Is a golf course's 'trail fee' — charged to a member who brings and uses his own golf cart on the club's cart paths — subject to Texas sales tax?

Plain-English summary

A country club asked whether it was right to charge sales tax on its "trail fee" — a charge to members who bring their own golf cart and use it on the club's cart paths, rather than renting a cart from the club. The Comptroller confirmed the club was correct to collect tax: the trail fee is a taxable sale of an amusement service by the country club, governed by subsection (b) of Comptroller's Rule 3.298 on special fees charged by country clubs.

What this means for you

Golf courses and country clubs

Trail fees charged for the privilege of using your course/cart paths with a member's own cart are taxable amusement service charges, the same category that covers other special country-club fees under Rule 3.298(b) — not a nontaxable pass-through or access fee.

Golfers and country club members

If your club charges you a separate trail fee to use your own cart, expect Texas sales tax on that charge, just as if you'd rented a cart from the club.

Accountants and tax professionals

A short, clean confirmation letter — useful precedent that Rule 3.298(b)'s "special fees" category for country clubs reaches trail fees specifically, not just greens fees or cart rentals.

Common questions

Q: Is a golf cart trail fee taxable in Texas?
A: Yes, when charged by a country club for use of its cart paths, it's taxable as an amusement service under Rule 3.298(b).

Q: Does it matter that the golfer owns the cart rather than renting one from the club?
A: No — the tax attaches to the trail fee for using the club's paths, not to a cart rental.

Q: Can I rely on this letter for my own club?
A: No. This opinion is based on the facts presented, and other similar facts may yield a different result; it can be relied on only by the taxpayer it was issued to.

Citations and references

Rules:

• 34 Tex. Admin. Code Rule 3.298(b) (special fees charged by country clubs — amusement services)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200003092L

Original ruling text

March 3, 2000

Dear **:

Thank you for your letter concerning trail fees for the golf course charged by
a country club.

If an individual has his own cart, you charge a "trail fee" for his use of his
cart on the club's cart paths. You are charging sales tax on the trail fees
and asked whether this is correct.

The answer is yes. The trail fee is taxable as a sale by the country club of
an amusement service. See subsection (b) of Rule 3.298 regarding the
taxability of special fees charged by country clubs.

This opinion is based on the facts you submitted. Other facts, though similar,
may yield different results.

You may call me toll free at 1-800-531-5441, ext. 5-0030. The direct line is
512/475-0030. You may also write to Tax Policy, Comptroller of Public
Accounts.

Sincerely,

David Somerville
Tax Policy Division