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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 and generally return any unsold tickets to the organizer. Ticket seller facilitators include:
Ticket seller facilitators 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 including any additional charges.
Ticket resellers must collect and remit state sales tax and all applicable local taxes on the total sales price of the admission ticket.
Ticket resellers may purchase admission tickets exempt for resale by providing their vendor with a completed Form ST3, Certificate of Exemption. If the ticket reseller did not purchase tickets exempt for resale, the ticket reseller can either:
If a reseller purchased the ticket from a seller that is not in the business of selling tickets, they cannot use a resale exemption certificate or file a purchaser refund claim. However, they may take the credit for the tax paid on the original ticket price when charging their customer.
The ticket reseller must keep records to document the price and tax paid when they purchase a ticket and when they resell a ticket. The credit allowed for sales tax paid can never be more than the tax paid on the original ticket or the amount of tax due on the total ticket sale.
Example: A venue will not accept an exemption certificate from a ticket reseller and therefore sells their tickets each with a charge of $5 sales tax. The ticket reseller then sells the tickets to their customers for a higher amount that would result in $7 sales tax on each ticket. The reseller either:
1. Charges and remits the entire $7 on the tax return.
The reseller would charge and remit the total $7 collected from the customer. They would then file Form ST11 directly with the department to recover the $5 sales tax they paid to the venue.
2. Charges and remits $2 on the tax return
When charging the customer, the retailer would credit the $5 they had already paid on their purchase of the original ticket and only charge $2 to the customer. When filing the return, they would report only the $2. They must keep records of the original tax paid, tax charged to their customer and the credit taken.
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.