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Ezel / Tax Rulings / TX
TX 8503L0633D02 Sales and/or Use Tax (State,Local,MTA) 1985-03-25

How did Texas treat lump-sum golf tours, included Texas amusement tickets, and separately stated tickets?

Short answer: The tour operator did not collect tax on a lump-sum tour. For a Texas amusement ticket included in the package, tax was paid to the supplier; if separately stated, the operator could buy it for resale and collect tax from the customer. Tours outside Texas were not taxed.

Apply this to your situation

This page answers the general question as of 1985. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1985
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 operator was not required to collect sales tax when a golf tour or vacation was sold for one lump-sum price.

If the package included admission to an amusement, entertainment, or recreational event in Texas, tax was due to the operator's supplier when the ticket was purchased. If the amusement ticket was separately stated, the operator could give the supplier a resale certificate and collect sales tax from the customer on that ticket.

The letter said no tax was due on tours outside Texas. It did not separately analyze transportation-only tours or destination-management services despite STAR's broader subject metadata.

Common questions

Did the operator collect tax on a lump-sum tour price? No. Who paid tax on an included Texas event ticket? The operator paid its supplier. What changed when the ticket was separately stated? The operator could purchase it for resale and collect tax from the customer.

Citations and references

The reproduced letter cites no numbered statute or rule.

Source

Original ruling text

March 25, 1985

Dear ***:

Thank you for your letter of March 13, 1985, concerning the taxability
of arranging and promoting golf tours and vacations.

If the price of a tour is lump sum, you are not required to collect sales
tax. If an admission to an amusement, entertainment, or recreational
event is included in the packages, and the event is within the state of
Texas, tax is due to your supplier when the ticket is purchased. In
the event an amusement ticket is separately stated, you may issue a
resale certificate to your supplier and charge sales tax to your customer
on the amusement ticket. No tax is due on tours outside of Texas.

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

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. You may write us at the
Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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