Who Pays the Ticket Tax?

Abstract

Since 1971, the City of Boulder, Colorado, has imposed a tax of 5% on the price of admission to all public events, including movies, concerts, and theatrical performances. This admissions tax, or "ticket tax," is a relatively unimportant source of revenue for the city, accounting for less than 0.5% of total sales and use tax receipts in recent years. For example, in 1999 total sales and use tax receipts of the city were $76.8 million, whereas the ticket tax generated only $368,000. Nevertheless, the use of this ticket tax is consistent with the heavy use of sales taxes in Boulder. In 1999 total tax revenues from the retail sales tax, the business use tax, the construction use tax, the motor vehi-