Running, biking and athletic racing events are no longer retail sales

Effective January 1, 2016: Race organizers don’t need to collect retail sales tax on fees charged to participate in running, biking, and racing events.

The race organizer is subject to the B&O tax under the Service and Other Activities classification on the participation fees it receives for such events, unless a specific B&O tax exemption applies. Retail sales tax is due for all registration fees for races that took place prior to January 1, 2016.

Refund requests

Retail sales tax collected in error on registration fees must either be refunded to the participants or paid to the department. Retail sales tax is considered trust fund dollars collected on behalf of the state. Organizers may not keep the collected taxes.

Race organizers that have paid the retail sales tax to the Department may still choose to return the sales tax to the participants:

1. Race organizers will need to show proof that the sales tax was refunded to the participants.
2. Race organizers may request a refund from the department. Information on how to apply for a retail sales tax refund is found here.
    

T-shirts and other items sold at these events

T-shirts, hats, bags, and other goods sold at the event by the race organizer or other vendors are subject to retail sales tax. The seller also owes the B&O tax (under the Retailing classification) on the gross sales proceeds.