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Ezel / Tax Rulings / TX
TX 9005L1019E08 Sales and/or Use Tax (State,Local,MTA) 1990-05-02

Was a bus excursion that began and ended in Texas but traveled to the East Coast and Canada taxable as an amusement service?

Short answer: No. Although the excursion included sightseeing, its primary element was transportation between Texas and the East Coast and Canada. The Comptroller treated it as a trip rather than a taxable amusement service.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

The bus excursion began in New Caney, Texas, included sightseeing on the East Coast and in Canada, and ended in Houston.

Its primary element was transportation between Texas and those destinations. The Comptroller therefore classified it as a trip, not a taxable amusement service.

Common questions

Did the excursion include sightseeing? Yes.

Did that make it a taxable amusement service? No.

What controlled the result? Transportation was the primary element.

Source

Original ruling text

May 2, 1990

Dear **:

This is in regard to your request for a written response to
your question concerning amusement tax liability on bus
excursions originating and culminating in Texas.

The excursions will be to take in sightseeing on the East
Coast and Canada. The excursion will start in New Caney,
Texas and end in Houston, Texas.

The primary element of your service is to provide
transportation between Texas and the East Coast and Canada.
This would be more in the nature of a trip and would not be
taxable as an amusement service.

This opinion is based on the facts presented. If there are
different or additional facts, this opinion could change.

If you have further questions or need more information feel
free to call me at 1-800-531-5441. The regular number is
(512) 463-4502. You may write me at the Taxability Section,
Legal Services Division. [FAX (512) 475-0900]

Sincerely,

Gilbert Zamora
Taxability Section
Legal Division

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