Can’t Buck Tax for Mechanical Bull Rides in Alabama

Wednesday, August 9th, 2017

 
 
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Alabama
Entertainment

The Alabama Tax Tribunal recently ruled that fees charged to ride a mechanical bull are subject to sales tax.

The taxpayer operated a mechanical bull in Alabama. The taxpayer either charged riders for each use or accepted a flat fee from event sponsors to make the bull available to attendees.

Alabama sales tax applies to the gross receipts received from conducting or operating amusement devices, including mechanical bulls. The method of payment (e.g., per-ride, flat fee) is irrelevant. As a result, sales tax applied to all charges for use of the mechanical bull.

Note that the taxpayer was not subject to rental tax because it did not transfer operational control and possession of the mechanical bull to its customers.

https://www.ttrus.com/MechanicalBull


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.

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