I recently opened an escape room in San Diego. We have played a few games in CA and noticed that some places do charge a sale tax on the top of the ticket price. I also read that CA doesn't require sales tax on things that aren't tangible goods. I'm not sure what is the right thing to do.
I have no idea what an escape room is. However, each state has its own laws on what it charges sales on, whether products or services.....there is no commonality and is not a federal issue at all. Accordingly, you should speak to a CP tot explain the business and get an answer whether your services are subject to sales tax in all the states you are selling to customers in such states other than where you are organized. I cannot help you further other than saying your post does not provide enough facts.
My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained. Please click "helpful" or "best answer" if my answer added any value or add a "comment" if you have more info for me to help you get a better answer.
Generally, tickets are licenses and not considered sales taxable goods. Call the Board of Equalization for the specific ticket in issue. Good luck. Zaher Fallahi, Tax Attorney, CPA.
In California, sales tax is imposed on the retailer for the privilege of selling tangible personal property at retail. Tangible personal property is defined under the law as personl property which may be seen, wieghed, measured, felt, or touched, or which is in any other manner preceptible to the senses. In your fact scenario, you are renting a room (considered real property) for some period of time; accordingly it is not subject to California sales or use tax. Note well however, that the California Legislature does consider taxing entertainment and services annually so keep a watchful eye out for law changes in these areas.
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