Indiana Supports Final Four with Tax Exemptions
- Jan 15, 2015 | Gail Cole
Update 9.28.2015: Commissioner's Directive #54 has been revised.
The NCAA Final Four is an exciting time for a lot of people, and not just basketball fans. The Division 1 Men’s Basketball Championship, which in 2015 will be held on April 4 and 6 at the Lucas Oil Stadium in Indianapolis, Indiana, is big business, often generating “tens of millions of dollars in economic impact for host cities.” For the 2014 games in Texas, for example, economic impact projections predicted out-of-state visitors would spend approximately $276 million, regionwide.
Competition to host the games is understandably fierce, and tax incentives play a major role.
The Indiana Department of Revenue, therefore, has issued “guidance to the NCAA and retail merchants concerning tax exemptions granted to the NCAA and its affiliates during a Final Four Event that takes place in Indiana.”
Sales and use tax exemptions:
- Tangible personal property and taxable services are exempt from Indiana sales and use tax when purchased “directly by the NCAA or any of its Affiliates in connection with the Final Four Event in Indiana, resulting from holding a Final Four Event in Indiana or resulting from making preparatory advance visits to Indiana for a Final Four Event.”
- “Sales made by the NCAA and its Affiliates in connection with the Final Four Event in Indiana, resulting from holding a Final Four Event in Indiana or resulting from making preparatory advance visits to Indiana for a Final Four Event are exempt from sales and use tax.”
In order to claim the exemption from sales tax (for sales made by the NCAA and Affiliates), the NCAA and Affiliates must file monthly sales tax returns with the Indiana Department of Revenue. While it is not necessary for the NCAA or Affiliates to register with the department to claim the exemption from sales and use tax, registration with the department is required to file sales tax returns “to the extent it has gross receipts subject to tax.”
Where appropriate, the NCAA and Affiliates may apply for a refund of excise taxes (such as gasoline or motor fuel tax and innkeeper’s tax) “to the extent that such purchases and sales are exempt from sales and use tax.”
Additional information, including examples, is available on Commissioner’s Directive #54.
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