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Ezel / Tax Rulings / TX
TX 8409L0589E09 Sales and/or Use Tax (State,Local,MTA) 1984-09-05

Did Texas tax validated free restaurant parking, separately charged parking, or the services of strolling troubadours?

Short answer: Validated free parking for restaurant customers was not taxable. A separate parking charge became subject to sales tax on October 2, 1984. The restaurants were not required to collect or report tax on services provided by strolling troubadours.

Apply this to your situation

This page answers the general question as of 1984. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1984
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Comptroller gave three direct answers for a restaurant operator:

  • Validated free parking was not taxable.
  • Charged parking became taxable on October 2, 1984.
  • The restaurants did not have to collect or report tax on services provided by strolling troubadours.

What this means for you

Restaurants offering parking

The historical distinction was between free parking validated for customers and parking sold for a charge.

Restaurants featuring strolling musicians

The letter did not require the restaurants to collect or report tax on the troubadours' services.

Common questions

Q: Was validated customer parking taxable?
A: No, when it was provided free.

Q: What if the restaurant charged for parking?
A: The charge became taxable on October 2, 1984.

Q: Did the restaurant collect tax on strolling-troubadour services?
A: No.

Citations and references

The letter does not cite a statute or administrative rule.

Source

Original ruling text

September 5, 1984

Dear **:

Thank you for your letter of August 24, 1984, regarding the taxation of
free parking provided to customers and the services provided by strolling
troubadours.

The free parking allowed to customers when their tickets are validated is
not subject to tax, however when there is a charge for parking, sales tax
is due on such charge as of October 2, 1984.

Your restaurants will not be required to collect and report tax on the
services provided by the strolling troubadours.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have additional questions. You
may write me, call toll free 1-800-252-5555 from anywhere in Texas or
phone 512/475-1931.

Sincerely,

Miss Jeannon Kralj
Tax Policy Section
Tax Administration Division

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