How did Texas tax a city's golf green fees, sales of food or other tangible property, and parking-meter fees in 1984?

Plain-English summary

The Texas Comptroller gave a city three historical tax answers:

• The city did not have to collect tax on golf green fees at a city-owned or city-operated golf course.
• It had to collect and remit the stated 5 1/8% tax on sales of tangible property, including food.
• It had to collect and remit the stated 5 1/8% sales tax on all parking-meter fees.

The 5 1/8% rate is the rate printed in this 1984 letter and should not be treated as a current Texas rate.

What this means for you

City finance departments

The letter separated golf green fees from a city's taxable property sales and parking-meter receipts.

Municipal golf courses and concession operations

The green fee was nontaxable, while food and other tangible-property sales were taxable at the historical rate stated in the source.

Accountants and tax professionals

Do not reuse the printed rate. Confirm current state and local rates and the current tax treatment of municipal parking and recreation charges.

Common questions

Q: Did the city collect tax on golf green fees?
A: No.

Q: Did the city collect tax on food and other tangible-property sales?
A: Yes, at the historical 5 1/8% rate stated in the letter.

Q: Were parking-meter fees taxable?
A: Yes, at that same stated historical rate.

Citations and references

• The letter cites no statute or administrative rule.
• The 5 1/8% rate is historical and appears verbatim in the 1984 source.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8410L0603D05

Original ruling text

October 31, 1984

Dear **:

Thank you for your letter regarding city sponsored services and parking
meters.

Your questions and the answers are as follows:

1. "Is it a true understanding that city sponsored services such a golf
   green fees, concession stands sponsored by the City and other such
   activities which serve food which are sponsored by the City are in fact
   exempt from the new provisions of the sales tax law."

Answer: The City is not required to collect tax on golf green fees at a
city owned or operated golf course. The city must collect and remit 5 1/8
percent tax on all sales of tangible property, which includes food.

2. "It is my understanding that City operated parking meters are not
   exempt from the sales tax provision because of an error in identifying
   exempt status in the new sales tax law. Therefore I comprehend that the
   City should remit 4 1/8% of all parking meter revenues collected to the
   State of Texas."

Answer: The city must collect and remit 5 1/8 percent sales tax on all
parking meter fees.

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, or call toll free 1-800-252-5555 from anywhere in Texas or phone
512/475-1931.

Sincerely,

Dot Burchard
Tax Policy Section
Tax Administration Division