CHAPTER 33-FACILITIES AND SERVICES

SUBCHAPTER A. Admissions and dues.
SUBCHAPTER B. Communications.

SUBCHAPTER C. Transportation of persons.
SUBCHAPTER D. Safe deposit boxes.

SUBCHAPTER E. Special provisions applicable to services and
facilities taxes.

Subchapter A-Admissions and Dues

Part I. Admissions.

Part II. Club dues.

PART I-ADMISSIONS

Sec. 4231. Imposition of tax.

Sec. 4232. Definitions.

Sec. 4233. Exemptions.

Sec. 4234. Printing of price on ticket.

SEC. 4231. IMPOSITION OF TAX.

There is hereby imposed:

(1) GENERAL.

(A) SINGLE ADMISSION. major fraction thereof of the amount in excess of $1 paid for admission to any place.

A tax of 1 cent for each 10 cents or

(B) SEASON TICKET.-In the case of a season ticket or subscription for admission to any place, a tax of 1 cent for each 10 cents or major fraction thereof of the amount paid for such season ticket or subscription which is in excess of $1 multiplied by the number of admissions provided by such season ticket or subscription.

(C) BY WHOM PAID. The taxes imposed under subparagraphs (A) and (B) shall be paid by the person paying for the admission. (2) CERTAIN RACE TRACKS.-In lieu of the tax imposed under paragraph (1), a tax of 1 cent for each 5 cents or major fraction thereof of the amount paid for admission to any place (including admission by season ticket or subscription) if the principal amusement or recreation offered with respect to such admission is horse or dog racing at a racetrack. The tax imposed under this paragraph shall be paid by the person paying for such admission.

(3) PERMANENT USE OR LEASE OF BOXES OR SEATS.-In the case of persons having the permanent use of boxes or seats in an opera house or any place of amusement or a lease for the use of such box or seat in such opera house or place of amusement (in lieu of the tax imposed under paragraph (1) or (2)), a tax equivalent to 10 percent (20 percent if paragraph (2) would otherwise apply) of the amount for which a similar box or seat is sold for each performance or exhibition at which the box or seat is used or reserved by or for the lessee or holder. The tax imposed under this paragraph shall be paid by the lessee or holder.

(4) SALES OUTSIDE OF BOX OFFICE IN EXCESS OF ESTABLISHED PRICE. Upon tickets or cards of admission to theaters, operas, and other places of amusement, sold at news stands, hotels, and places other than the ticket offices of such theaters, operas, or other places of amusement, at a price in excess of the sum of the established price therefor at such ticket offices plus the amount of any tax imposed under paragraph (1) or (2), a tax equivalent to 10 percent (20 percent if paragraph (2) applies) of the amount of such excess. The tax imposed under this paragraph shall be returned and paid by the person selling such tickets.

(5) SALES BY PROPRIETORS IN EXCESS OF REGULAR PRICE.-A tax equivalent to 50 percent of the amount for which the proprietors, managers, or employees of any opera house, theater, or other place of amusement sell or dispose of tickets or cards of admission in excess of the regular or established price or charge therefor. The tax imposed under this paragraph shall be returned and paid by the persons selling such tickets.

(6) CABARETS.-A tax equivalent to 10 percent of all amounts paid for admission, refreshment, service, or merchandise, at any roof garden, cabaret, or other similar place furnishing a public performance for profit, by or for any patron or guest who is entitled to be present during any portion of such performance. The tax imposed under this paragraph shall be returned and paid by the person receiving such payments; except that if the person receiving such payments is a concessionaire, the tax imposed under this paragraph shall be paid by such concessionaire and collected from him by the proprietor of the roof garden, cabaret, or other similar place. No tax shall be applicable under paragraph (1) or (2) on account of an amount paid with respect to which tax is imposed under this paragraph.

This section shall apply with respect to amounts paid within or outside the United States, but only if the place of admission or performance is within the United States. In the case of any payment outside the United States in respect of which tax is imposed under paragraph (1), (2), or (3) of this section, such tax shall be collected by the person who is to furnish the facility or service, and if such person does not collect the tax he shall be liable for the payment of such tax.

SEC. 4232. DEFINITIONS.

(a) ADMISSION.-The term "admission" as used in this chapter includes seats and tables, reserved or otherwise, and other similar accommodations, and the charges made therefor.

(b) ROOF GARDEN, CABARET OR OTHER SIMILAR PLACE.-The term "roof garden, cabaret, or other similar place," as used in this chapter, shall include any room in any hotel, restaurant, hall, or other public place where music and dancing privileges or any other entertainment, except instrumental or mechanical music alone, are afforded the patrons in connection with the serving or selling of food, refreshment, or merchandise. In no case shall such term include any ballroom, dance hall, or other similar place where the serving or selling of food, refreshment, or merchandise is merely incidental, unless such place would be considered, without the application of the preceding sentence,

as a "roof garden, cabaret, or other similar place." Such term does not include any place if

(1) no beverage subject to tax under chapter 51 (distilled spirits, wines, and beer) is served or permitted to be consumed;

(2) only light refreshment is served;

(3) where space is provided for dancing, no charge is made for dancing; and

(4) where music is provided or permitted, such music is (A) instrumental or other music which is supplied without any charge to the owner, lessee, or operator of such place (or to any concessionaire), or (B) mechanical music.

(c) PERFORMANCE FOR PROFIT.-A performance shall be regarded as being furnished for profit for purposes of section 4231 (6) even though the charge made for admission, refreshment, service, or merchandise is not increased by reason of the furnishing of such perform

ance.

SEC. 4233. EXEMPTIONS.

(a) ALLOWANCE.-No tax shall be imposed under section 4231 in respect of:

(1) CERTAIN RELIGIOUS, EDUCATIONAL, OR CHARITABLE ENTERTAINMENTS, ETC.

(A) IN GENERAL.-Except as provided in subparagraph (C), any admissions all the proceeds of which inure exclusively to the benefit of

(i) a church or a convention or association of churches;

(ii) an educational institution described in section 501 (c) (3) which is exempt from tax under section 501 (a) or which is an educational institution of a government or political subdivision thereof, if such organization normally maintains a regular faculty and curriculum and normally has a regularly organized body of pupils or students in attendance at the place where its educational activities are regularly carried on; or a school operated as an activity of an organization described in section 501 (c) (3) which is exempt from income tax under section 501 (a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on;

(iii) a corporation or any community chest, fund, or foundation organized and operated exclusively for charitable purposes, described in section 501 (c) (3) which is exempt from tax under section 501 (a), if such corporation or organization is supported, in whole or in part, by funds contributed by the United States or any State or political subdivision thereof, or is primarily supported by contributions from the general public;

(iv) a society or organization conducted for the sole purpose of maintaining symphony orchestras or operas and receiving substantial support from voluntary contributions;

(v) an organization (organized prior to October 1, 1951) described in section 501 (c) (3) which is exempt from tax under section 501 (a) and which is operated for the purpose of conducting an annual chautauqua program of educational, cultural, and religious activities at a permanent location;

(vi) National Guard organizations, Reserve officers' associations or organizations, posts or organizations of war veterans, or auxiliary units or societies of any such posts or organizations, if such posts, organizations, units, or societies are organized in the United States or any of its possessions;

(vii) a trust or organization described in section 501 (c) (3) which is exempt from tax under section 501 (a) and which is organized and operated exclusively to provide scholarships and fellowships for study above the secondary level

if no part of the net earnings thereof inures to the benefit of any private stockholder or individual.

(B) POLICEMEN'S AND FIREMEN'S DISABILITY FUNDS.-Except as provided in subparagraph (C), any admissions all the proceeds of which inure exclusively to the benefit of a police or fire department of any city, town, village, or any muncipality or exclusively to a retirement, pension, or disability fund for the sole benefit of members of such a police or fire department or to a fund for the heirs of such members.

(C) NONEXEMPT ADMISSIONS.-The exemption provided under subparagraph (A) or (B) shall not apply in the case of admissions

to

(i) any athletic game or exhibition unless the proceeds inure exclusively to the benefit of an elementary or secondary school or unless in the case of an athletic game between teams composed of students from elementary or secondary schools, or colleges, the entire gross proceeds from such game inure to the benefit of a hospital for crippled children,

(ii) wrestling matches, prize fights, or boxing, sparring, or other pugilistic matches or exhibitions,

(iii) carnivals, rodeos (except as provided in paragraph (9)), or circuses in which any professional performer or operator participates for compensation, or

(iv) any motion picture exhibition.

Clauses (i) and (ii) shall not apply in the case of any athletic event between educational institutions held during the regular athletic season for such event, if the proceeds therefrom inure exclusively to the benefit of such institutions or to the benefit of hospitals for crippled children, or both.

(2) AGRICULTURAL FAIRS.-Any admissions to agricultural fairs if no part of the net earnings thereof inures to the benefit of any stockholders or members of the association conducting the sameif the proceeds therefrom are used exclusively for the improvement, maintenance, and operation of such agricultural fairs.

(3) CERTAIN MUSICAL OR DRAMATIC PERFORMANCES. Any admissions to musical or dramatic performances conducted by a civic or community membership association if no part of the net earnings thereof inures to the benefit of any stockholders or members of such association.

(4) SWIMMING POOLS, ETC.-Any admissions to swimming pools, bathing beaches, skating rinks, or other places providing facilities for physical exercise (other than dancing).

(5) HOME AND GARDEN TOURS. Any admission to a home or garden which is temporarily opened to the general public as part of

a program conducted by a society or organization to permit the inspection of historical homes and gardens-if no part of the net earnings thereof inures to the benefit of any private stockholder or individual.

(6) HISTORIC SITES, MUSEUMS, AND PLANETARIUMS. Any admission to an historic site, house, or shrine, to a museum of history, art, or science, to a planetarium, or to any exhibition in connection with any of the foregoing, operated

(A) by any State or political subdivision thereof or by the United States or any agency or instrumentality thereof-if the proceeds therefrom inure exclusively to the benefit of the State, political subdivision, United States, agency, or instrumentality, or (B) by any society or organization not organized for profitif no part of the net earnings thereof inures to the benefit of any private stockholder or individual.

(7) CERTAIN AMATEUR THEATER PERFORMANCES.-Any admission to an amateur performance presented and performed by a civic or community theater group or organization-if no part of the net earnings thereof inures to the benefit of any private stockholder or individual.

(8) CERTAIN AMATEUR AND SEMIPROFESSIONAL BASEBALL GAMES.Any admission to a baseball game, if all the players who participate therein have an amateur or semiprofessional standing, and if (A) such game is not primarily conducted for profit, (B) neither team participating in such game is regularly engaged in playing baseball for its own profit, and (C) no part of the net earnings thereof inures to the benefit of any private stockholder or individual.

(9) CERTAIN RODEOS AND PAGEANTS. Any admission to a rodeo or an historical pageant, if the proceeds therefrom are used exclusively for the improvement, maintenance, and operation of such rodeo or pageant, and if no part of the net earnings thereof inures to the benefit of any private stockholder or individual.

(10) ATHLETIC EVENTS FOR BENEFIT OF UNITED STATES OLYMPIC ASSOCIATION. Any admissions to an athletic event, if (A) such event is conducted by the United States Olympic Association, or the conduct of such event for the benefit of such association is authorized in advance by such association, and (B) all the proceeds of the admissions inure exclusively to the benefit of such association. (11) ATHLETIC GAMES FOR BENEFIT OF RETARDED CHILDREN.-Any admissions to an athletic game between teams composed of students from elementary or secondary schools, or colleges, if the proceeds from such game inure exclusively to the benefit of an organization described in section 501 (c) (3) which is exempt from tax under section 501 (a) and which is operated exclusively for the purpose of aiding and advancing retarded children. In determining whether a team participating in an athletic game is composed of students from elementary or secondary schools or colleges for purposes of this paragraph or paragraph (1) (C) (i), an individual who is a member of such team shall be considered a student from an elementary or secondary school or a college if he was a student of such school or college at any time during the 8-month period ending on the date of the athletic game.