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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3TAX ADMINISTRATION
SUBCHAPTER OSTATE AND LOCAL SALES AND USE TAXES
RULE §3.298Amusement Services

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

  (1) Amusement services--Entertainment, recreation, sport, pastime, diversion, or enjoyment that is a pleasurable occupation of the senses. Amusement services and places that offer amusement services include, but are not limited to, the following:

    (A) live or recorded performances, whether by individual ticket or by season tickets:

      (i) ballet performances;

      (ii) circuses;

      (iii) ice skating shows;

      (iv) motion pictures;

      (v) musical concerts;

      (vi) opera performances;

      (vii) outdoor theatres; and

      (viii) theatres (movies and plays);

    (B) exhibitions or displays:

      (i) animal shows (contests, exhibitions);

      (ii) antique shows;

      (iii) aquatic shows;

      (iv) arts and crafts, and art shows (fairs);

      (v) auto shows;

      (vi) museums (that display art objects, wax figures, antique autos, etc.); and

      (vii) zoos;

    (C) spectator sports:

      (i) drag strip operation;

      (ii) horse shows (horse riding exhibitions);

      (iii) motorcycle races;

      (iv) automobile races (full size and miniature cars);

      (v) rodeo;

      (vi) sporting events such as football, baseball, basketball, hockey, and soccer games; and

      (vii) wrestling, boxing, or arm wrestling;

    (D) participatory sports or games:

      (i) athletic clubs;

      (ii) bowling games;

      (iii) court fees--tennis, racketball, handball, etc.;

      (iv) domino games (including by the hour);

      (v) go-cart raceways;

      (vi) golf courses;

      (vii) golf driving ranges;

      (viii) health clubs (spas), (admissions and memberships);

      (ix) miniature golf courses;

      (x) chartered boat or party boat excursions (see paragraph (2) of this subsection for excursions of more than one day duration, and for excursions on which fishing guide services are provided);

      (xi) pool (billiards) games (by the game or by the hour);

      (xii) skate board tracks;

      (xiii) skating rinks (roller skating and ice skating);

      (xiv) swimming pools;

      (xv) water slides; and

      (xvi) physical fitness centers;

    (E) fairs or carnivals:

      (i) amusement parks;

      (ii) carnivals;

      (iii) fairs;

      (iv) games of skill, at a circus, carnival, etc.;

      (v) shooting galleries (ranges); and

      (vi) side shows;

    (F) other:

      (i) except as provided by subsection (e)(4) of this section, cover charges (for admission to night clubs, dance halls, discos, etc., that provide dancing, music, or other entertainment);

      (ii) hot tub concessions;

      (iii) parties (New Year's Eve) that radio stations, hotels, etc., sponsor. Ticket price includes meal, set-ups, entertainment, party favors;

      (iv) rides for pleasure (in hot-air balloons, helicopters, trains, ships, boats, etc.);

      (v) tour trains and buses, whose primary purpose is to show tourist sights along a route, as opposed to regular transportation;

      (vi) tours of tourist attractions, including ships, buildings, monuments, and natural wonders such as caves and caverns; and

      (vii) palm reading, fortune telling, and astrological chart preparation;

    (G) country clubs and other private clubs and organizations that provide entertainment, recreation, sports, dining, or social facilities to members.

  (2) Nonamusement services--Activities that are primarily instructional in nature, or nontaxable personal services. Places, services, and clubs that the tax on amusement services does not cover include, but are not limited to:

    (A) hobby clubs (stamp collecting clubs, toastmaster clubs, camera clubs, amateur radio clubs);

    (B) instructions for any sport or musical discipline;

    (C) camps for children (day camps or boarding camps);

    (D) video cassette clubs;

    (E) political fundraisers;

    (F) campground admissions;

    (G) cruises that last longer than 24 hours and extend offshore beyond Texas territorial limits;

    (H) fishing and hunting leases and guide services; and

    (I) membership in sororities and fraternities.

  (3) Occasional sale--The sale of not more than 10 admissions for amusement services during a 12-month period by a person who does not hold himself out as engaging, or does not habitually engage, in the sale of amusement services.

  (4) Provider of an amusement service--The person who has legal rights of ownership over, or the legal right to provide, present, or offer, an amusement, entertainment, or recreation that is rendered on a regular basis at a fixed location, and for which admissions are sold, such as the owner of the wax figure display at a wax museum. The provider of an amusement service is also the person who has legal rights of ownership to an amusement, entertainment, or recreation that will not be rendered on a regular basis at a fixed location, and for which amusement service admissions will be sold, such as the provider of a singer's one-night live performance. A provider of an amusement service may be, but is not always, the owner of the facility (land and/or building) at which the amusement service is offered or performed. A provider of an amusement service may gain the right of providing an amusement service by virtue of a contract or agreement (lease, rental, concession right) with the performer(s) of the entertainment, or with a facility owner when the use of that facility constitutes the amusement service. Terms used within the amusements industry to refer to a provider include manager, promoter, concessionaire, tenant, or association (or club) president.

  (5) Sales price of an amusement service--The fee charged for admission to an amusement, including a convenience fee, handling charge, service charge, or other amount that is over and above the amount that would be charged for an amusement admission at the ticket counter of the facility at which the amusement service will be rendered. Sales price also includes dues, initiation fees, and other charges, assessments, and fees required for a special privilege, status, or membership classification in a private club or organization. Receipts subject to tax under the Texas Alcoholic Beverage Code, §202.02, are not included in the sales price of an amusement service.

  (6) Sales price of membership to country clubs, including clubs described by the Internal Revenue Code of 1986, §501(c)(7)--The sales price includes dues, initiation fees, and other charges, assessments, and fees required for a special privilege, status, or membership classification in a private club or organization. Whether the club has its own facilities is irrelevant to the determination of sales price. Receipts subject to tax under Texas Alcoholic Beverage Code, §202.02, are not included in the sales price of an amusement service.

  (7) Seller of admissions to amusement services--A person who sells more than 10 admissions to amusement services during a 12-month period, and includes those persons who hold themselves out as engaging, or who habitually engage, in the sale of admissions to amusement services.

  (8) Sale of an amusement service admission--The transfer of title to, or possession of, a ticket or other admission document for consideration, or the collection of an admission, membership, or enrollment fee, whether by individual performance, subscription series, or membership privilege, or through the use of a coin-operated or credit-card-operated machine. The consideration paid may secure the admission privilege for an individual or a group of individuals. The contract or agreement whereby the right is secured for a provider to offer an amusement, recreation, or entertainment as an amusement service is not the sale of an admission to an amusement service and is not subject to sales tax, such as the payment of a fee to a singer for a performance that the payer of the fee will provide as an amusement service through the sales of tickets.

Cont'd...

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