In this example, the vendors reported that 1,000 tickets were redeemed for alcoholic beverages, and 2,000 tickets were redeemed for food and soft drinks. To determine the percent of the total ticket sales subject to the 9 percent sales tax rate the operator divides the total number of tickets redeemed for alcoholic beverages by the total number of tickets redeemed. Next, multiply the total number of tickets sold or exchanged for consideration by the calculated percentage to determine the number of tickets subject to 9 percent state sales tax. Divide the dollar value of those tickets by 1.09 to determine the amount subject to tax. The remaining tickets sold or exchanged for consideration are subject to 6.5 percent state sales tax.
All tickets are also subject to applicable local option taxes.
One thousand tickets are traded for six 30-second advertisements on the radio. Another 2,000 tickets are exchanged for volunteer help. If you have tax questions, please call one of our taxhelp numbers.