Amusement - Fair operators and concessionaires

When a fair enters into a percentage basis contract with concessionaires for the privilege of conducting exhibitions, games, or entertainment, the concessionaire is responsible for payment of tax on gross receipts. Sale of tickets for activities operated during the fair and entirely controlled by a state, county, district, or local fair board are not subject to sales tax. All concessionaires operating under licensed carnivals, circuses, show troupes, and similar organizations are agents of the licensed operator and must report their gross receipts and sales tax to the licensed operator. The licensed operator must maintain a record of the gross receipts and tax of each concessionaire and remit the sales tax to the tax commissioner when the operator's own payments are made. The records must be available to the tax commissioner. Operators of carnivals, circuses, show troupes, and similar organizations traveling from place to place and with tangible personal property not permanently located in North Dakota must furnish security in the form of surety, cash, or negotiable bond to the tax commissioner before starting operations in the state.