Which entertainment counted for Connecticut cabaret tax under Ruling 89-36?

Plain-English summary

Cabaret tax generally applied when a cabaret charged for admission or refreshments and furnished music, dancing privileges, or other entertainment. The ruling defined a cabaret as a place where alcoholic beverages were served or sold.

The statutory definition excluded a place offering mechanical music alone or the music of a single performer alone.

The Department treated comedians, magicians, hypnotists, and disc jockeys as "other entertainment." It reasoned that a disc jockey was not merely mechanical music and was not a single musician performing alone.

What this means for you

Under the historical ruling, the form of entertainment mattered. Mechanical playback alone and one performer alone were excluded, while a disc jockey and the listed nonmusical performers counted as entertainment.

The ruling addressed a 1989 tax regime and does not establish current venue-tax law.

Common questions

What made a place a cabaret in the ruling? It served or sold alcoholic beverages.

What charges generally triggered the tax? Charges for admissions or refreshments at a cabaret furnishing music, dancing privileges, or other entertainment.

Did a disc jockey count as entertainment? Yes.

What was excluded? Mechanical music alone or the music of a single performer alone.

Citations and references

• Conn. Gen. Stat. §§ 12-540(4) and 12-542, as cited in the ruling.

Source

• Landing page: Connecticut DRS Rulings
• Ruling: Ruling 89-36

Original ruling text

Ruling 89-36, Cabaret Tax

Ruling 89-36

Cabaret Tax

Generally, the incidence of the cabaret tax is charging for admissions or refreshment at a cabaret furnishing music, dancing privileges or any other entertainment. A cabaret is a place where alcoholic beverages are served or sold.

The definition of "cabaret or other similar place"; Conn. Gen. Stat. §12-540(4); excludes places where mechanical music alone or the music of a single performer alone is afforded to patrons.

Comedians, magicians and hypnotists, in the Department's view, constitute "other entertainment"; Conn. Gen. Stat. §§ 12-540(4) and 12-542.

The Department also views disc jockeys as constituting "other entertainment." Where a disc jockey is hired, mechanical music alone is not being afforded to patrons. Disc jockeys are not musicians, so the music of a single performer alone is not being afforded to patrons.

LEGAL DIVISION
August 1, 1989