Tuesday, August 09, 2005

Tax Included!

In case you didn't catch it in the comments, I got some great feedback regarding the question of whether sales tax is indeed included in the price of movie tickets. This would have been out earlier, except I have been pretty slow about checking my emal, lately :)

Here's what my well-informed anonymous contributor says:
Check your local sales tax regulations. You might be surprised to learn that theaters do, indeed, pay sales tax even if they do not appear to charge it.

For example, in the state of Florida, theaters pay sales tax on ticket sales. However, most theaters still show a price with an amount divisible by $0.25 and do not display any additional sales tax charges on the customer's receipt. A matinee price of $6.00 means the theater gets $5.63 and the state gets $0.37 (at the sales tax rate of 6.5% in my area).
So there you have it. Thank you anonymous contributor! I hope you come back often!


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