Posted Thursday, June 17, 2004 9:40 AM | Contributed by Jeff
Tickets to amusement parks would be taxed on one-quarter of their value under a bill that has passed both houses of the Legislature. The bill is aimed at clarifying how New York’s sales tax applies to theme parks. Under state law, the tax applies to the admission price to parks but not the cost of rides.
Read more from The Democrat & Chronicle.
Example - Ticket cost - $40
NY State Base Sales tax amount - $10 (25% of $40)
NY State effective Sales tax rate - 8.25%
Tax on that ticket owed to NY State - $0.83 (8.25% of $10)
Basically what the legislature is saying is that 75% of the revenue from the tickets pays for the rides - which is not taxable (as sales tax) but the admission to the park is (which is the remainder of your ticket price.)
*** This post was edited by redman822 6/17/2004 12:08:43 PM ***
I'm sure there's some really obvious difference, but I don't see it yet.
That is why only the admission is taxed - not the portion that goes to "build" the rides.*** This post was edited by redman822 6/19/2004 9:00:40 AM ***
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