Effective:  July 1, 1994

The 1994 Utah Legislature passed Senate Bill 191, clarifying that all admissions and user fees are subject to Utah sales tax.

Effective July 1, 1994, admissions and user fees charged for any amusement, entertainment, recreation, exhibition, cultural, or athletic activity shall be subject to Utah sales tax. 

Religious and charitable organizations are not affected by Senate Bill 191. Sales to or by religious and charitable organizations, including admissions and user fees, are not subject to the tax. However, Senate Bill 191 does require state and local governments to collect tax on admissions and user fees for government-sponsored activities.

Taxable activities include, but are not limited to, admissions and user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances, boxing and wrestling matches, closed-circuit television broadcasts, billiard or pool parlors, bowling lanes, golf and miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, and horseback rides.

Many of the above-listed items currently are subject to sales tax. Businesses and state and local public entities currently collecting sales tax for admissions and user fees should continue to collect tax as they have. All other businesses charging admissions or user fees must be prepared to collect sales tax on July 1, 1994. Likewise, state and local government entities must be prepared, beginning July 1, 1994, to collect sales tax on all admissions and user fees previously not subject to tax.

Exceptions
The law states the phrase "admissions and user fees" includes season passes, but does not include "annual membership dues paid to a private organization." A proposed Tax Commission rule, when final, is expected to clarify that fees beyond the annual membership dues paid to a private organization such as a country club for use of the golf course, pool, or any other related activity, are considered season passes and are therefore taxable. In addition, the rule is expected to define the phrase, "annual membership dues paid to a private organization," to include only membership dues paid to an organization whose members, directly or indirectly, establish the level of the membership dues. Finally, the proposed rule provides that amounts paid for the following activities are not admissions or user fees:

• lessons, public or private; 
• sign-ups for participation in amateur athletics if the activity is sponsored by a state governmental entity, or a nonprofit corporation or organization, if the nonprofit corporation or organization's primary purpose, as stated in its articles or bylaws, is the sponsoring, promoting, and encouraging of amateur athletics;
• sign-ups for participation in school activities. Sign-up for participation in school activities excludes attendance as a spectator at school activities.

Please note, however, that fees for the above activities must be separately stated on an invoice in order to remain untaxed. If, for example, fees for a golf lesson are included with fees for use of the golf course, the entire amount is subject to sales tax.

Transition policy 
A transition policy shall be in effect for the period up to July 1, 1994. Pursuant to that policy, if a contract is signed and a deposit remitted to a business entity prior to July 1, 1994, the entire contract shall remain exempt from the sales tax, regardless of when the activity actually occurs. For purposes of this policy, the amount of the deposit shall be the amount the entity customarily requires.

For your convenience, we have enclosed a chart indicating the sales tax rates by county and city. Once you have determined the correct sales tax rate for your area, you may request rate charts by detaching the top portion of the rate information sheet, with the appropriate boxes marked, and mailing it to the Tax Commission at the address listed on the form. 

Questions regarding this Tax Bulletin should be directed in writing to Taxpayer Services, 160 East 300 South, Salt Lake City, UT 84134, or by calling (800) 530-4848 or, toll-free 1-800-662-4335. Hearing-impaired callers may call the Operations Division's Telecommunication Device for the Deaf (TDD) at (801) 530-7640.

Notice of Move
In July 1994, The State Tax Commission will be moving to new offices. After July 1, please address all mail to Utah State Tax Commission, 210 North 1950 West, Salt Lake City, UT 84134. The Tax Commission's toll-free line, 1-800-662-4335, will remain the same. The Salt Lake metro area number will change to 297-2200 sometime during July. Salt Lake callers please use the 530-4848 number until you receive a recording that the number has changed. Because staff will be moving in stages during July, if you need to visit our offices during that month, please call in advance to determine whether you will be better served at the Heber Wells Building or the new location.