Is the per-event fee a singles-events organizer charges attendees a taxable admission charge under New York sales tax law?

Plain-English summary

A sole proprietor who organizes and markets singles events -- dinners and mixers held at restaurants and catering halls in Queens, Nassau, and Suffolk Counties -- asked the Department whether the $15-$17 per-event fee he charges attendees is subject to New York sales tax. He markets the events through singles listings, mailings, and a website to bring together single adults within a specific age range; the restaurant or venue separately sells beverages, sometimes provides a complimentary buffet, and a DJ or occasional live entertainer performs.

The Department found the primary function of these events is not entertainment or amusement, but facilitating dating -- in effect, a "social networking service." Because that service isn't one of the enumerated services taxed under Tax Law § 1105(c), and because the fee isn't really an admission charge to a place of amusement under § 1105(f)(1), the organizer doesn't have to collect sales tax on it.

The opinion draws a careful line: if the organizer's events were found to be primarily about entertainment or amusement rather than matchmaking, the same fee would flip into a taxable admission charge (or a taxable restaurant cover charge, if paid to the venue instead). The Department leaned on a nearly identical 2002 precedent involving another singles-event organizer to reach the same conclusion here.

What this means for you

Singles-event, matchmaking, and social-networking businesses

If the true function of your paid events is to connect people (dating, networking, matchmaking) rather than to provide entertainment, your admission fee isn't automatically taxable as an amusement charge -- but what the event actually does matters more than what you call it. Keep records showing the events' real purpose (marketing materials, attendee demographics, format) in case the Department or an auditor questions the exemption.

Restaurants, catering halls, and other event venues

This ruling is about the organizer's separate fee to attendees, not about what the venue itself charges. A restaurant's or caterer's own receipts from food, drink, and any cover or minimum charge made to patrons remain taxable under § 1105(d)(i) regardless of how the organizer's own admission fee is treated.

Accountants and tax professionals

Watch the facts-and-circumstances line here: whether an event is a taxable "place of amusement" turns on its primary purpose, not its format (music, a DJ, or a restaurant setting can all still be present). This is a narrow ruling limited to matchmaking-style events; it wouldn't extend to an event whose real draw is the entertainment itself.

Common questions

Q: Do I have to collect sales tax on fees for a singles/dating event I organize?
A: If the event's primary function is to facilitate dating rather than provide entertainment or amusement, no -- the fee isn't a taxable admission charge under this ruling. But your facts must genuinely support that characterization.

Q: What if the event is really more about entertainment (a DJ, a show) than matchmaking?
A: Then the fee would likely be a taxable admission charge to a place of amusement, or a taxable cover/minimum charge if paid to the restaurant or caterer itself.

Q: Does this cover what the restaurant or venue charges for food and drinks?
A: No. Those receipts remain separately taxable under Tax Law § 1105(d)(i) regardless of how the organizer's own fee is treated.

Q: Can another events organizer rely on this ruling?
A: No. It binds the Department only for the petitioner and the facts described here; another organizer's events would need their own analysis of their true primary purpose.

Citations and references

Statutes and guidance:

• Tax Law § 1105(c) (tax on enumerated services)
• Tax Law § 1105(d)(i) (restaurant/caterer receipts, including cover and minimum charges)
• Tax Law § 1105(f)(1) (admission charges to a place of amusement)
• TSB-A-02(58)S (Jeffrey M. Strank, Dec. 12, 2002)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2005.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a05_33s.pdf

Original ruling text

New York State Department of Taxation and Finance

Office of Tax Policy Analysis
Technical Services Division

TSB-A-05(33)S
Sales Tax
September 27, 2005

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S030912B

On September 12, 2003, the Department of Taxation and Finance received a Petition for
Advisory Opinion from Lawrence Lynn, 102-30 66th Road, Apt 8D, Forest Hills, New York,
11375. Petitioner provided additional information pertaining to the Petition on January 5, 2004.
The issue raised by Petitioner is whether the fees charged by Petitioner for the events
described below are subject to New York sales and use tax.
Petitioner submitted the following facts as the basis for this Advisory Opinion.
Petitioner organizes and markets events for singles. The primary function of Petitioner’s
events is to facilitate dating by providing a forum for single individuals within a specific age
range to meet. Petitioner markets the events in the “singles” listing of newspapers. In addition,
Petitioner markets the events to his own mailing list of singles within the relevant age range that
he has developed from previous events. This is facilitated through the use of postcards,
telephone, e-mail and Web page. Engagements and marriages stemming from Petitioner’s events
are sometimes announced to those on Petitioner’s mailing list.
Petitioner’s events are held in Queens, Nassau and Suffolk County locations that include
restaurants and catering facilities. Those interested in attending Petitioner’s events pay on a per
event basis; there are no additional fees. The fee for each of Petitioner’s events is generally $15
or $17. The only revenue Petitioner receives is the fee. Beverages are available at Petitioner’s
events. The restaurant or catering hall sells these separately. A buffet of food may be made
available by the restaurant or catering hall to Petitioner’s customers at no additional charge to the
customers. Entertainment (most often a disc jockey and occasionally a live entertainer) is
normally provided at Petitioner’s events.
Petitioner has the following methods for providing a venue for these functions:
$

Petitioner guarantees certain gross beverage revenue to the venue operator and
agrees to make up any shortfall.

2

$

TSB-A-05(33)S
Sales Tax
September 27, 2005

Petitioner pays a rental fee to the operator in addition to providing a gross revenue
guarantee and agreeing to make up any shortfall.

Applicable law and regulations
Section 1105(c) of the Tax Law imposes sales tax upon the receipts from the sale of
certain enumerated services.

Section 1105(d)(i) of the Tax Law imposes sales tax upon “The receipts from every sale
of beer, wine or other alcoholic beverages or any other drink of any nature, or from every sale of
food and drink of any nature or of food alone, when sold in or by restaurants, taverns or other
establishments in this state, or by caterers, including in the amount of such receipts any cover,
minimum, entertainment or other charge made to patrons or customers.”
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
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 within a specific age range to
meet. Petitioner, in effect, provides a social networking service. If Petitioner is not providing a
social networking service, its charges for admission to a bar, restaurant or similar facility are
subject to tax under section 1105(d)(i) of the Tax Law as a “cover, minimum, entertainment or
other charge made to patrons or customers.” Similarly, if the charge is primarily for admission
to a place of amusement, the admission charge is subject to tax under section 1105(f)(1) of the
Tax Law.
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 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. See Jeffrey M. Strank, Adv Op Comm T&F,
December 12, 2002, TSB-A-02(58)S.

TSB-A-05(33)S
Sales Tax
September 27, 2005

3

Accordingly, the fees charged by Petitioner to individuals for these events are not
admission charges subject to sales tax. Petitioner, therefore, is not required to collect sales tax
on the fees charged to attend the events described in this Advisory Opinion.

DATED: September 27, 2005

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.