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Ezel / Tax Rulings / TX
TX 8411L0601A01 Sales and/or Use Tax (State,Local,MTA) 1984-11-02

Was the membership card sold by the taxpayer's client subject to Texas sales tax?

Short answer: No. The Comptroller said the membership card was not subject to tax, without describing the card's benefits or explaining the legal basis for the result.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 Texas Comptroller said the membership card sold by the taxpayer's client was not subject to tax.

The ruling is extremely short. It does not describe the card, its price, its benefits, or the Comptroller's legal reasoning. Although STAR's subject metadata refers to restaurant promotions and complimentary meals, the ruling body does not discuss or decide those subjects.

What this means for you

Membership-program operators

This letter records a nontaxable result for one redacted membership card, but it does not provide enough facts to show whether a different card would receive the same treatment.

Restaurants and promotional programs

The source text does not decide how free meals, two-for-one offers, or any other restaurant benefit should be taxed.

Accountants and tax professionals

Do not treat the broad STAR subject label as the holding. The operative text supports only the statement that this client's membership card was not taxable on the facts presented.

Common questions

Q: Was the membership card taxable?
A: No. The letter expressly said it was not subject to tax.

Q: Why was the card not taxable?
A: The letter does not say.

Q: Did the ruling decide whether complimentary restaurant meals were taxable?
A: No. That topic appears in STAR metadata, but not in the ruling body.

Citations and references

  • The letter cites no statute or administrative rule.

Source

Original ruling text

November 2, 1984

Dear **:

Thank you for your recent letter regarding ** membership cards
your client sells.

As we discussed, the membership card is not subject to tax.

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,

Al Van Allen
Tax Policy Section
Tax Administration Division

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