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Revenue Ruling

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 Rev. Rul. 54-7

1954-1 C.B. 234

Caution: Obsoleted by Rev. Rul. 69-227

Full Text

Rev. Rul. 54-7

Persons are admitted to certain areas of a dam without payment of any charge. However, persons who take a guided tour for which a fee is charged are admitted to areas of the dam and to a powerhouse to which persons who do not take the tour are not admitted. The proceeds from the tour are used to compensate guides and to maintain tourist facilities. Held , an amount paid for a guided tour which includes admission to areas to which persons who do not take the tour are not admitted constitutes an amount paid for admission and is subject to the tax imposed under section 1700(a) of the Internal Revenue Code. The tax applies even though the proceeds from the tour are used to compensate guides and to maintain tourist facilities. However, an amount paid for a tour of areas to which anyone may be admitted free of charge is not considered an amount paid for admission and is not subject to tax.