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Ezel / Tax Rulings / TX
TX 8511L0683D06 Sales and/or Use Tax (State,Local,MTA) 1985-11-27

Was a play-by-mail game a taxable amusement service in Texas?

Short answer: Yes. The game fit the then-current definition of amusement services as entertainment, recreation, pastime, diversion, or pleasurable enjoyment.

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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 applying the amusement-service definition that the letter says became taxable October 2, 1984. It expressly says different facts could change the opinion. Current game, remote-entertainment, amusement, permit, digital-service, and sales-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded.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

The Comptroller said the play-by-mail game fit the then-current definition of a taxable amusement service. That definition covered entertainment, recreation, sport, pastime, diversion, or enjoyment that was a pleasurable occupation of the senses.

The letter said amusement services became taxable effective October 2, 1984 and included a permit application packet.

Common questions

Was the play-by-mail game taxable? Yes.

Why? It fit the letter's amusement-service definition.

Did the provider need a permit? The letter included an application packet and directions for obtaining one.

Citations and references

The reproduced letter cites no numbered statute or rule.

Source

Original ruling text

November 27, 1985

Dear ***:

Thank you for your letter of November 21, 1985, concerning the taxability
of a play-by-mail-game, ***.

Effective October 2, 1984, the sales tax law imposed a tax on amusement
services. Amusement services were defined as -- entertainment, recreation,
sport, pastime, diversion or enjoyment that is a pleasurable occupation
of the senses. Your play-by-mail game fits the definition and is taxable.

Enclosed is an application packet which includes a listing of our field
offices. A permit may be obtained at the office nearest you.

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 us if you have additional questions. You may
write us, call toll free 1-800-252-5555 from anywhere in Texas.

Sincerely,

Tax Policy Section
Tax Administration Division

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