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Ezel / Tax Rulings / TX
TX 8509L0663C12 Sales and/or Use Tax (State,Local,MTA) 1985-09-13

Could a health spa collect Texas sales tax on only 10% of its membership dues and fees?

Short answer: No. Membership fees were fully taxable unless each member could select services or classes so that the individual's fee was unique.

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 1985 Texas Comptroller taxpayer-response letter addressing health-spa membership dues and fees after the October 2, 1984 implementation date stated in the letter. It rejected percentage taxation and described an exception when a member selected services or classes and therefore had an individualized fee. It expressly says different facts could change the opinion. Current health-spa, club, membership, optional-service, and sales-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded. Letters on STAR can support detrimental reliance only for the taxpayer to whom the letter was directly issued under 34 Tex. Admin. Code Rules 3.1 and 3.10. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice.
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

Health-spa membership fees were taxable in full after the stated October 2, 1984 implementation date. The letter said there was no provision allowing tax on only a percentage of a fee.

The full charge applied unless a member could choose the services or classes in which to participate, making the fee unique to that individual.

Common questions

Could the spa tax only 10% of dues and fees? No.

What amount was taxable? The total membership charge.

When could the result differ? When members selected services or classes and each person's fee was individualized.

Citations and references

The reproduced letter cites no numbered statute or rule.

Source

Original ruling text

September 13, 1985

Dear ***:

Thank you for your letter of September 3, 1985 requesting a written
private ruling stating that only 10% of your dues and fees are taxable.

With the implementation of the tax on health spas on October 2, 1984,
membership fees are taxable in total.

There is no provision for taxing a percentage of a fee. You must collect
tax on the total amount charged for a membership unless the member has the
option of selecting the services or classes they wish to participate in,
making each fee unique to that particular individual.

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 Administration Division

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