Tax Type
Retail Sales and Use Tax
Description
Dinner theater; Separate charges for dinner and play
Topic
Collection of Tax
Date Issued
09-03-1985
September 3, 1985
RE: §58.1-1821 Application/Sales and Use Tax
Dear ****
This will reply to your letter and attached Points and Authorities, dated July 16, 1985, in support of an application for correction of an assessment issued in the above referenced case.
FACTS
****** (hereinafter, "Taxpayer") operates a dinner theater where patrons may purchase either the dinner or the play separately, or both the dinner and the play. Taxpayer separates the cost of the dinner from the cost of the play and computes sales tax due on the cost of the dinner only. Pursuant to the audit in this case, Taxpayer was assessed sales tax on the total charge for both the dinner and the play. Taxpayer contests the imposition of sales tax on this total charge.
DETERMINATION
§630-10-64 of the Virginia Retail Sales and Use Tax Regulations provides in pertinent part, that "Retail sales of meals by restaurants, hotels, motels, clubs, caterers, cafes and others are taxable." Furthermore, the regulation continues, "cover, minimum and room service charges in connection with the provision of meals are a part of the sales price and are taxable." However, §63O-10-2.1 of the Regulations, provides that the tax is inapplicable, "to sales of tickets, fees, charges or voluntary contributions for admissions to places of amusement entertainment [or] exhibition ..."
Inasmuch as the Taxpayer in the present case clearly and specifically segregates its charges for dinner from its charges for entertainment in collecting and remitting the sales tax, I find basis for correction of the assessment.
Therefore, based on all of the foregoing, the assessment shall be adjusted in this case to abate that portion of the assessment representing charges for admission to Taxpayer's theatrical productions.
Sincerely,
W. H. Forst
Tax Commissioner
RE: §58.1-1821 Application/Sales and Use Tax
Dear ****
This will reply to your letter and attached Points and Authorities, dated July 16, 1985, in support of an application for correction of an assessment issued in the above referenced case.
FACTS
****** (hereinafter, "Taxpayer") operates a dinner theater where patrons may purchase either the dinner or the play separately, or both the dinner and the play. Taxpayer separates the cost of the dinner from the cost of the play and computes sales tax due on the cost of the dinner only. Pursuant to the audit in this case, Taxpayer was assessed sales tax on the total charge for both the dinner and the play. Taxpayer contests the imposition of sales tax on this total charge.
DETERMINATION
§630-10-64 of the Virginia Retail Sales and Use Tax Regulations provides in pertinent part, that "Retail sales of meals by restaurants, hotels, motels, clubs, caterers, cafes and others are taxable." Furthermore, the regulation continues, "cover, minimum and room service charges in connection with the provision of meals are a part of the sales price and are taxable." However, §63O-10-2.1 of the Regulations, provides that the tax is inapplicable, "to sales of tickets, fees, charges or voluntary contributions for admissions to places of amusement entertainment [or] exhibition ..."
Inasmuch as the Taxpayer in the present case clearly and specifically segregates its charges for dinner from its charges for entertainment in collecting and remitting the sales tax, I find basis for correction of the assessment.
Therefore, based on all of the foregoing, the assessment shall be adjusted in this case to abate that portion of the assessment representing charges for admission to Taxpayer's theatrical productions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner