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Tax and payouts
About US State Sales Tax
About US State Sales Tax
Updated over a week ago

Sales taxes are collected on the sale of items and services in the United States. Sales tax is governed at the state level, and no federal sales tax exists.

Event hosts are responsible for all compliance and tax obligations in areas where the event occurs. Humanitix cannot give tax advice. Please consult a tax professional. This is general guidance and is not legal advice. Nothing in this Help Centre overrides an individual state’s laws. For specific state guidance, please contact the state tax authority >> see your State Contact Information


😵‍💫 Taxable Sales by Event Hosts

Humanitix is a Marketplace for Event Hosts (sellers) to sell their Event Tickets (Admission Services) and other Add Ons (categories vary). The Humanitix marketplace supports sellers to calculate tax on their sales per the seller’s instruction. Sellers may have different sales tax collection obligations depending on the policies and operations of their business. Some event items may be taxed, while others may not be.

>> See the full guide on how to set up tax for your event to learn more about Sales Tax or Custom Tax settings.

Event hosts are responsible for all compliance and tax obligations in areas where the event occurs. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions


🧑‍⚖️ Who is Liable for Tax on Sales?

Answer: Event Hosts (Marketplace Sellers)

Event Hosts (Marketplace Sellers) are responsible for providing Humanitix USA Limited (Marketplace Facilitator) with true and accurate information about the taxability for Event Tickets and other Add Ons sold to Ticket Purchasers (Marketplace Buyers) via www.humanitix.com (Marketplace Platform).

Humanitix is relieved of liability for tax errors to the extent that the error was due to incorrect or untrue information given to Humanitix (facilitator) by the Host (seller).

A Host (seller) shall not furnish any information relating to an Event or Add On if the Host (seller) knows or has reasonable cause to believe the information is inaccurate or untrue. The Host (seller) must verify, correct and update information if they determine that taxes calculated on Event Tickets or Add On items sold via Humanitix (marketplace) are inaccurate or untrue.

>> See the full guide on how to calculate US sales taxes

Event hosts are responsible for all compliance and tax obligations in areas where the event occurs. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions


🤓 Identity of the Seller on Humanitix

The event host is always the seller of Event Tickets or Add Ons sold on www.humanitix.com. The identity of the seller (event hosts) can determine whether or not the goods or services sold by that particular person or entity are taxable. The key phrase here is “sold by”. Just because a person or business (event host) is exempt from paying sales tax as a buyer, does not mean they are automatically exempt from collecting sales tax as a seller. It all depends on who is selling, why, and which state they are selling in.

Do Nonprofits Need to Collect Sales Tax?

It depends. Every state has rules for determining the taxability of goods or services sold by a tax-exempt entity. Some nonprofits are not required to collect sales tax if the proceeds of the specific good or service being sold go toward funding their exempt mission. Other states will require a nonprofit to collect tax on specific goods or services, regardless of their tax-exempt status. Nonprofits, religious organizations, charities, and other tax-exempt groups with proper documentation are often not subject to sales tax collection. If your organization qualifies, please click the chat button to message us, and select "US sales tax exempt status". If you are selling Add-Ons, you’ll need to notify our team which specific Add-Ons meet the requirements in your state for sales tax exemption.

Tax that Cookie!

Did you know that Idaho and Hawaii are the only two states to tax the sale of

Girl Scout Cookies? Say what?! Troops started baking cookies back in 1917, with Thin Mints being the top seller. Even though most states consider the Cookie Program to be a fundraiser contributing directly to the 501(c)(3) tax-exempt mission, the states of Idaho and Hawaii say those snacks are taxable.

Remember, the buyer is paying the sales tax whereas the seller is collecting the sales tax on the state’s behalf.

See Help Centre Topic 🏗️ Set up tax for your event to learn more about sales tax or custom tax settings.

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions


🪣 Categories of Services or Items sold on Humanitix

The definitions of retail sales and taxable items vary among the states. Nearly all jurisdictions provide numerous categories of goods and services that are exempt from sales tax, or taxed at reduced rates. Humanitix partners with TaxJar to select product categories and corresponding tax codes.

Ticket Sales

All event tickets sold on Humanitix are categorized as Admission Services. This is described as ‘admission charges associated with entry to an event.’ Event Ticket sales should be used for Admission Services only. Some jurisdictions have special exemptions from sales tax on Admission Services based on the specific activities or types of participants at the event.

If your organization qualifies, please click the chat button to message us, and select "US sales tax exempt status".

Here is A state-by-state analysis of charging sales tax on services that shows Amusement/Recreation sales tax by state. The Event Host (seller) has a duty to verify, correct and update information if they determine that taxes calculated on Event Tickets sold via Humanitix (marketplace) are inaccurate or untrue.

"Participatory" Goats (stop staring!)

Some rad hosts offering Goat Yoga events were surprised to learn that the State of North Carolina (NC) charges sales tax on Admission Services. But alas! There was an exemption for this! A call with NC sales tax division went a little like this….

NC TAX ASSESSOR: What is goat yoga?!


HUMANITIX: People do yoga on a farm with goats.

NC TAX ASSESSOR: Hmmm… let me call you back. (time passes, and, they call us back). Question for you. Do the participants watch the goats? Or do they interact with the goats?


HUMANITIX: The goats jump on the yoggies backs and they offer goat snuggles.
NC TAX ASSESSOR: As long as they play with or learn from the goats, no sales tax! They don’t need to charge sales tax on admissions if the event is "participatory" versus a "show".

Add-On Sales

The category for Add-On items sold on Humanitix varies. Event Hosts are responsible for selecting the best category option for the Add-On item being sold when creating their new Add-On. The Event Host (seller) has a duty to verify, correct and update information if they determine that taxes calculated on Add-On items sold via Humanitix (marketplace) are inaccurate or untrue.

Don't Slice that Bagel!

Buying your bagel uncut or untoasted… fuhgeddabout! In the state of New York (NY), what your seller does to your bagel matters (at least it matters in the dark lonely cubicles of sales tax assessors). An “altered” bagel that is cut, toasted or smeared IS taxable as ‘prepared food’ in NY.

See Help Centre Topic Sell merch and extras with add-ons to learn more

Free or Promotional Items

Everyone loves a freebie and it is often a great marketing tactic to bring in more sales. How Sales Tax Applies to Discounts, Coupons & Promotions varies from state to state, so, it is very important to consult your Tax Advisor in these scenarios. And if you are gifting a taxable good to your attendees for “free,” you may be liable to pay Use Tax on the consumption of that taxable good. Humanitix does not calculate Use Tax due on the consumption of “free” taxable property. If your event purchases promotional items tax-free, you may be responsible to accrue and remit use tax when gifting the “free” item to your attendees. Ask your tax advisor about Sales Tax vs. Use Tax for more info.

When does a host need to pay Use Tax? In general, whenever an event host acquires tangible personal property without paying sales tax at the time of the sale, they must pay use tax directly to the State Department of Revenue. See an example of Colorado State’s Consumer Use Tax Guide.

Why do States care if I give it away for “free”? Let’s look at a for example: Imagine a Restaurant gives away "Free Dinner & Drink" to everyone who enters their restaurant. But they charge $100 Admission Ticket to enter the restaurant. If this restaurant is in a state that does not charge sales tax on Admission Services (tickets), then, the restaurant would be collecting and remitting zero dollars in sales tax. If this same state does charge sales tax on Prepared Foods and Alcohol sales, the restaurant would still be collecting and remitting zero dollars in sales tax on the "Free Dinner & Drink.” 🤨 Are your eyebrows raising here? This restaurant would be flagged for audit by the Sales Tax authorities for not collecting tax on the food and drinks.

What is our recommendation? Humanitix strongly encourages event hosts to utilize the Add-On Sales feature to list a sales price, select a tax category and collect sales tax seamlessly through our platform.

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions


📍 Time and Location of the Event

Sales tax is collected at the time the order is purchased by the buyer. The tax rules and rates are determined by the zip code of the event location. States may grant local governments the authority to impose additional sales taxes. Some states may collect sales tax on behalf of several cities, counties, and special districts. These jurisdictions are referred to as "state-collected".

Florida-Man holds 'Freedom' Events (tax-free!)

Florida waived sales tax on some live events held between May 29 - September 4, 2023. This ‘Freedom Summer Sales Tax Holiday’ also waived sales tax on Inflatable chairs, Binoculars and Pool & spa chemicals. Let’s see what Florida man does with this arsenal….

If event settings are changed between the time when you publish your event and when your event takes place, the tax rates may also change.

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions


🏬 What is a Marketplace Facilitator?

A Marketplace Facilitator is defined as a marketplace that contracts with third-party sellers (event hosts) to promote their sale of physical property (merch), digital goods (webinars), and services (event tickets) through the marketplace. Sound familiar? Humanitix USA Limited is deemed to be a marketplace facilitator for sales facilitated through the www.humanitix.com marketplace in states where Humanitix is required to collect & remit sales tax.

As the marketplace facilitator, Humanitix may now be responsible for calculating, collecting, remitting, and refunding “state-collected sales tax." In certain states, local taxes and excise taxes are NOT included within Marketplace Facilitator Legislation or they are NOT “state-collected”; Humanitix is not responsible for those taxes.

Humanitix partners with TaxJar to determine if we meet the state’s criteria for when an online marketplace becomes a “marketplace facilitator” and when that marketplace is required to collect sales tax on behalf of event hosts (sellers) who use the platform. If this is the case, Humanitix will remit sales tax under our 'Humanitix USA Limited' sales tax account. These sales will be reported as sales by a Marketplace Seller within the Humanitix Marketplace. Humanitix can NOT access YOUR state sales tax account. Marketplace Sellers (Event Hosts) are responsible for their own Sales & Use Tax Accounts, if any.

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions


📫 Who Sends Taxes to the Tax Authority?

It depends. If Humanitix is required to collect state sales tax on behalf of the event hosts, then we will also remit sales tax and file a Sales Tax Return. If Humanitix is Not Required to Collect Sales Tax, we will not remit the sales tax to the state. And remember, “State-Collected” Sales Tax and Custom Tax are different!

🧾 Sales Tax - Only if Humanitix is Required to Collect Sales Tax in your state will Humanitix remit sales tax collected on your behalf as the Marketplace Facilitator. If so, the sales tax will not be included in your payout.

🎟️ Custom Tax - The event host is always responsible to remit custom tax, if any, to state or local tax authorities. The custom tax will be included in your payout.

See Help Centre Topic Calculate taxes to learn more.

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions


🧩 States where Humanitix is Required to Collect & Remit Sales Tax

Humanitix partners with TaxJar to determine if we meet the state’s criteria for when an online marketplace becomes a “marketplace facilitator” and when Humanitix is required to collect Sales Tax on behalf of event hosts (sellers) who use the platform.

This is for “State-Collected” Sales Tax only. Your specific event may be subject to excise, local or other legislated taxes outside of “state-collected” sales tax. See 🎟️ Custom Tax for more tax options.

If your event takes place in one of the following states, Humanitix will automatically calculate State-Collected Sales Tax only. Click on your state for more information :

These factors can change between the time you publish your event and when your event takes place. Tax is charged on the date the ticket is sold. The tax calculated on your attendees' orders may change.

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions.


☎️ Help! If Humanitix can not give me tax advice, who can?

If you don’t have a trusted tax advisor to call, we highly recommend contacting your State Sales Tax Division. Follow this link to find your State Contact Information

Who can help me Determine if this is Taxable or Not? Contact your state to request verbal tax rulings, tax determination letters, and other guidance around the taxability of services and items for sale.

Looking to talk with a Human? How to Talk to a Human about Sales Tax in Every State - TaxJar

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions


FAQs

As an event host, am I still responsible for collecting and remitting sales and use taxes on sales not made on the Humanitix platform?

Yes. Any sales completed by an event host outside of the Humanitix website must be reported by the event host to their Tax Authority (State or Local level Tax Agencies). The event host is responsible for assessing tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. We recommend that event hosts call their local Tax Authority if they have questions.

As an event host, do I need to provide documentation if my specific event is exempt from sales and use tax?

Yes. The event host must obtain accurate and complete information about sales tax exemptions from their Tax Authority (State or Local level Tax Agencies). The event host can either make a formal request to their Tax Authority for a "Written Determination for Sales and Use Tax," or they can informally contact their Tax Authority by phone for a "Verbal Determination for Sales and Use Tax" for their specific event. The event host must provide Humanitix documentation if their event is determined to be exempt from sales tax. Humanitix cannot give tax advice. We recommend that event hosts call their local Tax Authority if they have questions.

As an event host, if my event takes place in states where Humanitix is required to collect & remit sales tax, do I still need to register for Sales & Use Tax and file a Sales & Use Tax Return?

It depends. Humanitix is the Marketplace Facilitator. The Event Host is the Marketplace Seller. Some states require for Marketplace Sellers to remain registered for Sales & Use Tax and to file a zero dollar Sales & Use Tax Return. Other states require for Marketplace Sellers to close their Sales & Use Tax account. Find your state in the list of states above, then, click on the State's hyperlink to learn more.

And remember, The event host is always responsible to remit Custom Tax, if any, to state or local tax authorities.

Event hosts are responsible for all compliance and tax obligations in areas where the event occurs. Humanitix cannot give tax advice. Please consult a tax professional. This is general guidance and is not legal advice. Nothing in this Help Centre overrides an individual state’s laws. For specific state guidance, please contact the state tax authority.

If my event takes place in states where Humanitix is required to collect & remit sales tax, will Humanitix file and remit sales tax under my organization's registered name and sales tax account?

No. Humanitix is the Marketplace Facilitator and will remit sales tax under our 'Humanitix USA Limited' sales tax account. These sales will be reported as sales by a Marketplace Seller within the Humanitix Marketplace. Humanitix can NOT access YOUR state sales tax account. Marketplace Sellers (Event Hosts) are responsible for their own Sales & Use Tax Accounts, if any.

Event hosts are responsible for all compliance and tax obligations in areas where the event occurs. Humanitix cannot give tax advice. Please consult a tax professional. This is general guidance and is not legal advice. Nothing in this Help Centre overrides an individual state’s laws. For specific state guidance, please contact the state tax authority.


More coming soon….

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