Admissions

Admissions and entry fees to places of amusement, recreational areas, or athletic events are taxable unless an exemption applies. This includes areas owned and operated by state, county, and local governments with fees for yearly stickers, short-term passes, guest fees, and league fees.

Examples of places of amusement, recreational areas, and athletic events:

• Amusement parks
• Gymnasiums
• Roller blade parks
• Archery ranges
• Horse riding facilities
• Roller skating rinks
• Bocce ball courts
• Horseshoe courts
• Shooting ranges
• Campgrounds
• Hunting preserves
• Shuffleboard courts
• Community centers with
• Athletic or recreational facilities
• Ice skating rinks
• Skateboard rinks
• Concerts
• Miniature golf courses
• Ski areas
• Curling club rinks
• Parks
• State or county parks
• Dart board games
• Picnic grounds
• Swimming beaches
• Fairgrounds
• Playgrounds
• Trails
• Game farms
• Pools
• Volleyball courts
• Golf courses
• Resorts

Amusement Devices

Any electronic or mechanical machine or device that operates to provide entertainment or amusement.

Examples of amusement devices:

• Bowling alleys
• Jukeboxes
• Lifts on a ski slope
• Pinball machines
• Pool tables
• Shuffleboard tables
• Trapshooting facilities

The type of event determines if the admissions or entry fees are taxable. See below for examples.

Racetrack Admission

Admission to watch an event at a racetrack is taxable.

Back Gate or Pit Passes

Back gate or pit passes for the public to access to the pit area (a restricted area where the cars and crew are located) are taxable.

Entry Fees

Entry fees paid by drivers and crew to compete in a competitive event are taxable. This includes back gate fees or entry fees for special racing events.

Party Packages

Party packages that include admission to the place of amusement, food, decorations, and favors are taxable.

Sightseeing Tours

Sightseeing tours by boat, train, bus, or other form of transportation are not taxable.

Tradeshows or Other Selling Events

Charges for admissions to trade shows such as boat, car, camping, home improvement, and wedding shows are not taxable.

Entry Fees

Entry fees are payments to participate in a competitive event. Generally, entry fees are taxable because they are for use of a golf course, athletic field, or other athletic facility. Portions of the entry fee for prizes or trophies are taxable.

Entry fees that do not involve the use of athletic facilities or recreational areas are not taxable.

Examples

• An entry fee for a marathon that is run on city streets is not taxable. If there is no charge to spectators, the entry fees are not taxable.
• A marathon is run on a track, ski or bike trail, or other area where there is an admission charge or charge for use of the facility, it is taxable.

Dance Recitals

Dance recital entry fees are not taxable. However, entry fees to dance competitions are taxable if an admission fee is charged to spectators.

Youth Leagues

Fees for youth to join teams and play in competitive events are not taxable. Youth leagues are exempt as educational organizations.

Adult Leagues

Adult league fees are taxable. However, the portion of a league entry (or registration) fee that provides for referees or officials, trophies, uniforms, leagues sanction fees, or administrative expenses are not taxable if they are listed separately from the charge for the use of the athletic facility.

When the charges are not listed separately on the invoice, contract, or other written documentation, the entire charge is taxable.

Carnival Buttons

Sales of buttons that promote community events are not taxable when the buttons do not allow you admission to the events. This includes the Minneapolis Aquatennial, St. Paul Winter Carnival, and all other town or community events.

Lodging Rental

Lodging is the rental of a room or rooms for a temporary place to stay or live. Lodging facilities must charge sales tax on short-term lodging and certain related services if the room rental is:

• Less than 30 days
• 30 days or more, with no enforceable written lease agreement.
  • An enforceable written agreement must be entered into at the time of sale (day one or before) if the stay will be 30 days or more. The enforceable written agreement must include a termination clause, date, and signature.  

Examples of lodging facilities include (but are not limited to):

• Cabins
• Condos
• Lodges
• Motels
• Trailers

For more information, see Hotels and Other Lodging Establishments.

Site Rentals

Site rentals include:

• Campsites, including electric or water hook-up fees
• Sites to park campers, motor homes, trailers, or mobile homes

Site rentals are not taxable if the site rental is:

• More than 30 days
• There is an enforceable written lease agreement requiring the customer to give notice before ending the rental.

For more information, see Hotels and Other Lodging Establishments.

Recreational Equipment

Rental of recreational equipment is taxable.

Examples of taxable rentals include:

• Athletic fields or facilities rented by a team or league
• Bikes
• Boats
• Bucket of golf balls at a driving range
• Canoes
• Life jackets
• Motors
• Picnic tables
• Skates/rollerblades
• Skis
• Telescopes

Room Rentals

Room rentals are:

• Taxable admission charges only if the room rental includes admission to a place of amusement or recreational area.
• Nontaxable admission charges when the seller is only providing a room.

For example, if a guest rents a room at a golf course and the rental of the room includes use of the golf course, the room rental is a taxable admission charge.

Note: If the guests are only allowed use of the room and have to pay a separate charge for access to the golf course, the room rental charge is not taxable.

For more information, see Revenue Notice 17-08, Admissions – Taxation of Room Rentals.

Memberships to any club, community center, or other organization are taxable if both of the following are true:

• The club, association, or other organization makes sport and athletic facilities available to its members without regard for if a separate charge is assessed for use of the facilities.
• Use of the sports and athletic facility is not available to the public on the same basis as it is made available to members.

One-Time and Periodic Memberships

All nonrefundable one-time initiation fees and periodic membership dues required to become a member or to remain a member of a club are taxable.

Note: Periodic membership dues are payments due at least annually to retain the rights and privileges of club membership.

Mandatory annual charges that allow members to make club purchases at special membership rates are taxable as periodic membership dues. Charges or penalties assessed for not meeting minimum spending requirements are not taxable when they are separately stated.

For more information, see Revenue Notice 17-07, Golf, Country Club, and Athletic Club Memberships.

Social Memberships

Social memberships are taxable. A social membership in a club offers athletic facilities to its members but does not include use of the facilities.

Coin-operated means the device is both activated and operated by the purchaser upon providing the device with a payment or payment indicator. Examples include:

• Inserting a coin, paper currency, or token
• Swiping a card
• Entering a code
• Using an electronic payment method

Coin-Operated Entertainment and Amusement Devices

• Batting cages
• Cranes
• Foosball and pool tables
• Fortune telling machines
• Photo or video booths
• Rides
• Video games

Coin-Operated Utilities

Sales made through coin-operated showers, washers, and dryers are not taxable.

Purchasing Coin-Operated Devices

Purchases of certain coin-operated entertainment and amusement devices are exempt from sales tax.

This exemption applies to purchases by retailers who either:

• Sell admissions to places of amusement where coin-operated entertainment and amusement devices are provided
• Make available coin-operated entertainment devices and amusement devices

Vending machines, lottery devices, and gaming devices do not qualify for this exemption.

Note: This exemption does not include repair or replacement parts for these devices.

The privilege of admission to a place of amusement, recreation area, or athletic event is taxable. For a list of taxable admissions, see Defining Admissions and Amusement Devices.

There are two types of ticket sellers:

• Those who facilitate the sale
• Those who purchase tickets for resale

Ticket Sellers Who Facilitate the Sale

Ticket sellers who facilitate the sale sell admission tickets to an event or place of amusement on behalf of an event organizer. They are given tickets at no charge by the event organizer. Types of ticket seller facilitators include:

• Convenience stores
• Grocery stores
• Online sellers
• Other retailers

Ticket sellers who facilitate the sale do not purchase tickets for resale. They charge the customer for the tickets and may add additional service or delivery charges. They are responsible for collecting and remitting sales tax on the total sales price sold to the customer.

Ticket Sellers Who Purchase the Tickets for Resale

A ticket reseller is in the business of purchasing admission tickets for resale and must be registered to collect sales tax. See Minnesota Statute 297A.68, subd. 43.

Ticket resellers must collect and remit sales tax and all applicable local taxes on the total sales price of the admission ticket.

Event Organizers

When event organizers directly sell tickets to and collect payments from the purchaser, they are required to collect and remit sales tax on the total sales price for the ticket, including any additional charges and fees.

When an event organizer sells tickets through a third party and the third party collects the payment, including additional charges, the third-party ticket seller is responsible for collecting and remitting sales tax. However, if the event organizer collects the payment directly from the purchaser, they are responsible for collecting the sales tax.

For more information, see Admissions and Entry Fees.

Sales of product are taxable unless an exemption applies.

Examples of product sales include:

Equipment Sales

If you sell or lease equipment or other items that you used in your business, the sale may be taxable. For more information, see Isolated and Occasional Sales.

Snack Bars

Any food prepared by the seller or sold with eating utensils provided by the seller is taxable. For example, sales at a snack bar. For more information, see Prepared Food.

Vending Machine Sales

The only taxable food sold through vending machines, snack boxes, or honor boxes is prepared food, soft drinks, candy, and dietary supplements. Previously, all food sold through a vending machine was taxable.

For more information, see Vending Machines and Other Coin-Operated Devices.

Gift Certificates and Card Sales

Gift certificates and gift cards are not taxable when sold. When a gift certificate or gift card is redeemed, charge sales tax on any taxable portion of the purchase. Apply the gift certificate or card as a cash payment.

Sourcing Admissions, Memberships, and Fees

Generally, sales of tickets for admission to taxable events and sales of taxable memberships to clubs are sourced to the location where the event or facility is located.

Sometimes the tickets or memberships allow use at various locations. For example, a membership to a health club that allows customers to use a number of facilities located in or outside of the state. These sales are sourced to the location where the membership is sold, regardless of where it is first used or primarily used.

Discounts and Coupons

Discounts and coupons allow customers to buy prepared food and drinks at a reduced price.

Examples include:

• Buy one admission, get one free
• 50% with the purchase of a second item
• Free drink with the purchase of admission

The price you charge tax on depends on if you are reimbursed for the discount or coupon being redeemed

Daily Deal Website Vouchers and Coupons

Generally, customers buy discount vouchers and group coupons online and then bring them to the retailer for the discount. The purchase of a discount is not taxable. If the item (or service) is taxable, charge sales tax when the voucher or coupon is redeemed.

 Note: Your records must support the tax calculation.

For more information, see Coupons, Discounts, Rewards, Rebates, and Other Forms of Payment.

Local Sales Tax

Generally, sales of tickets for admission to taxable events and sales of taxable memberships to clubs are sourced to the location where the event or facility is located.

Sometimes the tickets or memberships allow use at various locations. For example, a membership to a health club that allows customers to use a number of facilities located in or outside of the state. These sales are sourced to the location where the membership is sold, regardless of where it is first used or primarily used.

Certain services and sales are not taxable.

Lessons

Lesson fees are not taxable, even if the lessons include the taxable use of an athletic facility. However, if the charge for the use of the facility is a significant part of the total cost of the lessons, the entire charge is taxable.

If the charge for the athletic facility is listed separately, that portion is taxable.

Nontaxable Sales

Nontaxable sales include:

• Boat launching and slip rental fees
• Bowling shoes
• Caps, t-shirts, and other clothing
• Cigarettes
• Fishing and hunting licenses
• Ice
• Over-the-counter drugs

Food

The following food items are not taxable when sold, unless sold in a bar, restaurant, or other eating establishment or prepared or heated by the seller:

• Bottled water (unsweetened)
• Food products such as milk, bread, canned goods, meat, and cereal
• Prepackaged chips, nuts, beef jerky, pies, and cupcakes
• Prepackaged sandwiches, burritos, pizza, etc. sold directly from the cooler

Self-Service Coin-Operated Utilities

Sales made through coin-operated showers, washers, and dryers are not taxable.

Storage Fees

Storage fees for storing golf carts, boats, campers, and icehouses are not taxable.

The following sales exemptions apply to sales of admissions and memberships.

YMCA, YWCA, JCC, and Similar Organizations

Sales of memberships by qualifying organizations similar to the YMCA, YWCA, and Jewish Community Centers (JCCs) of Greater Minneapolis and St. Paul are exempt from sales tax.

This includes one-time initiation fees and periodic membership dues. Previously, only sales of memberships to the YMCA, YWCA, and JCC qualified for the exemption. For more information about qualifying organizations, see Nonprofit Organizations.

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

Nonprofit Purchases of Admissions and Memberships

Qualifying nonprofit organizations may purchase admissions and certain tangible goods exempt from sales tax. To claim this exemption, the nonprofit organizations must provide a completed Form ST3, Certificate of Exemption.

Note: This exemption does not apply to meals and lodging.

School Tickets or Admissions

Tickets or admissions to regular season school games, events, concerts, plays, and activities are exempt from sales tax. This exemption applies to public, nonprofit, and for-profit school with grades pre-kindergarten through grade 12, including vocational and career schools.

Admissions to tournaments, post-season games, and other non-regular season games, events, and activities are taxable.

Admissions charged to swimming pools, ice rinks, tennis courts, and other athletic facilities are taxable.

Minnesota State High School League

Admissions and tickets to games, events, and activities sponsored by the Minnesota State High School League are exempt from sales tax. This exemption ends June 30, 2027.

Golf Tournaments

Tickets or admissions to a golf tournament in Minnesota are exempt from sales tax when the beneficiary of the tournament’s net proceeds is a tax-exempt organization under Internal Revenue Code, section 501 (c)(3).

Camp Fees

Camp fees are amounts paid to attend a camp. Charges include meals, lodging, and instruction or training. Camp fees are exempt from sales tax when:

• the camp or facility is owned and operated by an exempt organization under Internal Revenue Code, section 501 (c)(3)
• the fees are for one of the following:
  • Services primarily for children, adults accompanying children, or persons with disabilities
  • Educational and religious activities. Examples include:
    • Adult religious camps
    • Culture camps
    • Language camps
    • Marriage retreats
    • Music camps

Educational or religious activities do not include:

• Family or class reunions
• Quilting bees
• Wedding receptions

County Agricultural Society Sales Exemption

The following sales by a county agricultural society are exempt:

• Admissions to and parking at the county fairgrounds
• Admissions to separately ticketed events run by the county agricultural society
• Concessions and other sales made by employees or volunteers of the county agricultural society on the county fairgrounds

Starting May 25, 2023, the exemption of sales by county agricultural societies during regularly scheduled county fairs is expanded to include pre-sales. This exemption does not apply to sales or events held at a time other than at the time of the regularly scheduled county fair or for events not held on the county fairgrounds.

A county agricultural society must annually determine the amount of sales tax savings from the exempt sales and must use the amount equal to the sales tax savings to maintain, improve, or expand society-owned buildings and facilities on the fairgrounds.

Season Tickets to Collegiate Events

The sale of a right to purchase the privilege of admission to a college or university athletic event in a preferred viewing location for the season, is exempt from sales tax when the following apply:

• The amount paid for the right to purchase is used entirely to support student scholarships, wellness, and academic costs
• The admission price is equal to or greater than the highest priced general admission ticket for the closest seat not in the preferred viewing location

Note: The charge for admission and any parking fees are taxable.

Starting July 1, 2022, you no longer need to separately state the consideration paid for the right to purchase the privilege of admission in a preferred viewing location from the admission price.

Professional Sports Teams Amenities Exemption

Starting July 1, 2022, amenities sold by a professional sports team that are included in the sales price of the privilege of admission to athletic events and places of amusement is exempt. Amenities include but are not limited to food, beverages, parking services, and promotional items. This exemption only applies to sports teams competing in:

• Major League Baseball
• Major League Soccer
• National Basketball Association
• Women’s National Basketball Association
• National Football League
• National Hockey League

Admissions or membership fees to game farms, shooting preserves, and hunting clubs are taxable.

Game Release Charges

Game release charges are taxable. Game release charges include (but are not limited to):

• A certain number of birds or animals available to hunt
• Birds or animals released prior to hunting
• Exceeding the limit of birds or animals allowed in the admission or membership

When the birds are intended for human consumption, up to 75% of the amount billed for game release charges is exempt from sales tax. The exemption only applies if the charge for the sale of food is listed separately from the game release charges on the customer’s invoice.

Bird or Animal Sales

Retail sales of slaughtered, dressed, and wrapped birds or animals by game farms, shooting preserves, or hunting clubs are not taxable.

Game Farm Purchases

Game farms, shooting preserves, and hunting clubs must pay sales tax on items they use or consume in their business, except for:

• Live birds or animals
• Feeds, medicines, and drugs
• Other consumable materials and supplies used in raising and maintaining live birds or animals

Admissions to ski areas are taxable.

Cross-country ski passes to use public trails are not taxable.

Ski Area Consumables

Items used or consumed primarily for tramways at ski areas, snowmaking, snow grooming at ski hills, ski slopes, or ski trails are exempt. This includes:

• Machinery and equipment
• Fuel, electricity, and water additives to produce and maintain machine-made snow
• Repair and replacement parts for qualifying equipment

Note: This exemption applies to purchases by the owner and contractors for use at ski areas.

To claim exemption, give the seller a completed Form ST3, Certificate of Exemption.

Items you use to operate your business are taxable unless an exemption applies. Several services are also taxable. If you do not pay sales tax on a taxable purchase, then use tax is due.

Tokens, Tickets, and Prizes

Prizes given away to winners of games of chance, amusement, or skill are taxable to operators of the machines, unless the item itself is exempt from sales tax (clothing). Tokens used to operate the machines or tickets used to redeem prizes are also taxable to the operator.

Carnival, Festival, and Fair Exemption

Prizes for games of skill or chance conducted at events such as carnivals, festivals, and fairs lasting less than six days are exempt from sales tax. Give your supplier a completed Form ST3, Certificate of Exemption. Use the Other exemption and write in prizes.

Vending Machine Purchases

When you buy or lease a new or used vending machine or other coin-operated device for use in Minnesota, you must either pay sales tax or accrue use tax on the purchase price or lease payments.

For more information, see Vending Machines and Other Coin-Operated Devices.

Use Tax

The following purchases are not taxable for those in the admissions and amusement devices industry.

Resale Items

Items that are purchased for resale, lease, or rental to the customer may be purchased exempt from sales tax. Give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

Examples include:

• Pop
• Candy
• Insect repellant
• Other items sold over the counter
• Rental equipment (boats, motors, golf, ski, volleyball equipment)

Coin-Operated and Amusement Devices Exemption

Certain coin-operated entertainment and amusement devices may be purchased exempt from sales tax. Examples include:

• Batting cages
• Cranes
• Foosball and pool tables
• Fortune telling machines
• Jukeboxes
• Photo or video booths
• Video and pinball games
• Rides

Clothing

General clothing you purchase for use in your business is not taxable. Examples include:

• Aprons
• Gloves
• Oven mitts
• Uniforms

For more information, see Clothing.

Jukebox Music

Purchases of music by jukebox operators who charge customers for use of the jukebox are exempt from sales tax as long as the music is only used for the jukebox.

The music may be either a digital audio work or in tangible form such as a record or compact disc.

Towel Service Supplies

Towels supplied to customers as part of a linen supply service can be purchased exempt for resale. Give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

If you launder your own towels, you may buy the water, soap, bleach, and other materials used to launder the towels exempt from sales tax. Specify the Other exemption and write in materials to provide taxable services.

For more information, see Laundry and Cleaning Services.

The legal references and resources related to the admissions and amusement devices industry are listed.

Minnesota Statutes

• Minnesota Statute 297A.61, Definitions
  • subd. 3(g)(1), Admissions
  • subd. 3(g)(2), Lodging
  • subd. 3(g)(4), Memberships
  • subd. 4(h)&(j), Retail sale
• Minnesota Statute 297A.668, Sourcing of Sale
  • subd. 2, Sourcing rules
• Minnesota Statute 297A.67 General Exemptions
  • subd. 19, Cross-country ski passes
  • subd. 35, Suite licenses
  • subd. 38, Season ticket purchasing rights to collegiate events
• Minnesota Statute 297A.68, Business exemptions
  • subd. 3a, Coin-operated entertainment and amusement devices
  • subd. 29, Prizes
  • subd. 46, Amenities included with the privilege of admission
• Minnesota Statute 297A.70, Exemptions for governments and nonprofit groups
  • subd. 10, Nonprofit tickets or admissions
  • subd. 11, School tickets or admissions
  • subd. 12, YMCA, YWCA, JCC memberships
  • subd. 13, Fundraising sales by or for nonprofit groups
  • subd. 16, Camp fees
  • subd. 21, County agricultural society sales at county fairs

Minnesota Rules

• 8130.0900, Entertainment

Revenue Notices

• 97-12, Leased Seasonal Sites in Recreational Areas
• 02-13, Game Farms, Shooting Preserves and Hunting Clubs – Game Release Charges
• 02-20, Technical Corrections of Prior Revenue Notices
• 04-03, Camp Fees
• 15-01, Sales and Use Tax - Admissions - Season or Installment Plan Tickets
• 16-02, Admissions - Features of Admission
• 17-07, Golf, Country Club, and Athletic Club Memberships
• 17-08, Admissions – Taxation of Room Rentals
• 97-12, Leased Seasonal Sites in Recreational Areas
• 02-13, Game Farms, Shooting Preserves and Hunting Clubs – Game Release Charges
• 02-20, Technical Corrections of Prior Revenue Notices
• 04-03, Camp Fees
• 15-01, Sales and Use Tax - Admissions - Season or Installment Plan Tickets
• 16-02, Admissions - Features of Admission
• 17-07, Golf, Country Club, and Athletic Club Memberships
• 17-08, Admissions – Taxation of Room Rentals

Fact Sheets

• Candy
• Drugs, Grooming and Hygiene Products
• Food and Food Ingredients
• Soft Drinks and Other Beverages
• Prepared Food

Guides

• Eating Establishments
• Hotels and Other Lodging Establishments
• Nonprofit Organizations
• Sales and Use Tax Business Guide
• Vending Machines and Other Coin-Operated Devices