Growth Group | Accounting for Musicians

Charge Your Fans Tax for Concert Tickets Says North Carolina

Supporting live performances will be a bit more expensive for North Carolina music fans beginning January 1, 2014. As the musician, artist, and/or venue selling tickets to a concert or other event,  you must begin collecting the North Carolina sales taxes for the admission price (this even includes cover charges).

Musician taxes affected by new NC tax

For example, let’s say you have a gig scheduled for March 15, where you are charging fans a cover of $10. North Carolina requires you add between 67-75 cents per ticket, then send it to them. It would look something like this:

Cover Charge: $10
NC Sales Tax (6.75%): $.68
Total Ticket Price: $10.68

Similarly, many other states, require this tax on ticket sales and cover charges. As you can see, musician taxes involve more than just your annual income tax return. Other items independent musicians should be aware of is that you must charge sales tax on CDs and merchandise, such as t-shirts, stickers, and even panties! (Hear about “Uke Can’t Touch This Panties” on The Circus Life Podcast)

Are musician taxes going up?

No, while musicians will have the headache of collecting the tax and filing the tax return if they are the person selling the ticket, the fans are the ones who will be required to cough up the extra pocket change. However, if the venue, box offices, or club in North Carolina are selling the ticket or collecting the cover charge, they would be charging the fan for the tax.

Do you think these new taxes on admissions will affect your music ticket sales?