If you’re a football fan, you probably already know that Super Bowl LII will be played on Feb. 4, 2018, at U.S. Bank Stadium in Minneapolis. But did you know that there are sales tax incentives to encourage in-person viewing of the big game? They’re a fun perk — right up there with bragging rights — though they’re unlikely to cover the cost of the ticket.
Admissions to athletic events, places of amusement, and recreational areas, are generally subject to Minnesota sales tax.
However, admissions to the Super Bowl are exempt, as are admissions to “related events … when the events are sponsored by the National Football League, its affiliates, or the Minnesota Super Bowl Host Committee.” Related events include, but are not limited to, NFL Experience, NFL House, NFL On Location, and NFL Tailgate. National Football League teams are not NFL affiliates.
The exemption to Super Bowl admissions applies no matter who sells the tickets.
Pay attention to where you park
Fans not only get a sales tax break on admissions: Nonresidential parking that’s sold by the NFL to people attending the Super Bowl or related events sponsored by the NFL, its affiliates, or the Minnesota Super Bowl Host Committee is also exempt.
However, “sales of nonresidential parking sold by anyone other than the NFL are taxable.”
Not everything associated with the Super Bowl and sold by the NFL is exempt. Purchases of concessions, lodging, and Super Bowl swag (e.g., T-shirts, hats) are taxable.
On the other hand, the Minnesota Sports Facilities Authority may reimburse the sales tax on some purchases made by the NFL or its affiliates. Additional information is available from the Minnesota Department of Revenue.
While alcohol remains taxable during the Super Bowl, it will be easier to get. At the discretion of licensing jurisdictions, alcohol service hours may be extended through 4:00 a.m. from Feb. 2 through Feb. 5, 2018. Businesses may have to pay additional licensing fees of up to $250 to extend their serving hours. For more details, see HF 1.
How much is it worth?
According to the analysis of HF 1, which created the above exemptions, the exemptions for admissions and parking are expected to reduce state sales tax by $970,000 and local sales taxes by roughly $390,000. Better be a good game.
Learn more about Minnesota sales tax here.