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.
