How do I calculate the Live Adult Entertainment Facility Surcharge on Form LA-1, Live Adult Entertainment Facility Surcharge Return, using the method based on admissions?

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Calculating the Live Adult Entertainment Facility Surcharge using the method based on admissions requires the operator to pay $3 per person admitted to the facility. This $3 does not have to be imposed on the customer, but it must be remitted by the operator. An operator electing to calculate the surcharge based on admissions must maintain an accurate record of the daily admissions in its books and records. 35 ILCS 175/10(a).

Example:

To meet this obligation, an employee located at the entrance of the live adult entertainment facility could sell tickets to customers entering the facility and collect them from the customers after they enter the facility. The operator then could maintain a daily record of ticket sales in its books and records.

An operator is only required to count a patron once in a 24-hour period, regardless of the number of times that patron enters the facility. The 24-hour period starts each day at 8:00 a.m. An operator must use some method of verifying that a patron previously has been admitted, such as a hand stamp or admission card.

Note: This method must be used if an operator has not filed the applicable returns under the Retailers’ Occupation Tax Act for a full calendar year prior to any January 20.