Is admission to a 'Haunted Hayride' exempt from sales tax as a dramatic performance, or taxable as admission to a place of amusement?

Plain-English summary

Haunted Haywagon Rides, Inc. produces a Halloween attraction called "Haunted Hayride." Patrons ride haywagons past twenty or more one-to-two-minute scenes performed by actors playing horror characters (Leatherface, Norman Bates, the Wolfman, and the like). The operator does everything a theatrical production would: an experienced author writes scripts, actors audition and rehearse, and each performer memorizes lines, is given specific blocking, and is coached in characterization. Each wagon has a P.A. system for a narrator, holds fifty people (reservations required), and there are about twenty performances during October. Audience participation is prohibited. The operator asked whether admission is exempt from sales tax as a dramatic performance.

The Department's answer, under Tax Law § 1105(f)(1) and Regulation § 527.10(d)(2):

• Admissions to a place of amusement are taxable, with an exception. Section 1105(f)(1) taxes any admission charge over ten cents to a place of amusement, except charges for admission to dramatic or musical arts performances.
• This is a "variety show," not a dramatic performance. Regulation § 527.10(d)(2) says dramatic and musical arts performances do not include variety shows and similar performances. Its Example 5 (several acts of costumed characters portraying scenes, even with audience participation invited) does not qualify. The Department found the Haunted Hayride is a variety show: apart from the Halloween theme, there is no continuity between the characters and the twenty-plus separate acts.
• Result: taxable. Because it isn't a dramatic or musical arts performance, the admission charges are subject to sales tax.

What this means for you

"Dramatic performance" means one connected work, not a string of acts

The exemption for dramatic or musical arts performances is narrow. A production made of many short, disconnected scenes — however well-scripted and rehearsed — reads as a variety show and stays taxable. Continuity of story and character across the whole performance is what the Department looked for and didn't find.

Production values don't decide it

Scripts, auditions, rehearsals, professional actors, blocking, and coaching did not make the Haunted Hayride a dramatic performance. The structure of the show — not the effort behind it — controlled the outcome.

Seasonal attraction operators should collect tax on admissions

If you run a haunted attraction, hayride, or similar multi-scene event, plan to collect sales tax on admission charges. Don't assume theatrical trappings bring you within the dramatic-arts exclusion.

Accountants and tax professionals

The opinion applies § 527.10(d)(2)'s variety-show carve-out (and its Example 5) to deny the § 1105(f)(1) dramatic-arts exclusion where the production lacks continuity across its component acts.

Common questions

Q: Is admission to a haunted hayride taxable in New York?
A: Yes. The Department treated this Haunted Hayride as a taxable variety show, not an exempt dramatic performance, so the admission charges are subject to sales tax.

Q: The operator used scripts, actors, and rehearsals — why isn't it a dramatic performance?
A: Because the show is a series of twenty or more short, disconnected scenes with no continuity beyond the Halloween theme. Regulation § 527.10(d)(2) treats that as a variety show, which is not covered by the exemption.

Q: What does qualify for the dramatic or musical arts exclusion?
A: A connected dramatic or musical arts performance. Variety shows, magic shows, circuses, animal acts, ice shows, and aquatic shows are specifically excluded from the exemption.

Q: Does audience participation matter?
A: The regulation's Example 5 (costumed characters portraying scenes, inviting audience participation) doesn't qualify; here audience participation was actually prohibited, but the show still failed the exemption because it lacked continuity.

Citations and references

Statutes and regulations:

• Tax Law § 1105(f)(1) (tax on admission charges over ten cents to a place of amusement; exception for dramatic or musical arts performances)
• Sales and Use Tax Regulations § 527.10(d)(2) (dramatic or musical arts performances exclude variety shows and similar performances; Example 5)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1992.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a92_40s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-92 (40)S
Sales Tax
May 15, 1992

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE

ADVISORY OPINION

PETITION NO. S911217A

On December 17, 1991, a Petition for Advisory Opinion was received from Haunted
Haywagon Rides, Inc., PO Box 131, Katonch, New York 10536.
The issue raised by Petitioner, Haunted Haywagon Rides, Inc., is whether charges for
admissions to "Haunted Hayride" are exempt from sales tax as admissions to a dramatic
performance.
Petitioner produces a production known as "Haunted Hayride". A basic script is written for
the individual characters included in the scenarios. The scripted characters are based on real-life and
fictional characters which relate to the Halloween theme of the show, i.e. Leatherface from The
Texas Chainsaw Massacre, Norman Bates from Psycho, The Wolfman, etc. The script is prepared
by an experienced author of dramatic works.
Petitioner utilizes actors and actresses from local theatre groups to perform in an outdoor
theater setting. Petitioner utilizes the process and procedures of other theatrical endeavors by
conducting auditions for performers, preparation of scripts, rehearsals, set construction, costume
design and director coaching.
Each actor/character memorize their portions of the script, and are told in which areas of the
script they could ad-lib. Each actor is given specific blocking (i.e., where to stand, where to move,
etc.) and is coached in their individual characterizations to maintain the artistic and dramatic
originality of each character. The actors are then rehearsed in their individual scenarios which are
part of the entire show.
A haywagon is used primarily as a seating arrangement by which audiences may witness the
theatrical performances of each actor at scheduled artistic performances of a character. Patrons board
haywagons for access to twenty or more one to two minute performances, with no continuity
between the individual acts, at different settings on grounds leased by Petitioner. Each wagon is
equipped with a public address system device for use by trained actors, serving as rehearsed narrators
who have memorized a script of their own character. Each wagon contains seating for fifty people,
for which advanced reservations are required. Petitioner conducts about twenty performances, all
during the month of October.
The actors begin to perform their parts, using the scripted dialogue, as each haywagon
approaches, maintaining the scripted character during the whole segment in which the wagon was
in view. Audience participation is totally prohibited since it would interfere with the actor's
performance.

-2­
TSB-A-92 (40)S
Sales Tax
May 15, 1992

Section 1105(f)(l) of the Tax Law imposes sales tax upon "[A]ny admission charge in excess
of ten cents to or for the use of any place of amusement in the State, except charges for admission
to. . .dramatic or musical art performances, . . ."
Section 527.10(d)(2) of the Sales and Use Tax Regulations provides as follows:

(2) Charges for admission to dramatic or musical arts performances are excluded
from tax. Dramatic and musical arts performances do not include variety shows,
magic shows, circuses, animal acts, ice shows, aquatic shows and similar
performance

• *

*

Example 5: A show is composed of several acts in which performers dressed as story
book characters, appear with musical accompaniment portray scenes from books, and
invite audience participation. This does not qualify as a dramatic or musical arts
presentation. (emphasis added)
Petitioner is conducting a variety show within the meaning and example of Section
527.10(d)(2) of the Sales and Use Tax Regulations since, with the exception of the Halloween
theme, there is no continuity between the characters and the twenty or more acts presented.
Accordingly, pursuant to Section 1105(f)(l) of the Tax Law and Section 527.10(d)(2) of the Sales
and Use Tax Regulations "Haunted Hayride" is not a dramatic or musical arts performance and
therefore the admission charges to the performances are subject to sales tax.

DATED: May 15, 1992

s/PAUL B. COBURN
Deputy Director
Taxpayer Services Division

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