Court: Reds exempt from tax on promotional bobbleheads
Recent Cases
Quoting the Cincinnati Reds’ long-time play-by-play announcer, the Ohio Supreme Court declared Tuesday that “this one belongs to the Reds.”
The state’s high court ruled 5-2 that the Major League Baseball franchise is exempt from paying tax on the purchase of bobbleheads and other promotional items the team offers to ticket buyers.
The opinion written by Justice Patrick Fischer warned that the ruling was specific to the case and might not apply for other sports organizations. But the Department of Taxation’s chief legal counsel, Matt Chafin, said the decision essentially shows professional teams how to avoid the “use tax” on promotional items.
Reds spokesman Rob Butcher said the club is “happy with the outcome,” but is still reviewing the opinion.
The department argued the bobbleheads should be taxed because they’re bought by the Reds as giveaways, not sold with tickets. The Reds argued they’re exempt because they resell the items as part of the ticket package and Ohio law exempts companies from paying tax on items they buy for resale.
Fischer, a Cincinnati resident, led off the opinion with a long summary of Ohio’s role in baseball history beginning in 1869, when the Cincinnati Red Stockings became the first all-professional team. There are references to Hall of Famers from Ohio including players Cy Young, Mike Schmidt and Barry Larkin, to the 1975-76 “Big Red Machine” champions, and firsts such as Larry Doby of the Cleveland Indians becoming the first black American League player and to the first night game being played in Cincinnati.
Then, in explaining the ruling, Fischer wrote that unlike a foul ball or a T-shirt shot into the stands (the Reds use a contraption called “Redzilla” to fire free T-shirts into the crowd) that fans have no expectation of receiving, they buy tickets for games that have been advertised as bobblehead games expecting to get the bobbleheads, which last season included All-Stars Joey Votto and Eugenio Suarez.
After quoting Reds’ broadcaster Marty Brennaman’s signature “this one belongs to the Reds,” Fischer as he neared the opinion’s conclusion also quoted Brennaman’s late broadcasting partner, Joe Nuxhall, saying the justices were “rounding third and heading for home.”
Dissenting Justice Mary DeGenaro wrote that the the Reds were escaping sales tax or use tax on promotional items that generally apply to similar purchases. She pointed out that the Reds often limit the promotional items, such as free to the first 30,000 fans.
Related listings
-
Malaysia court to resume Kim Jong Nam murder trial on Jan. 7
Recent Cases 11/05/2018A Malaysian court on Wednesday set Jan. 7 for two Southeast Asian women charged with murdering the North Korean leader’s half brother to begin their defense, as their lawyers complained that some witnesses were unreachable.A High Court judge in...
-
Indian court seeks pricing of Rafale jet deal with France
Recent Cases 10/31/2018India's top court on Wednesday ordered the government to provide pricing details of 36 Rafale fighter jets it is buying from France.The court said the government must bring details of the decision-making process of the deal into the public domain, ex...
-
Court orders Japan company to pay 4 Koreans for forced labor
Recent Cases 10/31/2018In a potentially far-reaching decision, South Korea's Supreme Court ruled that a major Japanese steelmaker should compensate four South Koreans for forced labor during Japan's colonial rule of the Korean Peninsula before the end of World War II.The l...
New York Adoption, Foster Care Litigation and Family Law
Rosin Steinhagen Mendel is a law firm dedicated to serving our clients in New York City, the surrounding counties in southern New York State, and in New Jersey, in the areas of adoption, foster care litigation, and family law.
We represent our clients in all types of proceedings that include termination of parental rights, permanency hearings, custody hearings, guardianship, administrative proceedings, and adoption. Our goal is to provide each of our clients with the best possible representation in all aspects of their cases, and clients appreciate our careful analysis of individual cases, through preparation and attention to detail. For over 35 years, our attorneys have represented adoptive parents, birth parents, foster parents, children, foster care agencies, and adoption agencies. We represent our clients in all types of proceedings that include termination of parental rights, permanency hearings, custody hearings, guardianship, administrative proceedings, and adoption.
Our goal for our lawyers is to provide each of our clients with the best possible representation in all aspects of their cases, and clients appreciate our careful analysis of individual cases, through our preparation and attention to detail.