Is the admission charge to watch a roller derby exhibition subject to New York sales tax?

Plain-English summary

Rollermania Inc. asked whether the charge for admission to a roller derby exhibition is subject to sales tax. A roller derby is a contest between two roller-skating teams on a banked oval track, watched by an audience.

The Department held the admission charge is taxable.

• Admissions to places of amusement are taxable. Under § 1105(f)(1), any admission charge over ten cents "to or for the use of any place of amusement" is subject to sales tax.
• A sporting arena is a place of amusement. The regulations define a "place of amusement" to include, without limitation, a golf course, athletic field, sporting arena, gymnasium, bowling alley, and other places for athletic exhibits (20 NYCRR 527.10(b)(3)). The roller derby is held in a sporting arena, so it qualifies.
• The race-track / boxing / wrestling exception does not apply. That exception covers charges to race tracks and boxing, sparring, or wrestling matches that are taxed under another law of the state. Roller derby admissions are not taxed under any other law, so the exception does not reach them.
• The participatory-sport exception does not apply. § 1105(f)(1) also excepts charges to a patron for admission to facilities for sporting activities in which the patron is a participant (like bowling alleys and swimming pools). Roller derby spectators do not actively participate in the exhibition — they watch — so this exception does not apply.

What this means for you

Admission to watch a sporting event in New York is generally a taxable amusement charge. If you charge more than ten cents to get into a sporting arena or similar venue to watch an exhibition, that charge is presumptively taxable under § 1105(f)(1).

The participatory exception is about the patron doing the activity, not watching it. Charges to use a bowling alley or swimming pool are excepted because the patron participates. Buying a ticket to watch skaters, boxers-style entertainers, or teams compete is a spectator admission, which is taxable.

Some spectator sports are carved out — but only because another tax law already covers them. Race tracks and boxing/sparring/wrestling matches are excepted from sales tax because a different state law taxes them. A sport not covered by such a separate law (like roller derby) stays within the sales-tax admission charge.

Common questions

Q: We run roller derby exhibitions and sell tickets. Is the admission taxable?
A: Yes. The Department held that admission to a roller derby exhibition in a sporting arena is a taxable admission to a place of amusement under § 1105(f)(1).

Q: Boxing and wrestling admissions aren't hit with sales tax — why is roller derby different?
A: Because boxing, sparring, and wrestling matches are taxed under another state law and are specifically excepted. Roller derby is not taxed under any other law, so it stays subject to the sales tax on admissions.

Q: Does the participatory-sports exception (like bowling or swimming) help?
A: No. That exception applies when the patron is a participant. Roller derby patrons are spectators, not participants, so the exception does not apply.

Citations and references

Statutes and regulations:

• Tax Law § 1105(f)(1) — taxes admission charges over ten cents to a place of amusement, with exceptions for separately taxed race tracks/boxing/sparring/wrestling and for participatory sporting facilities
• 20 NYCRR 527.10(b)(3) — defines "place of amusement" to include a sporting arena and other places for athletic exhibits

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1987.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a87_8s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-87(8)S
Sales Tax
January 27, 1987

STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. S861223A

On December 23, 1986, a Petition for Advisory Opinion was received from Rollermania Inc.,
140 Main Street, Buffalo, New York 14203.
The issue raised is whether the charge for admission to a roller derby exhibition is subject
to sales tax.
It is noted that a "roller derby" is "a contest between two roller skating teams on a banked
oval track in which each team attempts to maneuver a skater into position to score points by circling
the track and passing members of the opposing team within a given time period." Webster's New
Collegiate Dictionary, (1973).
Section 1105(f) of the Tax Law imposes sales tax upon:
(1) 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,
except charges for admission to race tracks, boxing, sparring or
wrestling matches or exhibitions which charges are taxed under any
other law of this state,...and except charges to a patron for admission
to, or use of, facilities for sporting activities in which such patron is
to be a participant, such as bowling alleys and swimming pools.
Section 527.10(b)(3) of The Sales and Use Tax Regulations defines a place of amusement
as:
Any place where facilities for entertainment, amusement or sports
are provided. Such places include without limitation...golf course,
athletic field, sporting arena, gymnasium, bowling alley, shooting
gallery...or other places for athletic exhibits.... 20 NYCRR 527.10
The roller derby exhibition is held in a sporting arena, which qualifies as a place of
amusement pursuant to the sales and use tax regulations. Charges for admission to roller derby
exhibitions do not qualify as "charges for admission to race tracks, boxing, sparring or wrestling
matches or exhibitions which charges are taxed under any other law of this state." Furthermore,
charges for admission to roller derby exhibitions do not qualify as charges to a patron for admission
to a participatory sporting activity inasmuch as the patrons do not actively participate in roller derby
exhibitions.

RODERICK G. W. CHU, COMMISSIONER
GABRIEL B. DiCERBO, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR
TP-8 (3/83)

-2­
TSB-A-87(8)S
Sales Tax
January 27, 1987

Accordingly, the charges for admission to roller derby exhibitions are subject to sales tax.

DATED: January 27, 1987

s/FRANK J. PUCCIA
Director
Technical Services Bureau

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