 |
SALES TAX SLICE: THE SALES TAX PRICE TAG ON CELEBRITY SWAG BAGS
Source:
bna.com
- Jan 12, 2017
An occupational hazard of working in the sales tax world is that we can start to view everything through the lens of sales taxes. So, while everyone else was ogling the dresses, the shoes, the hair styles and the delightful goodies celebrities received in their extravagant gift bags at this past Sunday’s Golden Globe Awards ceremony, a few of us were wondering (ok, maybe it was just me), “Hey, who paid sales and use tax on that fancy swag?”
Apparently, the gift bags given away at the Golden Globes, or the Oscars or Emmys, are “curated” and distributed by third-party companies (unrelated to the awards sponsors) that specialize in celebrity gifting. It seems the swag in those bags is collected from vendors located across the country (or the globe). The gifts given away to nominees at the 2016 Oscars were valued at $232,000; last year’s Emmy gift bag was valued at mere $55,000+. At this year’s Golden Globes, separate bags were available for women and for men, and I understand the women’s swag (including lots of cosmetics and a fitness tracker) was valued at a comparatively modest $593. For sales tax purposes (because that’s what we talk about here), the gift recipients—not only the awards winners and nominees, but the presenters and attendees, too—probably will not have to pay tax on their bounty. The Hollywood stars were given the bags as gifts. No sale transaction has taken place because there’s been no transfer of title or possession for a consideration. Hence, no sales tax. Celebrities get all the breaks.[i]
CLICK SOURCE ABOVE TO READ ENTIRE ARTICLE
Category: General Business
|
