New Jersey Municipalities Authorized to Impose Surcharge on Admissions to Certain Places

A New Jersey ordinance imposing a 5% surcharge on admission charges that are subject to sales tax may be adopted by municipalities that have a major place of amusement. Any surcharge imposed is not considered part of the sale price for purpose of determining sales and use tax, but must be separately-stated on any bill, receipt, invoice or similar document provided to the customer. A “major place amusement” is defined as a place of amusement (other than a motion picture theater and amusement park) that has admission charges regularly paid, that is not owned by the state or an independent state authority, and that contains fixed seats or bleacher capacity for at least 10,000 patrons. Additional rules and regulations apply. For an update on this news item, click here. (Ch. 302, S.B. 2971, Laws 2008)

Posted on October 8, 2008