| (F) jukeboxes; and
(G) batting cages.
(5) Sales tax is not due on the occasional sale of an amusement
service.
(6) Sales tax is not due on the purchase of an amusement service
by an exempt entity for its own amusement or for the amusement of its members.
See §3.322 of this title (relating to Exempt Organizations). The seller
must secure a valid exemption certificate. An amusement service is purchased
for the amusement of its members irrespective of whether:
(A) the organization pays the admission for the members;
(B) the members reimburse the exempt organization; or
(C) the members directly pay the service provider under an
agreement by the provider to accept payments from individual members, the
aggregate total of which equals the contractual obligation of the organization.
(7) Sales tax is not due on the purchase of the admission to
an activity that may be classified as an amusement, entertainment, or recreation,
if purchased under a written prescription of a licensed practitioner of the
healing arts for the primary purpose of health maintenance or improvement.
The written prescription must specify the type of the treatment needed. If
a membership privilege is purchased pursuant to a written prescription, a
new prescription must be obtained each time the membership is renewed.
(8) Except as provided under subsection (g)(1)(E) or (F) of
this section, tax is due on an amusement service provided by an organization
that is not exempted under subsection (g) or (h) of this section, when the
facilities used to provide the amusement service are leased or rented from
an organization that is exempted under subsection (g) or (h) of this section.
(h) Governmental entities.
(1) Entities recognized as governmental entities are subject
to the provisions of this subsection even though the entities may also be
classified under the Tax Code, §151.3101(a)(3), (4), or (5).
(2) Unless an event is solely for educational purposes, an
amusement service provided by this state, an institution that this state owns
or operates, an agency of this state, a city, county, school district, special
district, or other political subdivision of this state, or any agency of the
United States, is taxable if the public entity contracts with a person, a
for-profit organization, or any other organization that is not listed in Tax
Code, §151.3101(a)(1), to provide the expertise to produce or provide
a musical concert or other amusement event. These public entities must collect
sales tax on admissions to amusement events that are provided by or in conjunction
with a person, a for-profit organization, or other organization that is not
listed in Tax Code, §151.3101(a)(1). This provision does not apply to
a public institution of higher education as defined under Education Code, §61.003(8).
Public institutions of higher education are included in the term "educational
organizations" and are subject to the provisions of subsection (g)(1)(C) of
this section.
(3) An amusement is not solely for educational purposes unless
either 100% of the proceeds from the admissions go to the educational organization,
or students at the educational institution actually perform the amusement.
(i) Collection of the tax.
(1) Persons who sell admissions to an amusement service for
resale may accept a resale certificate from the purchaser of the amusement
in lieu of tax. The resale certificate will cover all convenience fees, handling
charges, service charges, etc., that promoters, ticket services, and others
add to the sales price of the admission.
(2) Each seller of amusement services who sells to the final
consumer must collect and remit the tax to the comptroller, based on the total
receipts from all taxable sales. A seller is responsible for remitting the
correct amount of tax based on the total sales price of admissions, including
any charges that others have added.
(3) The comptroller may regard any seller of an admission to
an amusement service as the agent of the person from whom he obtains the tickets
or other admission document, if the comptroller determines that the tax will
be collected more efficiently. The seller of an admission to amusement service
is regarded as the agent if:
(A) the person who provides the tickets or other admission
documents obtains written authorization from the comptroller to assume responsibility
for the tax collection of the agent;
(B) the person who provides the tickets includes in the sales
price of the admission any convenience fee, handling charge, etc., that the
agent has added to the price; and
(C) the provider of the tickets gives to the seller/agent a
written statement that the provider holds a tax permit issued by the comptroller
and is assuming responsibility for tax collection and reporting for the agent.
(j) Records. Every seller of admissions to amusement services
is responsible for keeping accurate records of all sales and purchases. See §3.281
of this title (relating to Records Required; Information Required). Every
seller of admissions to amusement services must hold a sales tax permit and
must file reports as required by §3.286 of this title (relating to Seller's
and Purchaser's Responsibilities). A reseller of a ticket or admission document
to an amusement service who deducts the "adjusted value" of the ticket or
admission document purchased for resale from a non-permitted purchaser, as
provided in subsection (f)(5) of this section, must have records that verify
the deduction, including:
(1) the name and address of the non-permitted purchaser;
(2) the face value of any ticket or admission document that
a non-permitted purchaser has purchased;
(3) proof (such as a copy of the ticket or admission document)
showing that sales tax is included in the price of the ticket or admission
document;
(4) the sales of tickets or admission documents; and
(5) the remaining inventory of unsold tickets or admission
documents.
(k) Local tax. City, county, transit authority, and special
purpose district tax should be allocated to the city, county, transit authority,
and/or special purpose district where the amusement event occurred.
|
| Source Note: The provisions of this §3.298 adopted to be effective July 8, 1985, 10 TexReg 2074; amended to be effective May 5, 1986, 11 TexReg 1833; amended to be effective July 30, 1987, 12 TexReg 2339; amended to be effective May 26, 1988, 13 TexReg 2252; amended to be effective November 13, 1989, 14 TexReg 5735; amended to be effective September 29, 1992, 17 TexReg 6372; amended to be effective July 26, 1998, 23 TexReg 7381; amended to be effective June 13, 2001, 26 TexReg 4214 |
