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Ezel / Tax Rulings / TX
TX 8801L0867B08 Sales and/or Use Tax (State,Local,MTA) 1988-01-25

Were helicopter-ride charges taxable as amusement services when the ride occurred in Texas?

Short answer: Yes. Texas treated helicopter rides as taxable amusement services when the event or service location was in Texas. Operators had to hold sales-tax permits and collect tax; admissions to services outside Texas were nontaxable.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
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 a taxpayer-specific January 1988 Texas Comptroller letter applying Rule 3.298. It says the opinion may change if the facts differ. The location rule quoted by the letter taxes admission when the amusement event or service location is in Texas and excludes services outside Texas. Amusement-service, aviation, admission, event-location, permit, and collection rules may have changed; verify current law. STAR documents may no longer represent current policy even when not marked superseded. 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

Rule 3.298 specifically listed helicopter rides as amusement services. The Comptroller said the operator's Texas ride charges were taxable.

The rule taxed admission when the amusement event or service location was in Texas and did not tax admission when the event or service was outside Texas. Other Texas helicopter-ride operators also had to hold sales-tax permits and collect tax.

What this means for you

The historical result followed the location of the amusement service, not whether competitors were collecting tax.

Common questions

Were Texas helicopter rides taxable? Yes.

Did the operator need a permit? Yes.

Were rides outside Texas taxable under the quoted rule? No.

Citations and references

  • 34 Tex. Admin. Code Rule 3.298(e)(1), (f)(iv) — historical amusement-services rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS

STATE OF TEXAS

AUSTIN, 78774

January 25, 1988

Dear ***:

On behalf of Mr. Bullock, I hope you'll accept my apology for the delay in answering your question involving the taxability of a helicopter ride business. This isn't the way we normally do business.

Our people were, and still are, swamped by a deluge of inquiries as they attempted to interpret provisions of the new law and draft rules which would not adversely impact businesses. In many instances, an answer to a question just wasn't available when the question arrived.

I am enclosing a copy of Rule 3.298 which outlines amusement services that are taxable. Item (F)(iv), specifically addresses helicopter rides. Additionally, item (e)(1) states: Sales tax is due on the sale of an admission to an amusement service if the event or location of the service is within the State of Texas. Sales tax is not due on the sale of an admission to an amusement service if the event or location of the service is outside Texas.

You stated you have talked to ride operators all over Texas and have yet to find one that charges tax. They are also required to hold a sales tax permit and collect tax. You may offer to show other ride operators this letter.

Please contact this office and identify the ride operators you have talked to so that we may furnish them proper information on their tax responsibilities.

Based on the facts presented, your charges for helicopter rides are taxable as amusement services.

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 Telephone Bank Operations.

Sincerely,

Gloria Anglin

Telephone Bank Operations

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