Missouri ruled that fees for classes with skill-based lesson plans were not subject to sales tax, but charges for hosting birthday parties were taxable.
The taxpayer operated a facility that offered classes in gymnastics, dance, tumbling, parkour, and competitive cheerleading. The taxpayer also charged fees for open play on the equipment and for hosting birthday parties at the facility.
Missouri taxes fees paid to any place of amusement, entertainment, recreation, games, and athletic events. However, amounts paid for any instructional class are not taxable. The gymnastics, dance, tumbling, and parkour classes were skill-based instructional classes and were not taxable. The fees for open play and hosting parties, however, were taxable fees for amusements.