§ 105-40. Amusements - Certain exhibitions, performances, and entertainments exempt from tax. - North Carolina Statutes

§ 105‑40.  Amusements – Certainexhibitions, performances, and entertainments exempt from tax.

The following forms ofamusement are exempt from the taxes imposed under this Article:

(1)        All exhibitions,performances, and entertainments, except as in this Article expressly mentionedas not exempt, produced by local talent exclusively, for the benefit ofreligious, charitable, benevolent or educational purposes, as long as nocompensation is paid to the local talent.

(2)        The North CarolinaSymphony Society, Incorporated, as specified in G.S. 140‑10.1.

(3)        All exhibits, shows,attractions, and amusements operated by a society or association organizedunder the provisions of Chapter 106 of the General Statutes where the societyor association has obtained a permit from the Secretary to operate without thepayment of taxes under this Article.

(4)        All outdoorhistorical dramas, as specified in Article 19C of Chapter 143 of the GeneralStatutes.

(5)        All elementary andsecondary school athletic contests, dances, and other amusements.

(6)        The first onethousand dollars ($1,000) of gross receipts derived from dances and otheramusements actually promoted and managed by civic organizations when the entireproceeds of the dances or other amusements are used exclusively for civic andcharitable purposes of the organizations and not to defray the expenses of theorganization conducting the dance or amusement. The mere sponsorship of a danceor another amusement by a civic or fraternal organization does not exempt thedance or other amusement, because the exemption applies only when the dance oramusement is actually managed and conducted by the civic or fraternalorganization.

(6a)      A youth athleticcontest with an admissions price that does not exceed ten dollars ($10.00) sponsoredby a person exempt from income tax under Article 4 of this Chapter. For thepurpose of this subdivision, a youth athletic contest means a contest in whicheach participating athlete is less than 20 years of age.

(7)        All dances, motionpicture shows, and other amusements promoted and managed by a qualifyingcorporation that operates a center for the performing and visual arts if thedance or other amusement is held at the center. "Qualifyingcorporation" means a corporation that is exempt from income tax under G.S.105‑130.11(a)(3). "Center for the performing and visual arts"means a facility, having a fixed location, that provides space for dramaticperformances, studios, classrooms, and similar accommodations to organized artsgroups and individual artists. This exemption does not apply to athleticevents.

(7a)      All exhibitions,performances, and entertainments promoted and managed by "a nonprofit artsorganization." This exemption does not apply to athletic events. A"nonprofit arts organization" is an organization that meets both ofthe following requirements:

a.         It is exempt fromincome tax under G.S. 105‑130.11(a)(3).

b.         Its primary purposeis to create, produce, present, or support music, dance, theatre, literature,or visual arts.

(8)        A person that isexempt from income tax under Article 4 of this Chapter and is engaged in thebusiness of operating a teen center. A "teen center" is a fixedfacility whose primary purpose is to provide recreational activities, dramaticperformances, dances, and other amusements exclusively for teenagers.

(9)        All entertainmentsor amusements offered or given on the Cherokee Indian reservation when theperson giving, offering, or managing the entertainment or amusement isauthorized to do business on the reservation and pays the tribal gross receiptslevy to the tribal council.

(10)      Arts festivals heldby a person that is exempt from income tax under Article 4 of this Chapter andthat meets the following conditions:

a.         The person holds nomore than two arts festivals during a calendar year.

b.         Each of the person'sarts festivals last no more than seven consecutive days.

c.         The arts festivalsare held outdoors on public property and involve a variety of exhibitions,entertainments, and activities.

(11)      Community festivals heldby a person who is exempt from income tax under Article 4 of this Chapter andthat meets all of the following conditions:

a.         The person holds nomore than one community festival during a calendar year.

b.         The communityfestival lasts no more than seven consecutive days.

c.         The communityfestival involves a variety of exhibitions, entertainments, and activities, themajority of which are held outdoors and are open to the public.

(12)      All farm‑relatedexhibitions, shows, attractions, or amusements offered on land used for bonafide farm purposes as defined in G.S. 153A‑340.  (1939, c. 158, s. 108; 1998‑95,ss. 5.1, 6; 1998‑96, s. 2; 1999‑337, s. 15(b); 2000‑140, s.61; 2004‑84, s. 1; 2006‑216, s. 1; 2007‑527, ss. 2, 3(a),(b); 2009‑550, s. 5.1.)