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Ezel / Tax Rulings / TX
TX 8703L0801E03 Sales and/or Use Tax (State,Local,MTA) 1987-03-25

Were charges for using passive exercise equipment at a Texas salon subject to state and city sales tax?

Short answer: Yes. The Comptroller treated the salon's paid use of passive exercise equipment as a taxable service, subject to state tax and city tax when located in a taxing city.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 1987 Texas Comptroller letter addresses a salon charging customers to use passive exercise equipment. Fitness, amusement, health-service, membership, equipment-use, sourcing, and state and local sales-tax rules may have changed or differ for active exercise or other services. STAR documents may no longer represent current policy even when not marked superseded. Identities 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 Texas Comptroller said a salon that charged customers to use passive exercise equipment was providing a taxable service.

Customer charges were subject to state sales tax. They were also subject to city sales tax when the salon was located within the limits of a city imposing that tax.

What this means for you

The letter classified the paid use of passive exercise equipment as the taxable service. It did not discuss active-exercise facilities, separately sold products, coaching, or medical services.

Common questions

Were the salon's customer charges taxable? Yes.

Did state sales tax apply? Yes.

Did city sales tax apply? Yes, if the salon was within a local taxing city's limits.

Citations and references

  • The letter cited no numbered statute or Comptroller rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller March 25, 1987

Dear ***:

Thank you for your recent letter regarding the taxability of your
services.

Salons that offer the use of passive exercise equipment for a fee have
been
determined to be providing a taxable service. Charges to your customers
are
subject to both state sales tax and city sales tax, if you are located
within the limits of a local taxing city.

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. You may write me at the Tax Administration Division.

Sincerely,
Sandi Skaggs
Tax Policy Section
Tax Administration Division

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