Directive  Directive 08-8: Collection of Convention Center Surcharge on Resold Tour Tickets

Date:	11/14/2008
Organization:	Massachusetts Department of Revenue
Referenced Sources:	Massachusetts General Laws

Sales and Use Tax

I. Introduction

The Convention Center Act provided for construction and financing of convention centers in the Commonwealth. St. 1997, c. 152. The legislation imposed a convention center financing (CCF) fee and three CCF surcharges, all effective January 1, 1998. See TIR 05-1 for detailed rules. This Directive supplements TIR 05-1 by providing additional guidance concerning the 5% CCF surcharge on the purchase price of a ticket for any water-based sightseeing, tourist venue or entertainment cruise or tour, and for any land-based sightseeing, tourist venue or trolley tour, conducted partly or entirely within Boston where the tour tickets are sold by a tour operator to a third party who will resell the tickets as part of a tour package.
 

II. Directive
 

Issue: What are the responsibilities of both a tour operator and a reseller of tour tickets subject to the 5% CCF surcharge?
 

Directive: TIR 05-1 provides that the operator of a tour or cruise responsible for collecting and remitting the 5% CCF includes any tour broker, cruise broker, travel agent or travel packager who issues a tour or cruise ticket. Where tour or cruise tickets are sold by an operator to a third party tour broker, cruise broker, travel agent or travel packager for resale, the operator must collect and remit the 5% CCF on the full wholesale sales price of the ticket and the tour broker or similar entity must collect and remit the 5% CCF on the full retail sales price of the ticket. The tour broker or similar entity, which purchased the tickets for resale, may claim a credit on form CCF-ST for the 5% CCF paid to the operator on the wholesale price of the ticket. Although the credit may not exceed the amount of the CCF surcharge due on the return, unused credit may be carried forward to future quarterly returns. [1]
 

III. Filing Requirements
 

The 5% CCF surcharge imposed by St. 1997, c. 152, § 9(d) must be collected and paid by the operator of any tour or cruise and remitted to the Department on a quarterly basis on Form CCF-ST. St. 1999, c. 68, § 13, amending G.L. c. 62C, adding new § 86(a). The return is due on or before the 20th day of the month following the close of each calendar quarter. This Directive applies to tickets sold on or after January 1, 2009. [2]
 

/s/Navjeet K. Bal
Navjeet K. Bal
Commissioner of Revenue
 

NKB:MTF:ecl
 

November 14, 2008
 

DD 08-8

[1] In the unlikely event that the taxpayer will not be filing future returns, the taxpayer must request a refund by filing Form CA-6.

[2]This Directive is prospective. For prior open periods, the Department will not make audit assessments where the 5% CCF surcharge was remitted on the final sales price of tickets to the retail customer, regardless of whether the operator or the reseller remitted the CCF surcharge to the Department.