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Amusement Tax

Reference Number: MTAS-1859
Reviewed Date: 11/30/2022

Revenue Class: Local Taxes

Fund: General

Account No.: 31860

Description: A tax levied at the same rate for tangible personal property on the sales price of each sale at retail of dues or fees for membership to recreational clubs, admission ticket sales, entrance fees, and charges made for the privilege of using tangible personal property for amusement, sports, entertainment or recreational activities.

Authorization: T.C.A. § 67-6-202; T.C.A. § 67-6-212; T.C.A. § 67-6-330

Requirements or Restrictions: Free or complimentary tickets or admissions are to be computed at equivalent values and included as sales, unless they are provided to people attending a public school, college, or university.

Current Rate: Municipalities receive 99 percent of 4.603 percent of six percent of the statewide seven percent sales tax. This allocation is different for premiere type tourist resorts and Tennessee River resort districts. All increased revenues from the 2002 state sales tax rate increase from six percent to seven percent go to the state general fund (Public Acts, 2002 Chapter 856, Section 4).

Frequency of Payment: Monthly.

Late Pay Penalty: N/A

Exemptions: There are several other exemptions listed in T.C.A. § 67-6-330 that include admissions to K-12 school activities, fairs, dues to 501(c) organizations, and admissions to various nonprofit organizations’ events. Notice #19-11 details exemptions for physical fitness facilities.

Collection: The state collects the tax and distributes to municipalities.

Use Restrictions: None.