The tax is collected by the State Comptroller's Office. The entire amount of the tax collected, less administrative expenses, is returned to the municipalities and counties imposing the tax. Any place offering team or individual sports activities is considered a recreational or sports facility. Examples include, but are not limited to, roller or ice skating rinks, tennis courts, sports fields, indoor volleyball and soccer facilities, paintball facilities, golf courses, and firing ranges. Taxable activities include charges for birthday parties, league fees, daily usage fees, and rentals of equipment and rentals of the entire facility.
Equipment rentals are subject to both the sales tax and the admissions and amusement tax.
Examples of rentals subject to both taxes include, but are not limited to, golf carts, golf clubs, roller skates, ice skates, bowling shoes, paintball guns and equipment. Charges for the use of bowling alleys and lanes are exempt, as are club memberships allowing unlimited usage of the facilities. Charges for ongoing classes by sports-related schools which are not league oriented and do not promote one time use are also exempt from the tax. Examples of this type of sports-related school are gymnastic, karate, and dance schools. Charges for lessons or instructional fees are not subject to the tax.