Wiregrass Newsroom: No Sales Tax on Festival Ticket Revenue

Dothan, AL (WSFA) -- The National Peanut Festival Board has gone back and forth with the state of Alabama regarding the state sales tax that it's required to pay for the fair.

After three favorable rulings in the span of five years the National Peanut Festival is once again not required to pay state sales taxes on its seven dollar admission sales.

Pat Holland is the president of the National Peanut Festival Board of Trustees and says because the festival is based on agriculture, they won't have to pay sales tax on their ticket revenues.

"We are an agricultural fair.  We always have been.   When we moved our facilities here, the first money that we invested was in our agricultural complex there, and that's what we have stressed since the fair was open."

According to Holland, state law says any Alabama fair based on agriculture is exempt from sales taxes on ticket revenue. However, this does not apply to the carnival section of the festival which is responsible for paying taxes on ride and food revenue.

"The carnival is completely separate from the National Peanut Festival.   They completely run their area, and we run this side over here," says Holland.

With the festival closing Sunday night, the board is scheduled to meet Monday to discuss and finalize what sales will be taxed.

Reporter: Melissa McKinney