Technical Advice Memorandum


Subject: Gross Receipts Tax on Boxing Matches/
              Clarification of Existing Policy
Schedule: Privilege License Taxes - Article 2, Schedule 5
Statute: N.C.G.S. 105-37.1
Issued By: Corporate, Excise, and Insurance Tax Division
Date: March 4, 1997
Reference: CTAM 97-6

This is to clarify the existing policy of the Department of Revenue regarding the payment of State gross receipts taxes on boxing matches and other events regulated by the North Carolina State Boxing Commission.

Gross receipts tax is a type of State Privilege License, levied under G.S. 105-37.1 of the Revenue Laws of North Carolina. The gross receipts tax is required of every person, firm, or corporation engaged in the business of giving, offering or managing any form of entertainment or amusement not otherwise taxed or specifically exempted in this Article, for which an admission is charged. There is an annual license fee of $50.00 for each location where such activities are held. In addition to the annual license, there is an additional tax levied upon the gross receipts of such business at the rate of 3%. The annual license is treated as an advance payment of the tax upon the gross receipts and is applied as credit against the gross receipts tax until it is absorbed for the license year for which it was issued. The $50.00 license should be applied for on Form B-202A before commencing business and is renewable annually by July 1. The gross receipts tax report, Form B-205, must be filed with the Secretary of Revenue, with remittance, within the first 10 days of each month covering all such gross receipts for the previous month.

It is, therefore, the Department's position that any boxing match or other event regulated by the North Carolina Boxing Commission is subject to the license and 3% gross receipts tax on admission charges in accordance with G.S. 105-37.1.