Tickets or admissions to certain nonprofit activities are exempt from sales tax. Examples include:

• Community theater tickets
• Nonprofit museum tickets

Admissions tickets are not taxable if the organization meets the following criteria:

1. Their primary mission is to provide an opportunity for state residents to participate in the creation, performance, or appreciation of the arts.
2. They are one of the following:
   • A 501(c)(3) organization that received at least 5% of its revenue from voluntary contributions in its most recent fiscal year (or current fiscal year if the organization has not completed a full year).
   • A municipal board that promotes cultural and arts activities.
   • Part of a state college or university (including the University of Minnesota), or a private nonprofit college or university that owns the facility where the event is being held.

Examples

• A historical society operating a historically preserved home provides an annual art fair for an additional fee. Art fair admissions are taxable. However, museum admission charges are not taxable if separately stated on the customer bill or invoice.
• A nonprofit museum provides birthday parties for an additional fee. Party charges, such as for pizza and party favors, are taxable. However, museum admission charges are not taxable if separately stated on the customer bill or invoice.

Sales of memberships to qualifying “nonprofit organizations offering similar services” to the YMCA, YWCA, or JCC are exempt from sales tax. Nonprofit organizations offering similar services means:

• An exempt organization under section 501(c)(3) of the Internal Revenue Code
• Whose mission is to support youth and families through a variety of activities (including memberships allowing access to athletic facilities)
• Who provide free or reduced-price memberships to seniors or low-income persons or families

The exemption includes one-time initiation fees and periodic membership dues. Previously, only sales of memberships to the YMCA, YWCA, and JCC qualified for the exemption.

Separate charges for access to and use of the organization’s sports and athletic facilities are taxable. For example, swimming pool admissions, racquetball, and tennis court charges are taxable.

Tickets or admissions to performances or events held by a nonprofit agricultural heritage organization are exempt from sales tax.

Performances or events must meet all of the following requirements for the exemption:

• Be organized on at least 115 acres
• Educate the public about rural history and farms in Minnesota
• Be sponsored and conducted exclusively by volunteers, employees, and board members
• Be consistent with the nonprofit’s tax-exempt purpose