LAC 61:I.4413 — Admissions to Entertainment Furnished by Certain Domestic Nonprofit Corporations

A. R.S. 47:305.13 grants a limited exemption to organizations created under the laws of the state of Louisiana as nonprofit, charitable, educational, or religious organizations from state and local sales or use tax on the sale of admissions to entertainment events. Such sales of admissions are exempt only when the entire proceeds, with the exception of necessary expenses connected with the event, are used for the purpose for which the organization was formed. The requirement that the entire proceeds from the sales of tickets, except for necessary expenses, must be used for the purpose for which the organization was formed eliminates from exempt status any event where payment has been made to a promoter or promotional firm for engaging the services of persons not directly connected with the sponsoring organization.
B. Only sales of admissions made by recognized domestic nonprofit, charitable, educational, or religious organizations are exempt under this Section. In order to meet the nonprofit requirement, an organization or corporation must have no provision for making of dividends or payments of any profits to any organizers or stockholders and none of the income may inure to the benefit of any private shareholder or individual. In order to qualify as a charitable organization, it must freely and voluntarily minister to the physical needs of those unable to help themselves, or promote the welfare of mankind at large, or of a community, or of some class from a part of a community, or be one which would not deny assistance to persons unable to pay even though it may charge for assistance to those who are able to pay. An educational institution is construed to mean a school, seminary, college, or other institution having an instructional staff and a curriculum designed to cultivate the mental, moral, religious, or physical facilities of those whom it seeks to educate.