97-060
Response
September 26, 1997
September
11, 1997
Dear
Commissioners,
I would like to know if
selling reserved seats for the high school football season qualifies as a tax
exempt fund raising activity? Each
August our high school office sells reserved seats in the "Home" bleachers
for $15.00 each. For this price the Vice Principal marks a 2 ft. section on the
bleachers with the purchasers name. This saves the purchaser from having to
come early to the football game and save seats with a blanket. The $15.00 only
reserves the seat. It is not an admission fee. The admission fee must be paid
by purchasing a season pass or ticket at the gate. I pay sales tax on the
passes and tickets. I am hoping the reserved seats will qualify as a tax exempt
fund raiser. The funds are all deposited in a dedicated account named reserved
seats/bleachers." The high school controls the account and the money is
used to purchase equipment and materials for the school.
Sincerely
NAME
September
26, 1997
NAME
ADDRESS
CITY
STATE ZIP
Advisory
Opinion - Charges for reserved seating at football games.
Dear
NAME,
We have received your request for
sales tax guidance pertaining to sales of reserved seats at your school’s
football games. We offer the following:
Utah law exempts from sales tax all
“sales relating to schools” and all “fundraising sales.” (See §59-12-104 (39)). The term “sales relating to schools”
includes sales directly related to the school’s educational functions, but
expressly excludes gate receipts for school sporting events. (See §59-12-102 (21)). You have correctly determined that charges
for admission to the games are taxable.
It appears that the charge for
reserved seats is a charge that is separate from the gate receipts and that is
structured to fall within the fundraising exemption. On that basis, we agree that these charges are exempt from tax so
long as the fundraising activity is part of an officially sanctioned school
activity that is conducted in conformance with your school’s or school
district’s formal fundraising policy, that the receipts are not used in any
manner to compensate school or educational personnel, and that the receipts are
deposited in a dedicated account which is controlled by the school.
Please let us know if you have other
questions.
For the
Commission,
Joe
B. Pacheco,
Commissioner
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