Revenue Notice #17-08: Sales and Use Tax – Admissions - Taxation of Room Rentals

Introduction

This Revenue Notice clarifies the Department’s position on the taxation of room rentals under Minnesota Statutes section 297A.61, subdivision 3(g)(1).

Department Position

 The sale of the privilege of admission to places of amusement, recreational areas, and athletic events is taxable under Minnesota Statutes section 297A.61, subdivision 3(g)(1).

When a seller rents a room located within a place of amusement, a recreational area or an athletic event:

• The room-rental charge is taxable as the sale of the privilege of admission if the sale includes – or requires the separate purchase of – the privilege of admission to these areas.
• The room-rental charge is not taxable if the sale does not provide the customer with the privilege of admission – or require the customer to purchase – the privilege of admission to these areas.

Signed by Deputy Commissioner Ryan Church and published in the Minnesota State Register on October 23, 2017.