November 29, 2011
TAX ON CHILDREN'S BIRTHDAY PARTIES
By: Judith Lohman, Assistant Director
You asked if there is a state tax on children's birthday parties held at a children's play place, such as Jump Zone.
TAX ON CHILDREN'S PARTIES
If the party is held in a play place that charges admission, the admission charge is likely subject to the state admission tax. This is the only state tax that would apply specifically because a party is held at a play place or other entertainment or amusement venue. Although state sales tax would apply to meals or sodas purchased at such a party, sales tax applies to meals or sodas purchased at any type of location.
Connecticut Admission Tax
Connecticut imposes a 10% tax on admission charges to any "place of amusement, entertainment or recreation." A reduced rate of 6% applies to movie tickets over $5.
The tax applies to amounts paid for tickets; licenses; skybox, luxury suite, or club seat rentals; and any other admission charges, including any charges for the right to buy seats. It covers theaters; lecture and concert halls; amusement parks and fairgrounds; dance halls; sporting facilities, such ball parks, race tracks, tennis courts, golf and miniature golf courses, skating rinks, beaches, swimming pools, and gyms; stadiums and amphitheaters; convention centers; auto, boat, camping, home, dog, and antique shows; and other similar venues and events (CGS § 12-540).
The following charges and events are exempt from the admission tax:
● Admission charges under $1.
● Movie tickets costing $5 or less.
● Daily admission charges that allow patrons to participate in a sport or athletic activity.
● Events from which all proceeds go exclusively to a nonprofit organization, provided that organization actively engages in, assumes the financial risk of, presenting the event.
● Other events that the revenue services commissioner considers are held primarily to raise money for a nonprofit organization, provided the amount raised is greater than the admission tax that would otherwise be due.
● Events paid for by senior centers providing recreational, cultural, and other leisure activities.
● Live performances at Gateway's Candlewood Playhouse, Ocean Beach Park, or any other nonprofit theater.
● Carnival and amusement park rides.
● Cabarets serving alcohol and providing music, dancing, or other entertainment that, before July 1, 1999, would have been subject to the repealed cabaret tax.
● Interscholastic athletic events held at Rentschler Field in East Hartford. (All other events held at Rentschler Field are subject to the tax.)
(CGS § 12-541, as amended by PA 11-6)