Rev. Rul. 55-719

The Internal Revenue Service has been asked whether the sale of tickets of admission, under the following circumstances, constitutes the sale of admission by season ticket.

A baseball club has scheduled 70 games for the season. The regular admission charge to a single game is 75 cents. Admission to all the home games may be obtained for $35 by purchasing at one time 70 single tickets, one ticket valid for admission to each home game.

Section 4231(1)(B) of the Internal Revenue Code of 1954 provides that in the case of a season ticket or subscription the tax will not apply if the amount which would be charged to the holder or subscriber for a single admission is 50 cents or less. Section 101.2 of Regulations 43, made applicable to the 1954 Code by Treasury Decision 6091, C.B. 1954-2, 47, provides that the amount paid for admission by season ticket is a fixed sum which entitles the holder to admission on definite dates to a series of scheduled attractions, or to admission at all times during the season, and the form of the ticket is not controlling.

It is held that under the circumstances described, the sale of the 70 tickets of admission, one valid for admission to each home game, constitutes the sale of admission by season ticket. Accordingly, since in this case the amount charged for a single admission to a game is more than 50 cents, the sum of $35 paid for admission to the 70 home games is subject to the tax on admissions