The
following information is for general guidance only. Please be advised that
any information made available through FAQs cannot change controlling statutes
or regulations and any such information is not intended to constitute “written
advice” for purposes of NRS 360.294. To obtain written advice, please
request an advisory opinion.
What you need to know about Nevada's Live Entertainment Tax
Enacted
in 2004, Live Entertainment Tax is administered by two State agencies, the
Gaming Control Board for live entertainment events held within licensed gaming
establishments; and the Department of Taxation for live entertainment events
held in other venues and live entertainment provided by escorts and escort
services. Laws governing the Live Entertainment Tax are Nevada Revised Statute
(NRS) Chapter 368A -Tax on Live Entertainment; and Nevada Administrative Code
(NAC) Chapter 368A. Both can be found on the Nevada Legislature's website at http://www.leg.state.nv.us/.
If
you are a licensed gaming establishment please refer to the Nevada Gaming
Control Board website at http://gaming.nv.gov for additional
information.
How is Live Entertainment defined?
Live
Entertainment is defined by statute as meaning any activity provided for
pleasure, enjoyment, recreation, relaxation, diversion or other similar purpose
by a person or persons who are physically present when providing an activity to
a patron or group of patrons who are physically present. It includes without
limitation one or more of the following:
·
Music
or vocals provided by one or more professional or amateur musicians or
vocalists;
·
Dancing
performed by one or more professional or amateur dancers or performers,
including, without limitation dancing performed by one or more persons who are
nude or partially nude;
·
Acting
or drama provided by one or more professional or amateur actors or players;
·
Acrobatics
or stunts provided by one or more professional or amateur acrobats, performers
or stunt persons;
·
Animal
stunts or performances induced by one or more animal handlers or trainers,
except animal behaviors induced by animal trainers or caretakers primarily for
the purpose of education and scientific research;
·
Athletic
or sporting contests, events or exhibitions provided by one or more
professional or amateur athletes or sportsmen except an athletic contest event
or exhibition conducted by a professional team based in this State if the
professional team based in this State is a participant in the contest, event or
exhibition.
·
Comedy
or magic provided by one or more professional or amateur comedians, magicians,
illusionists, entertainers or performers.
·
A
show or production involving any combination of the activities described above.
·
A
performance by a disc jockey who presents recorded music.
·
An
escort who is escorting one or more persons at a location or locations in this
State.
It
excludes the following:
·
Television,
radio, closed circuit or Internet broadcasts of live entertainment.
·
Entertainment
provided by a patron or patrons, including, without limitation, singing by
patrons or dancing by or between patrons if they receive no compensation from
any source for providing the entertainment.
·
An activity that is an
uncompensated, spontaneous performance that is not longer than 20 minutes
during a 60-minute period;
·
An activity described in the
section above that does not constitute a performance, including, without
limitation, go-go dancing; or
·
Marketing or promotional
activities, including, without limitation, dancing or singing that is for a
period that does not exceed 20 minutes during a 60-minute period and that is associated
with the serving of food and beverages, for example bartenders, waiters or
waitress.
Who is responsible for this tax?
NRS
368A.110 defines the taxpayer for non-gaming facilities as the owner or
operator of the facility where the live
entertainment is provided; or in the case of a publicly owned facility or
public land, the person who collects
the taxable receipts. It also includes
an escort or escort service. An escort
means a person who, for monetary consideration, in the form of a fee,
commission or salary, dates, socializes, visits, consorts with or accompanies
another or others to or about social affairs, entertainments or places of
amusement or within any place of public resort or within any private
quarters. An escort service means a
person who for a fee, commission, profit, payment or other monetary consideration,
furnishes, refers, or offers to furnish or refer an escort to a patron.
It does not include a person who advertises, or works as
an employee, agent or independent contractor for a person who advertises that
sexual conduct will be provided to a patron, or who solicits, offers to provide
or provides acts of sexual conduct to a patron.
What is the Live Entertainment Tax rate?
Effective
October 1, 2015, the rate is 9% of the admission charge to a facility that
provides live entertainment with a maximum occupancy of 200 or more people as rated by the Nevada State Fire Marshal; or 9% of the
charge, expressed in money, for the live entertainment provided by an escort.
Does the existence of an admission charge automatically trigger the Live Entertainment Tax?
No. If there is no live entertainment being provided, then the tax does
not apply. However, when the admission
charge is imposed prior to the start of live entertainment, the admission
charge is taxable.
How is “maximum occupancy” determined?
The
“maximum occupancy” of the facility where the live entertainment is taking
place is determined by using the following criteria in order of priority: a)
The maximum occupancy established for the facility by the State Fire Marshall,
or by another local government agency; b) If the facility occupancy is not
established, then by the maximum occupancy designated on any permits required
for the event; or c) If such a permit does not designate the maximum occupancy
of the facility, the actual seating capacity of the facility will be used.
What is the registration fee for Live Entertainment Tax?
There
is no registration fee for this tax. A taxpayer who intends to provide live
entertainment at a facility that is not in a licensed gaming establishment or an escort or escort
service shall contact the Department of Taxation and register to collect and
remit the Live Entertainment Tax.
When is the Live Entertainment Tax due?
The reporting frequency is monthly. The Live Entertainment Tax returns for non-gaming taxpayers must be filed on or before the last day of the month, reporting the amount of
taxable receipts for the preceding month regardless of when the actual event may occur. A return must be filed even when
there are no live entertainment admission charges in the month and the tax is zero.
Can a taxpayer charge their patrons the Live Entertainment Tax they are required to pay?
Yes.
The Live Entertainment Tax must be added to and collected from the purchaser at
the time of purchase or payment of escort services. Each ticket for admission
to a facility where live entertainment is provided must show on its face the
admission charge or the seller of the admission must prominently display a
notice disclosing the admission charge at the box office or other place where
the charge is made. Taxpayers are
required to keep their records for at least 4 years.
Are there any Live Entertainment events not subject to the tax?
Yes:
Live entertainment that is
governed by the Nevada Interscholastic Activities Association pursuant to NRS
386.420 to 386.470, inclusive, or is provided or sponsored by an elementary
school, junior high school, middle school or high school, if only pupils or faculty
provide the live entertainment.
An athletic contest, event,
tournament or exhibition provided by an institution of the Nevada System of
Higher Education, if students of such an institution are contestants in the
contest, event, tournament or exhibition.
Live entertainment that is
provided by or entirely for the benefit of a nonprofit religious, charitable,
fraternal or other organization that qualifies as a tax-exempt organization
pursuant to 26 U.S.C. § 501(c), or a nonprofit corporation organized or existing
under the provisions of chapter 82 of NRS only if the number of tickets to
the live entertainment which are offered for sale or other distribution to
patrons, either directly or indirectly through a partner, subsidiary, client,
affiliate or other collaborator, is less than 7,500.
Any boxing contest or
exhibition governed by the provisions of chapter 467 of NRS.
Live entertainment that is
provided at a facility with a maximum occupancy of less than 200 persons unless
the live entertainment is provided by an escort.
Live entertainment that is
provided at a trade show.
Music performed by musicians
who move constantly through the audience if no other form of live entertainment
is afforded to the patrons.
Live entertainment that is
provided in the common area of a shopping mall, whether indoors or out, unless
the entertainment is provided in a facility located within the mall.
Food and product demonstrations
provided at a shopping mall, a craft show or an establishment that sells
grocery products, housewares, hardware or other supplies for the home.
Live entertainment that is
incidental to an amusement ride, a motion simulator or a similar digital,
electronic, mechanical or electromechanical attraction.
A race scheduled at a racetrack
in this State and sanctioned by the National Association for Stock Car
Auto Racing, if two or more such races are held at that racetrack during
the same calendar year.
An athletic contest, event or
exhibition conducted by a professional team based in this State if the professional
team based in this State is a participant in the contest, event or exhibition.
Live
entertainment that is provided by or entirely for the benefit of a governmental
entity.What special steps should a taxpayer take if they intend to consider an event exempt from the Live Entertainment Tax?
NRS
368A.200 (4)(d) provides guidance as to when an event is not subject to the tax
because the proceeds go to a qualifying organization and less than 7500 tickets
are offered for sale. The taxpayer is responsible to ensure a non-profit
organization qualifies for exempt status from Live Entertainment Tax. If it is
subsequently determined that the taxpayer failed to pay taxes on an event that
was improperly treated as a non-profit benefit, the Live Entertainment Tax will
be assessed on all admissions.
Taxpayers
must maintain records showing they were entitled to exempt a non-profit
organization from Live Entertainment Tax. Taxpayers are responsible for
ensuring that the organization qualifies as a non-profit entity and qualifies
for exemption from Live Entertainment Tax because less than 7,500 tickets are
offered for sale. In addition, the taxpayer must keep detailed records showing
the amounts collected, the amounts remitted to the non-profit organization, and
the direct supportable costs associated with the event. A copy of the agreement
between the taxpayer and the qualifying organization must also be maintained. NAC
368A.160
What is included in a taxable admission charge?
The full amount paid for access to a live entertainment
venue is included in the taxable admission charge including any service charge
that is received by the taxpayer. It includes the full amount received by an
escort or escort service. NRS 368A.200(2)(b) and
NAC 368A.150 allow a deduction for gratuities directly or indirectly remitted
to persons employed at the facility where live entertainment is provided and a service
charge imposed in connection with the use of a credit card or debit card which is
collected and retained by persons other than the taxpayer, as long as these
fees are supported by documentation. Also excluded are amounts imposed
and retained by a ticket broker or a ticket service provider.
Are speeches by motivational, informational or political speakers considered Live Entertainment?
No, unless the speaker engages in other activities considered live
entertainment.
Are circuses Live Entertainment?
Yes, a circus typically combines a number of activities specifically
defined as live entertainment in NRS 368A.090(2)(a).
In an event that has been determined to have entertainment that is not considered “Live Entertainment” under the definition found in NRS 368A.090, what if someone sings a song such as the National Anthem as part of the event? Is the event now taxable?
No,
in most cases. While it is true that singing is a form of live entertainment,
in most cases the singing of the National Anthem or similar presentation, is
entirely incidental to the event itself. While this specific issue is not
addressed in the law or regulation, the informal policy stated herein conforms
to the concept stated in NRS 368A.090(2)(b) regarding performances that are not
considered live entertainment. This guidance applies only to the cases where
any singing remains incidental to the event. Generally, singing will be
deemed incidental to the event if only one song is sung during an event that
otherwise included no other live entertainment.