Are entry fees for organized singles-dating events ('Jewish Singles' meetups and 'Netparty' young-professional mixers) subject to New York sales tax as an admission charge to a place of amusement?

Plain-English summary

Jeffrey Strank organizes two kinds of events: "Jewish Singles" gatherings that let single individuals of the Jewish faith within a target age range meet each other, and "Netparty" events (marketed as business and social networking for young professionals) aimed at facilitating both dating and professional connections. He markets these through singles publications, targeted mailing lists, and person-to-person outreach at venues like restaurants, nightclubs, mansions, unfurnished rental spaces, and boats around New York City. Entry runs $20-25 for Jewish Singles events and $8-10 for Netparty events, with no additional fees to attendees. Strank never sells food or drink himself — that's handled separately by the venue, sometimes free to guests, sometimes sold by the venue directly — though a DJ or occasional live band typically provides entertainment. Strank structures his venue deals in different ways (sometimes guaranteeing the venue a beverage-revenue minimum, sometimes also paying a flat rental fee, sometimes taking no financial risk at all), but in every version, he simply keeps his entry fee.

New York taxes admission charges over ten cents to a "place of amusement," and separately taxes a specific, closed list of enumerated services. The Department focused on the actual primary function of Strank's events rather than their trappings (music, a nightclub venue, an entry fee that looks like a cover charge): the point of these gatherings is to provide a forum for singles to meet each other for dating, or for young professionals to network — not to provide entertainment or amusement as an end in itself. Because Strank isn't charging for entertainment or amusement, his fee doesn't count as a taxable admission charge under § 1105(f)(1). And because organizing/marketing a social-meeting service like this isn't one of the specific enumerated taxable services listed under § 1105(c), Strank's fee income isn't taxed under that provision either. Bottom line: Strank doesn't have to collect sales tax on what he charges attendees to come to these events.

What this means for you

Singles-event, matchmaking, and networking-mixer organizers

The tax exposure of an entry fee turns on the event's real primary function, not its superficial trappings — a DJ, a nightclub venue, and a per-head cover-style charge don't automatically make an event a taxable "amusement" if its actual purpose is facilitating personal or professional connections rather than providing entertainment.

Venue operators partnering with event promoters

This ruling addresses only the promoter's entry fee — it doesn't change how the venue's own separate charges for food, drink, or space rental are taxed; those follow their own ordinary rules regardless of how the promoter's fee is treated.

Accountants and tax professionals

This is a useful, narrow precedent for any "forum for meeting people" business model (singles events, professional mixers, similar social-connection services) — the key finding is that facilitating personal/professional connections is not itself an enumerated taxable service and doesn't automatically become a taxable "amusement" charge just because music or a nightlife-style venue is involved.

Common questions

Q: Does charging admission at a nightclub or party venue automatically make the fee a taxable "amusement" charge?
A: Not necessarily — the Department looks at the actual primary purpose of the event. Here, facilitating dating or professional networking (not entertainment) was the primary function, so the fee wasn't a taxable admission charge.

Q: Does it matter how the organizer structures payments to the venue (revenue guarantee, rental fee, or no financial arrangement at all)?
A: No — the opinion addresses only the tax treatment of the attendee-facing entry fee, which came out the same regardless of which of the three venue-payment structures Strank used.

Q: Is any fee charged for a "social" event automatically nontaxable?
A: No — this turns on the specific facts, including that the event's stated and actual purpose was facilitating meetings/dating/networking rather than providing entertainment, and that the service isn't among New York's specifically enumerated taxable services.

Citations and references

Statutes and regulations:

• Tax Law § 1105(c) (enumerated taxable services)
• Tax Law § 1105(f)(1) (admission charge tax)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2002.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a02_58s.pdf

Original ruling text

New York State Department of Taxation and Finance

Office of Tax Policy Analysis
Technical Services Division

TSB-A-02(58)S
Sales Tax
December 12, 2002

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S991019C

On October 19, 1999, the Department of Taxation and Finance received a Petition for
Advisory Opinion from Jeffrey M. Strank, 155 East 77th Street, New York, New York 10021.
The issue raised by Petitioner, Jeffrey M. Strank, is whether the fees to attend the events
organized and marketed by Petitioner and described below are subject to sales tax.
Petitioner submits the following facts as the basis for this Advisory Opinion.
Petitioner organizes and markets two types of events for singles. The first type of event is
denoted as a "Jewish Singles" event. Petitioner calls his second event a "Netparty" which is further
described as "Business and Social Networking Events For Young Professionals."
The primary function of Petitioner’s "Jewish Singles" events is to facilitate dating by
providing a forum for single individuals of the Jewish faith and within a specific age range to meet.
The primary function of Petitioner’s "Netparty" is to facilitate dating and/or business networking,
by providing a forum for single professionals within a specified age range to meet. The current
"Netparty" logo contains the tagline "It’s How To Meet."
Petitioner markets his "Jewish Singles" events in singles publications, in the "singles" listings
of newspapers and magazines, in Jewish newspapers and magazines, and in mass media outlets
whose demographics indicate that a large percentage or the subscriber base is single and in the
relevant age range. Additionally, Petitioner markets his events on a person-to-person basis in areas
where "Jewish Singles" are thought to congregate and at weekend retreats organized for singles.
Finally, Petitioner markets his events to his own mailing list of "Jewish Singles" within the relevant
age range that he has developed from previous events and through the various marketing strategies
previously described. Engagements and marriages stemming from Petitioner’s events are sometimes
announced to those on Petitioner’s mailing list.
Petitioner currently markets his "Netparty" to a mailing list of young professionals, within
the relevant age range, that he has similarly developed as well as on a person-to-person basis.
Petitioner further intends to market these events in many of the same "singles-oriented" publications
and forums described above as well as on the Internet.
Petitioner’s events are held in New York City locations that include restaurants, nightclubs,
mansions, non-furnished party venues available for rental, and boats. Those interested in attending
Petitioner’s events pay only on a per-event-basis; there are no additional fees. The fee for each of

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Sales Tax
December 12, 2002

Petitioner’s Jewish Singles events is generally $20 or $25. The fee for each of Petitioner’s
"Netparty" events is generally $8 or $10.
The only revenue Petitioner receives is his fee. Petitioner never receives revenue from the
sale of food or drink at his events. Beverages are available at Petitioner’s events; the restaurant,
nightclub, or other venue sells these separately. Food is generally not available at the events.
However, when food is available it is either sold separately by the restaurant, nightclub or other
venue, or provided by the restaurant, nightclub or other venue to Petitioner’s customers free of
charge. Entertainment (most often a disc jockey and occasionally a live band) is normally provided
at Petitioner’s events.
Petitioner has a few methods for providing a venue for his functions:
1)

Petitioner guarantees a certain gross beverage revenue to the venue operator and
agrees to make up any shortfall. Petitioner keeps his fee and may or may not be
required to pay the operator anything.

2)

Petitioner provides a gross revenue guarantee and also pays a rental fee to the
operator. Petitioner keeps his fee and may or may not be required to pay the shortfall
guarantee.

3)

Petitioner does not provide any guarantees, or pay a rental fee. The operator keeps
his revenue and Petitioner keeps his fee.

Applicable Law
Section 1105(c) of the Tax Law imposes sales tax upon the receipts from the sale of certain
enumerated services.
Section 1105(f)(1) of the Tax Law imposes sales tax upon “Any admission charge where
such admission charge is in excess of ten cents to or for the use of any place of amusement in the
state.”
Opinion
Petitioner organizes and markets two types of events for singles. The first type of event is
denoted as a "Jewish singles" event and the second is called a "Netparty." The primary function of
Petitioner’s events is not to provide entertainment or amusement, but to facilitate dating by providing
a forum for single individuals of the Jewish faith, and single professionals, within a specific age
range to meet. Petitioner, in effect, provides a social networking service. Section 1105(c) of the Tax
Law imposes sales tax only on receipts from the sale, except for resale, of certain enumerated
services. The service provided by Petitioner is not included among such enumerated taxable

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Sales Tax
December 12, 2002

services. Under the facts presented in this Advisory Opinion, and in view of the nature and function
of Petitioner’s events, petitioner is not charging individuals for entertainment or amusement.
Accordingly, the fees charged by Petitioner to individuals for these events are not admission charges
subject to sales tax under Section 1105(f)(1) of the Tax Law. Petitioner, therefore, is not required
to collect sales tax on the fees charged to attend the events described in this Advisory Opinion.

DATED: December 12, 2002

NOTE:

/s/
Jonathan Pessen
Tax Regulations Specialist IV
Technical Services Division

The opinions expressed in Advisory Opinions are
limited to the facts set forth therein.