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Ezel / Tax Rulings / TX
TX 8604L0723E09 Sales and/or Use Tax (State,Local,MTA) 1986-04-29

Was admission to a restaurant tasting event taxable when the ticket let attendees sample food and drinks from restaurant booths?

Short answer: Yes as a sale of food and drink, even though the admission was not an amusement-service charge. The mixed-beverage portion already subject to gross-receipts tax was excluded from sales tax.

Apply this to your situation

This page answers the general question as of 1986. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1986
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

At the annual “Taste of the Town,” area restaurants operated booths and gave attendees samples of food and drinks they sold.

The Comptroller agreed that admission was not taxable as an amusement service. The association was nevertheless selling food, so sales tax applied to the food-and-drink charge. The portion of alcoholic beverages covered by a mixed-beverage permit and already subject to gross-receipts tax was excluded.

The participating members were to collect sales tax on the selling price of the food and drinks.

Common questions

Was the admission an amusement-service charge? No.

Was it still taxable? Yes, as a sale of food and drink.

What alcohol amount was excluded? The mixed-beverage-permit portion subject to gross-receipts tax.

Source

Original ruling text

April 29, 1986

Dear **:

Thank you for your letter of April 17, 1986, concerning the taxability of
admissions to the annual "Taste of the Town" events sponsored by local chapters
of the **.

The events consist of booths occupied by area restaurants who give out free
sample "tastes" of food and drinks they sell. Although we agree that an
admission charge for this type of activity is not subject to sales tax as an
amusement service, we feel the Association is selling food. Sales tax would be
due on the charge for food and drink, except that portion of any alcoholic
beverage covered under a mixed beverage permit upon which a gross receipts tax
is collected. Your members should collect sales tax on the selling price of the
food and drinks.

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 me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600.

Sincerely,

(Mrs.) Wanda Hutcheson
Director Tax Administration

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