"Katie" <katiej_1...[at]yahoo.com> wrote:
- quote -

I found a person in the tax office that knew. It was as you
suggested: The parties are considered a non-taxable service
and since the party favors are included in the cost of the
party, no sales tax is charged. I do have to pay use tax on
the merchandise. Thanks for your reply,

Katie.

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jsc...[at]yahoo.com wrote:

- quote -

I take it these parties are not conducted on your own
premises; if they were, I should think the party itself
would be subject to sales tax under La. Rev. Stat. Ann.
=A7 47:301(14)(b)(i), which imposes sales tax on
"admissions" to "places of amusement." I don't see any
annotations on this subject, but it appears that at least
the "cover charge" at a place like Chuck E. Cheese, for
example, would be subject to tax.

However, if you are not subject to sales tax on the amount
charged for the party itself, then you are probably the
consumer of the party favors. You would pay sales or use
tax when you purchase those items, and would not charge
sales tax to your customer.

Katie in San Diego

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We are opening a business that offers birthday parties for
children. I know in Louisiana, we don't have to charge
sales tax on the birthday party itself. But we do give the
children party favors. I'm trying to find out if I have to
pay sales tax. And if so, is it on the whole price of the
party, or just on the value of the merchandise? I called
our parish (county) tax office and they had no idea!

Thanks!

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