What did a May 1987 Texas Comptroller internal memo and approved announcement say about fishing guide services?

Plain-English summary

This STAR record contains an internal memorandum about distributing a Comptroller-approved announcement concerning fishing guide services. The memo says the Comptroller wanted broad distribution of a letter announcing a proposed new rule to exempt fishing guide services, and it asks staff to report when the rule was filed and its effective date.

The attached announcement says the tax policy group had determined that fishing guide services were not subject to sales tax because guide services were personal services rather than recreation services covered by the Legislature's 1984 revisions. It also says fishing guides received the same exempt treatment previously given hunting guides and that fishing excursion boat services were not taxable.

The record does not state that the proposed rule was filed, adopted, or effective on a particular date.

What this means for you

The attached announcement is strong evidence of the Comptroller's intended public position in May 1987. The internal memo, however, expressly describes rulemaking steps as still pending, so the record should not be presented as a final adopted rule.

Common questions

What did the approved announcement say about fishing guides? That fishing guide services were not subject to sales tax.

What was the stated reason? Guide services were classified as personal services rather than recreation services.

What did it say about hunting guides and fishing excursion boats? Hunting guides had already received exempt treatment, and fishing excursion boat services were not taxable.

Does this record prove the proposed rule was filed or became effective? No. The memo asks staff to provide the filing and effective date but does not record them.

Citations and references

• The memo describes “the proposed new rule to exempt fishing guide services.”
• The attached announcement states that “fishing guide services are not subject to the sales tax.”
• No statute, rule number, filing date, or effective date appears in the record.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8705L0811B09

Original ruling text

INTEROFFICE BOB BULLOCK
MEMORANDUM COMPTROLLER OF
PUBLIC ACCOUNTS

May 28, 1987

TO: Claudia Stravato

FROM: Tony Proffitt

SUBJECT: Fishing Guide Rule

Mr. Bullock wants wide distribution of a letter announcing the proposed
new rule
to exempt fishing guide services.

I understand that Dan and/or Wade will get with Wanda to see that the
rule is
placed in the Texas Legislature.

Glen has drafted a letter, which Mr. Bullock has approved, to go to
affected
taxpayers. I am attaching to this memo a suggested list of
associations to
which the letter should be sent to cover all bases.

It Tax Administration will handle contacting the groups and associations,
I'll
cover the news media.

Please let me know when the rule is filed and its effective date.

Dear ---- :

I am pleased to announce that based on a review by our tax policy
group, we have determined that fishing guide services are not subject
to the sales tax.

Our decision is based on a finding that guide services are personal
services as opposed to recreation services which are covered by the
Legislature's 1984 revisions to the sales tax law.

This means that fishing guide services are given the same tax exempt
treatment previously given hunting guide services. Also, fishing
excursion boat services are not taxable.

I regret any inconvenience caused by earlier confusion over our
interpretation of the law.

Sincerely,
BOB BULLOCK