Live-entertainment tax takes effect

Entertainment tax takes effect

The Live Entertainment Tax passed by the 2003 Legislature took effect Jan. 1.

The tax replaces and broadens the old casino entertainment tax, imposing a 10 percent levy on admission to live-entertainment events outside casinos as well as within them.

The tax excuses small venues with fewer than 300 seats. It imposes a 10 percent charge on admission, food, refreshments and merchandise sold at events seating 300 to 7,499 people and a 5 percent tax on admission to larger events.

Deputy Taxation Director Dino DiCianno said non-gaming facilities will pay the tax to the Department of Taxation. Gaming establishments will pay to the Gaming Control board as they have in the past.

Nonprofit, religious, charitable and fraternal events are exempt from the tax as is entertainment provided at trade shows, provided free in common areas of shopping malls and music provided by strolling musicians.

The tax is projected to bring in $116.9 million over the next 18 months of this budget cycle.