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Ezel / Tax Rulings / TX
TX 9004L1100G12 Sales and/or Use Tax (State,Local,MTA) 1990-04-16

Were bus trip packages with extensive travel and overnight accommodations taxable Texas amusement services?

Short answer: No. The Comptroller treated the packages as general travel arrangements rather than taxable scenic bus tours because they included extensive travel and overnight lodging, and agreed to refund the sales tax paid in the recent audit.

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This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Bus trip packages that included extensive travel and overnight accommodations were not subject to sales tax. The Comptroller treated them as packaged travel arrangements rather than taxable bus tours.

The letter distinguished taxable bus tours along a scenic route from more general travel by bus. It also said the Comptroller would refund the tax the client had paid in a recent audit.

Common questions

Why were these packages nontaxable? Their extensive travel and overnight accommodations made them general travel arrangements.

What kind of bus trip did the letter describe as taxable? A bus tour along a scenic route treated as an amusement service.

Was audit tax refunded? The letter says the Comptroller would refund it.

Source

Original ruling text

April 16, 1990

Dear ***:

I had Larry Craddock, the agency General Counsel, look into the questions
you raised regarding the bus trip packages sold by ***.

We are pleased to tell you that the bus tours given by *** are
not subject to sales tax. Therefore, we will refund the tax that they paid on
the recent audit.

We believe that the extensive travel and overnight accommodations
provided by *** make it clear that your client is selling packaged
travel arrangements, not bus tours. Bus tours along a scenic route are
taxable as amusement services, but more general travel by bus is not.

I'm glad we were able to resolve your questions. If we can be of further
assistance, do not hesitate to contact me.

Sincerely,

JACK ROBERTS
Chief Deputy Comptroller

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