Organizations May Owe Privilege Tax on Paid Admissions to Events at CIAA Tournament

Date: February 20, 2013

Raleigh, N.C.— Organizations, groups and individuals offering paid admission to events such as dances, parties and concerts during the upcoming CIAA basketball tournament in Charlotte are required to collect and pay privilege tax on gross admissions to the N.C. Department of Revenue. The privilege tax rate in the state is 3 percent.

There are several exemptions to the privilege tax requirement that may apply:

  1. All exhibitions, performances, and entertainment produced by local talent exclusively for the benefit of religious, charitable, benevolent or educational purposes are exempt as long as no compensation is paid to the local talent.
  2. The first $1,000 of gross receipts derived from dances and other amusements actually promoted and managed by civic organizations is exempt when the entire proceeds of the dances or other amusements are used exclusively for civic and charitable purposes for the organizations and not to defray the expenses of the organization conducting the dance or amusement.

The gross receipts taxes on concerts and other events must be reported on Form B-205. The tax is due when a return is due. A return is due by the 10th day after the end of the month in which the events are held. 

Review detailed information on privilege taxes, including exemptions. The CIAA tournament will be held February 26-March 2 in Charlotte.

Anyone with questions should contact NCDOR at (336) 315-7005.


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