Ticketmaster is the largest primary ticketing company in the United States, selling tickets for concerts, sporting events, theater shows, and more. When purchasing tickets on Ticketmaster, customers will notice various fees and charges added to the base ticket price. One common question is whether Ticketmaster charges taxes on ticket purchases. The short answer is that Ticketmaster does charge taxes on tickets, but the specific taxes charged depend on the event location and ticket price. Ticketmaster collects taxes on behalf of state and local governments and remits those taxes back to the appropriate taxing authorities.
Taxes Charged by Ticketmaster
Ticketmaster charges a variety of different taxes that are added to the final checkout price. The most common taxes charged include:
Sales Tax
General sales tax is charged on ticket purchases in most states that have a sales tax. Sales tax rates vary by state and local jurisdiction. For example, the sales tax rate in New York City is 8.875% while the sales tax rate in Los Angeles is 9.5%. Ticketmaster will charge the applicable sales tax rate based on where the event is being held.
Amusement Tax
Many cities and counties impose an amusement tax on ticketed events happening in their jurisdiction. Amusement taxes are typically a percentage of the ticket price. For example, the amusement tax rate in Nashville is 5% while the rate in Houston is 10%. Amusement tax rates can sometimes vary based on the venue or type of event. Ticketmaster will collect any required amusement taxes.
Facility Fees
Facility fees are charges added to tickets to help pay for the upkeep and maintenance of the venue. While not technically a tax, facility fees are mandatory charges imposed by the venue. Some facility fees are flat amounts per ticket while others are a percentage of the ticket price. Facility fee rates depend on the specific venue policies.
Service Fees
In addition to taxes, Ticketmaster also charges service fees and order processing fees. These fees are how Ticketmaster generates revenue and are not considered taxes. Service fees are typically a percentage of the ticket price, such as 25% of the total ticket cost. Order processing fees are flat amounts added to each ticket transaction.
Why Ticketmaster Charges Taxes
There are a few key reasons why Ticketmaster is responsible for collecting taxes on ticket sales:
Legal Requirement
As the primary seller of tickets, Ticketmaster is legally required to calculate, collect, and remit any applicable taxes just like other retailers. These taxes are imposed by state and local governments on ticket sales occurring in their jurisdictions. Ticketmaster acts as a tax collector on behalf of those governments. Failure to properly collect and remit taxes could result in penalties for Ticketmaster.
Complex Tax Laws
Sales tax laws can be extremely complex with different rates across thousands of taxing jurisdictions. By serving as the centralized tax collector, Ticketmaster simplifies the process and ensures taxes are handled properly. This avoids venues having to take on the burden of tax compliance.
Upfront Collection
It is most efficient for Ticketmaster to collect taxes upfront at the time of purchase rather than trying to remit taxes later. By building tax collection into the initial ticket pricing, it avoids issues with retroactive collections. This results in a smoother process for customers.
Factors Affecting Taxes Charged
The specific taxes and rates charged by Ticketmaster on a ticket order will depend on several factors:
Event Location
As noted above, sales tax and amusement tax rates vary widely across different states, counties, and cities where events take place. A concert in Miami will have different tax rates compared to a concert in Seattle. The location of the event venue determines the applicable taxes.
Ticket Price
Most taxes are percentages of the ticket price. Therefore, more expensive tickets generally incur higher total taxes. Percentage-based taxes will scale up or down based on the per-ticket price. Exceptions are flat taxes like order processing fees which stay constant.
Tax Exemptions
Certain ticket buyers may qualify for tax exemptions that waive or lower the amount of taxes charged. Common exemptions include for resale tickets, non-profit events, and government purchases. Ticketmaster will adjust taxes if valid tax exemption documentation is provided.
Fees
Service fees and processing fees add to the ticket price that percentage-based taxes are calculated on. Higher fees increase the taxable ticket value. However, fees themselves are not considered taxes.
Venue Policies
The event venue determines requirements like facility fees and other venue-specific charges. Venues also set policies around tax collections which Ticketmaster must follow. This can occasionally affect taxes.
Estimated Taxes on Sample Ticketmaster Orders
To illustrate how taxes are applied to Ticketmaster orders, here are estimated taxes on sample ticket purchases:
Concert in Nashville, TN
– Base Ticket Price: $50
– Fees: $12.50 (25% service fee)
– Taxable Ticket Value: $62.50
– Sales Tax (9.25%): $5.78
– Amusement Tax (5%): $3.13
– Estimated Total Taxes: $8.91
Basketball Game in Los Angeles, CA
– Base Ticket Price: $100
– Fees: $25 (25% service fee)
– Taxable Ticket Value: $125
– Sales Tax (9.5%): $11.88
– Facility Fee (flat): $5
– Estimated Total Taxes: $16.88
Theater Show in Houston, TX
– Base Ticket Price: $75
– Fees: $15 (20% service fee)
– Taxable Ticket Price: $90
– Sales Tax (8.25%): $7.43
– Amusement Tax (10%): $9
– Estimated Total Taxes: $16.43
As shown above, the taxes on a Ticketmaster order can add substantial cost to the ticket price. Taxes alone can make up 15-25% extra on top of the fees and base price. Customers should factor these taxes in when budgeting for ticket purchases.
Avoiding High Ticketmaster Taxes
While most Ticketmaster taxes are mandatory, customers can employ some strategies to minimize taxes and fees:
Strategy | Description |
---|---|
Buy from the box office | Tickets purchased directly from the event venue may have lower fees and taxes. |
Consider resale tickets | Resale marketplaces like StubHub may include lower service fees compared to Ticketmaster. |
Purchase season ticket packages | Buying season tickets for multiple events may offer bundled pricing discounts. |
Join fan clubs | Artist fan clubs sometimes offer pre-sales and exclusive ticket deals. |
Check for tax exemptions | See if you qualify for any tax waivers when purchasing tickets. |
However, completely avoiding Ticketmaster taxes is very difficult for most major events. Ticketmaster dominates as the primary ticketing platform that entertainment venues use. Fans generally want to purchase tickets through Ticketmaster to ensure legitimate event access. This results in effectively mandatory Ticketmaster taxes and fees in most cases.
Current Rates of Ticketmaster Taxes and Fees
Ticketmaster does not publicly provide exact details on their variable taxes and fees. However, based on consumer reports, here are typical rates charged:
Charge Type | Typical Rates |
---|---|
Sales Tax | 0% to 11% depending on location |
Amusement Tax | 3% to 15% depending on location |
Facility Fees | $5 to $30 per ticket |
Service Fees | 25% to 35% of ticket price |
Order Processing Fees | $5 to $20 per order |
As shown above, when factoring taxes, facility fees, and service fees, a Ticketmaster order can end up 40% to 60% more than the initial ticket face value. Taxes make up 10% to 25% of that total upcharge amount.
Future Outlook for Ticketmaster Taxes
It is likely that Ticketmaster taxes will continue to rise in the future. Key factors include:
Higher Ticket Prices
As the base price of tickets increases for high-demand shows and events, the taxes as a percentage of prices will also climb. Percentage taxes scale up with ticket prices.
New Tax Laws
More cities and states may enact amusement taxes on major events as a way to raise government revenue. New tax laws could expand the types of taxes placed on ticket sales.
Venue Fee Increases
Venues themselves may raise facility fees and other mandatory venue charges as their operating expenses increase over time. These costs get passed onto customers through Ticketmaster.
Service Fee Creep
Ticketmaster may continue gradually increasing service fees over time as a profit driver. Higher fees increase the base for percentage-based taxes.
Without regulatory intervention or fan pushback, Ticketmaster will likely continue adding to various taxes and fees, making tickets increasingly expensive for customers. Fans have overwhelmingly opposed the company’s pricing practices through lawsuits and criticism. But the convenience and ubiquity of the Ticketmaster platform persists for the foreseeable future.
Conclusion
In summary, Ticketmaster does charge a variety of taxes on ticket orders. Sales tax, amusement tax, facility fees, and service fees all contribute to notably higher final ticket prices compared to just the face value. Taxes rates vary based on the event location and ticket cost. Overall, taxes can add 15% to 25% on top of Ticketmaster fees. Customers should account for these taxes when budgeting for events. While some fan pushback exists, Ticketmaster’s dominant positioning makes avoiding their taxes impractical in most cases. As base ticket prices and fees rise, Ticketmaster taxes will likely continue growing as an added burden for fans in the future.