Did you hear about the court case involving the Cincinnati Reds and whether or not the franchise needed to pay sales tax on bobbleheads they give away to fans at games?
How the Case Came About
The reason this case was in court was because the Ohio Department of Taxation told the Reds that they owed about $88,000 in taxes for bobbleheads and other items that had been given out to fans between 2008 and 2010.
That’s where the dispute arose, with both sides having a compelling argument in their favor.
The Reds Come Away with the Win
Ultimately, the Ohio Supreme Court ruled 5-2 that the Reds do not have to pay taxes on items like bobbleheads, t-shirts, player cards, tote bags, and other trinkets given to fans at games.
The reasoning: the Reds were able to show that the cost of the items were factored into ticket prices.
The ruling also made it clear that this was no “bobblehead loophole” when it comes to paying taxes. If, for example, other teams discount ticket prices, they may still need to pay taxes on such promotional items.