TECHNICAL ADVICE MEMORANDUM
Subject: Gross Receipts Tax on Boxing Matches/
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
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.
Last modified on: 10/31/07 03:36:06 PM.