The operator must also pay sales or use tax on any tickets that are exchanged for consideration, i.e., bartering tickets in exchange for advertising or volunteer help. If tax is included in the ticket price, the operator should reduce the gross receipts by the amount of tax included in the ticket price to determine the amount subject to tax. When tickets are sold for items taxed at different rates, the operator must have a reasonable verifiable method in place to determine the receipts subject to sales tax at each tax rate. If no distinction can be made, all tickets are subject to tax at the higher rate. Example 1 Different colored tickets are sold for food, soft drinks or alcoholic beverages from the various vendors at an event.
Sales tax is included in the price of each ticket.
The operator must keep track of the number of orange tickets sold and the number of blue tickets sold. To determine the tax due, the operator should divide the gross receipts from the blue tickets by 1.065 to get the amount subject to tax. Any local option taxes also apply. An event is held where the same ticket can be used to purchase food, soft drinks and alcoholic beverages from the various vendors. Individual vendors at the event sell both food and alcoholic beverages.