You owe tax on amusements if:
You are operating an amusement business within the city.
Examples of taxable amusement activities include, but are not limited to:Exhibitions, movies, operas, and theaters
Concerts, carnivals, circuses
Bowling, billiards, skating
Golf, tennis, batting/driving ranges
Coin-operated amusement machines
Any business charging admission for exhibition and entertainment
Tax rate on amusements
The city tax rate for amusements within Mesa is 1.75% of the gross income.
(Note: The Mesa City Tax rate increased to 1.75% effective 07/01/2006)
Collection of tax
You may choose to charge the tax separately on each sale, or include
Transaction Privilege Tax in your price. If you over charge any tax to your
customers, you must remit the excess tax to the city.
If you include tax in your price, you can use factoring to "back into" the
tax included in your gross sales.
A. Coin-operated amusement machines
Gross income from electronic games, pinball, and other coin-operated
machines is taxable. No deduction from gross income is allowed for
commissions or equipment rental cost. The person responsible for paying the
tax is the one who has direct control over the funds generated by the
machines. Commissions received for the placement of these machines is
taxable as licensing for use of real property.
Gross income from the sale of programs and souvenirs is taxable as retail
C. Federally exempt organizations and proprietary clubs
Amusement activities directly conducted by these organizations are generally
exempt from tax. Amusement activities which are conducted on behalf of these
organizations by outside franchisees and concessionaires are not exempt from
D. Private clubs
Fees for recreational facilities open to the public, such as golf courses,
swimming pools, and tennis courts, are taxable.
E. Balloon rides, bus/jeep tours, rafting, hay rides
These activities are taxable if the origination point is in the City of