Skydiving Services Taxable as Amusement and Recreation Services in Washington

Tuesday, August 6th, 2013

 
 
Share
Link
Washington
General

The Washington Department of Revenue held that a taxpayer's provision of skydiving services was taxable.

A taxpayer provided parachute services, training, and equipment for skydivers. Skydivers paid "upjumper" fees to board the taxpayer's planes, jump, and land. Taxpayer provided extra training at no additional cost.

Washington taxes receipts from amusement and recreation services, including bungee jumping and skiing. Washington assessed tax on skydiving receipts as receipts from an amusement or recreation service. The taxpayer argued that federal law prevented Washington from taxing its skydiving services. Federal law prohibits states from taxing the transportation of an individual traveling in air commerce. "Air commerce" means "interstate, overseas, or foreign air commerce or ... any operation or navigation of aircraft within the limits of any Federal airway or any operation or navigation of aircraft which directly affects, or which may endanger safety in, interstate, overseas, or foreign air commerce." The taxpayer argued that it charged for transportation on the taxpayer's planes, making the transaction a sale of transportation in air commerce.

The Department held that the taxpayer's services were not "transportation" in air commerce. The essence of the service was skydiving, which is not transportation. Skydivers paid the taxpayer "for the thrill of going down, not the ride up." Skydiving services, therefore, were taxable amusement and recreation services.

http://dor.wa.gov/Docs/Rules/wtd/2013/32WTD139.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Louisiana Sales Tax Rates and Exemptions Set to Change...

Friday, May 25th, 2018 -Louisiana's sales tax rates and exemptions are set to change July 1, 2018, when several 2016 law changes will ...

Florida Exempts Generators Used in Assisted Living...

Thursday, May 24th, 2018 -Florida recently adopted an emergency rule on exempt sales of emergency generators for use at nursing homes an...

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...