for the benefit of an elementary or secondary school. Even though the taxpayer was not the organizer of the charity softball game, the taxpayer sold the tickets and collected the admission charges for that game. Accordingly, the taxpayer is the recipient of an amusement charge that is subject to sales tax. Thus, the taxpayer is a “person required to collect sales tax,” and was required to collect tax on the tickets sold for the charity game and remit the tax to the Department of Taxation and Finance. In addition, even if the admissions to the charity event had been determined to be exempt, because the taxpayer collected sales tax on the admission charges, it was required to remit the tax collected to the department.
TSB-A-17(8)S, New York Commissioner of Taxation and Finance, June 21, 2017, ¶409-074