Ohio Taxpayer Entitled to Refund on Taxes Collected on Movie Tickets

Wednesday, April 16th, 2014

 
 
Share
Link
Ohio
General

The Ohio Board of Tax Appeals recently released a decision finding that a movie theater owner was entitled to a refund of tax collected on movie tickets.

The taxpayer operated a movie theater in Ohio. The taxpayer had also operated theaters in West Virginia. When the taxpayer began operating the theater, it believed that Ohio, like West Virginia, taxed movie ticket admissions. The taxpayer remitted tax from movie ticket sales for a couple years. Tax was not separately stated on charges for tickets. Rather, the taxpayer's accounting software calculated the amount of the ticket sale that constituted sales tax. When the taxpayer found out that Ohio sales tax did not apply to movie ticket admissions in Ohio, it requested a refund. The taxpayer did not change its ticket prices after it stopped remitting tax.

Ohio allows vendors to seek refunds of sales taxes paid in error. The vendor must refund to the consumers the full amount of tax the consumers paid in error. The Tax Commissioner argued that because the taxpayer could not identify all the consumers who purchased movie tickets, the vendor could not get a refund.

The Board ruled that the vendor could get a refund because the consumers had not paid tax. The taxpayer did not separately state a charge for tax and was not eligible to sell items without separately stating a charge for tax. The taxpayer also did not change the ticket prices when it stopped remitting tax. There was no tax paid for the taxpayer to refund to consumers. The taxpayer could therefore get a refund for tax that it paid without showing that it refunded tax to consumers.

http://app.bta.ohio.gov/2012-N-3063.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.

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...

South Dakota Provides Guidance on the Taxation of Churches

Wednesday, October 3rd, 2018 -The South Dakota Department of Revenue (DOR) recently released guidance that provides information about how sa...

Mowing Services to Keep Right of Way Clear Taxable in...

Monday, October 1st, 2018 -The Arkansas Department of Finance and Administration recently ruled that lawn-mowing services to keep a right...