Section 38-4-004 - GROSS RECEIPTS TAX AND SALE OF TICKETS004.01 No licensee may sell, direct the sale of, or otherwise cause to be sold any ticket, except as authorized in these regulations.004.02 Each promoter conducting or holding any regulated sport event must pay to the Commissioner a gross receipts tax of five (5) percent of the total gross receipts of any event and five percent of the total gross receipts from the sale of television rights. Gross receipts excludes any other state or federal taxes.004.03 All taxes must be paid immediately after the event, unless other arrangements have been made by the Commissioner.004.04 If a regulated sport bout is held as an incidental feature at any event or entertainment of a different character, the portion of the total receipts paid to the State will be determined by the Commissioner or as may be fixed by rule. 004.04(A) For any regulated sports bout conducted as a feature at any event or entertainment, where the price of admission for such event or entertainment allows spectators to attend any or all bouts and the licensee is supplying the contestants for a set fee, the gross receipts tax of five (5) percent will be collected on the amount contracted between the licensee and the private entity.004.04(B) A copy of the contract and a notarized copy of the check for payment must be submitted to the Commissioner. In the event there is no contract, the promoter and the private entity must sign a notarized affidavit stating the amount paid to the promoter for his or her service and a notarized copy of the check for payment must be submitted to the Commissioner. The gross receipts tax of five (5) percent of the amount paid to the licensee must be paid to the Commissioner.004.05 Whenever any person, promoter, corporation, association, or other entity fails to make a report of any event at the time and in the manner prescribed by Neb. Rev. Stat. § 81-8,135 or these regulations or whenever a report is unsatisfactory to the Commissioner, the Commissioner may examine or cause to be examined the books and records of the person, promoter, corporation, association, or other entity. The Commissioner may subpoena and examine under oath, any officers or persons as witnesses for the purpose of determining the total amount of the gross receipts for any event and the amount of taxes due and the Commissioner may, upon and as a result of the examination, determine and assess the tax that is due. 004.06 In the event of a failure to pay any taxes determined to be due, together with the expenses incurred in conducting the examination, for a period of 20 days after notice to the promoter, corporation, association, or person of the amount, the delinquent promoter, corporation, association, or person will forfeit its, his, or her license and be disqualified from receiving any new license or any renewal of its, his, or her license. Additionally, it, he, or she is subject to a civil penalty of $1,000 in the case of amateur licenses or $5,000 in the case of professional licenses. Any penalty may be recovered by the Attorney General in the name of Nebraska in the same manner as other penalties are recovered by law.004.07 Every person admitted to an event must have a ticket or a pass, complimentary or otherwise. Every admission ticket, complimentary ticket, or pass must be scanned and recorded on an electronic manifest or deposited immediately by the ticket takers in a closed container, such as a ticket box, to be provided by the promoter. No ticket may be removed from the ticket boxes or otherwise disposed of until released by a Commission official.004.08 The Commissioner has complete control and supervision of the sale of tickets, ticket boxes, entrance doors, and all exits for the purpose of checking admission controls. Commission officials must be provided with all information and materials necessary for an accurate accounting, including the printer's manifest showing the total number of tickets printed and the admission prices of each, and first and last numbers of rolled tickets. Advanced tickets must be accounted for as part of the gross receipts. 004.09 The promoter must sell all tickets for the exact price printed on the ticket. No licensee may sell any ticket for an amount other than the face value, direct the sale of any ticket for an amount other than face value, or otherwise derive any revenue from the sale of any ticket sold at an amount other than the face value. The price of tickets sold at the site of an event must be displayed adjacent to all ticket sellers' tables or above the ticket sellers' window.004.10 The Commission has the authority to count the cash received from the sale of tickets if deemed necessary. The amount of the cash change fund or starting bank must be recorded. Any withdrawals from the cash receipts prior to the final accounting must be approved by the Commissioner.004.11 All tickets must have a face value of at least $ 1.00, except for complimentary tickets or tickets or passes issued to the media, Commission officials, or other necessary event staff.004.12 Complimentary tickets are not subject to the gross receipts tax. A complimentary ticket does not include any sponsorship ticket, regardless of the sponsorship ticket's face value.004.13 The number of complimentary tickets must not exceed five (5) percent of the seating capacity of the event.004.14 All complimentary tickets must be listed on a form showing the number of complimentary tickets issued and by whom the issuance was approved. The completed form must be turned over to the Commissioner with all other required reports. No licensee may sell, direct the sale of, or otherwise share in any revenue derived from the sale of any complimentary ticket.004.15 The five (5) percent gross receipts tax will be applied to the entire amount paid for any sponsorship or advertising package that includes sponsorship tickets, unless the licensee can demonstrate, to the satisfaction of the Commissioner, the actual cumulative value of all sponsorship tickets, in which case the gross receipts tax will only be applied to such actual cumulative value.004.16 A promoter must disclose to the Commissioner, in writing, the amount received for any sponsorship or advertising package that includes sponsorship tickets. Upon request, the licensee must provide signed copies of all such contracts or agreements and a notarized copy of any check received for payment.004.17 Once sponsorship tickets are provided to the person or entity purchasing advertising at or during media coverage of an event, the sponsorship tickets may not be resold. No licensee may resell, direct the resale of, or otherwise derive any revenue from the resale of any sponsorship ticket.004.18 A final accounting of ticket sales will be made in a private office or room with only Commission officials and one promoter representative present. 38 Neb. Admin. Code, ch. 4, § 004
Sections 81-8,129, 81-8,135, 81-8,136, 81-8,139, and 81-8,141, R.R.S., 2014.Amended effective 3/21/2022