Was a bookstore's fee for admission to a merchandise-display area a taxable amusement charge in Texas?

Plain-English summary

The bookstore charged admission to part of the store and asked whether that area was an “event.” The Comptroller said the merchandise display was an event and the admission charge was taxable under Rule 3.298(a)(1)(B).

For the amusement tax rule, an event could be an ongoing activity. It was not limited to a single, isolated, or infrequent occasion.

Common questions

Was the admission charge taxable? Yes.

Could an ongoing display count as an event? Yes.

Did the reproduced body identify the books or movies mentioned in STAR's caption? No.

Citations and references

• Texas Comptroller Rule 3.298(a)(1)(B) — amusement-tax provision applied to the admission charge.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8601L0693E11

Original ruling text

January 16, 1986

Dear ***

Thank you for your letter inquiry on the taxability of admission fees to
a portion of a bookstore charged by your client. You asked whether the
admission to the back of the store was an "event."

The admission charge is subject to the sales tax under Rule 3.298
(a)(1)(B). The display of the merchandise for sale is considered an event.
An event can be an ongoing activity for purposes of the tax on amusements.
An event simply means "something that happens" and is not limited to single,
isolated or infrequent occasions. Enclosed is the referenced rule.

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