Parking and business improvement areas

From the 2024 DOR Tax Exemption Study

(3) (m) "Sale at retail" or "retail sale" include the sale or charge made by persons engaged in providing "amusement and recreation services" and "physical fitness services" as those terms are defined in (b) and (l) of this subsection. The term "sale at retail" or "retail sale" does not include: The sale of or charge made for providing facilities where a person is merely a spectator, such as movies, concerts, sporting events, and the like; the sale of or charge made for instructional lessons, or league fees and/or entry fees; charges made for carnival rides … or, the charge made for entry to an amusement park or theme park where the predominant activities in the area are similar to those found at carnivals. Rule 183(2) (emphasis added). The definitions of both amusement and recreation and physical fitness services make clear that charges for instructional lessons in activities that are otherwise defined as retail sales are not classified as retail sales because the primary focus of the activity is the instruction. ETA 3104.2009 (ETA 3104) gives guidance on what amounts to instructional lessons in the context of physical fitness services and Rule 183: Instructional lessons for activ