SALT Report 3007 – The Arkansas Department of Finance and Administration issued a notice for promoters and organizers of special events to remind them that they are required to register with the Department to collect and remit state and local sales and use taxes. The promoter or organizer is also required to provide each vendor special event tax reporting forms and any other information that the Department requires.
The notice defines a “special event” as an entertainment, amusement, recreational, or marketing event that occurs at a single location, on an irregular basis, and where tangible personal property is sold. Special events include music, auto, boat, gun, knife, home, and craft shows; flea markets; carnivals; circuses; bazaars; fairs; and art or merchandise exhibits.
During these events, tax will apply as follows:
- Tickets sales, admission fees, and charges for parking are subject to state and local sales taxes
- Charges or fees for camping spaces are subject to state and local sales taxes and the 2% tourism tax
- Rentals of tangible personal property, such as tables and chairs, are subject to the 1% short-term rental tax and the state and local sales taxes
All special event vendors are required to file daily reports and remit daily sales tax to the promoter in the reporting envelopes provided by the promoter. Within 30 days following the event, the promoter or organizer must forward all of the daily reports and payments collected from each vendor to the Department. If the promoter fails to remit the reports and payments, the promoter will be held liable for the taxes that they have collected from the vendors.
Lastly, the Department notes that the isolated sale exemption provided in § 26-52-401(17) does not apply to sales of taxable items at these events.
For Further Information