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Ezel / Tax Rulings / TX
TX 9104L1106F03 Sales and/or Use Tax (State,Local,MTA) 1991-04-25

Were city-licensed horse-drawn carriage rides operated on public streets subject to Texas sales tax?

Short answer: No. The carriages were treated as nontaxable transportation services rather than taxable amusement services when operated on public streets and licensed by the city.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1991
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 operator asked whether horse-drawn carriage rides owed Texas sales tax. The business operated on public streets and was permitted by the city in a manner similar to taxicabs.

The Comptroller said horse-drawn carriages operated on public streets and licensed by the cities where they operated were nontaxable transportation services, not taxable amusement services.

What this means for you

The result depended on both the operating location and city licensing. The letter did not say every recreational carriage ride was nontaxable.

Common questions

Were the described carriage rides taxable? No.

Why? They were treated as transportation rather than amusement services.

What facts supported that treatment? The carriages operated on public streets and were licensed by the cities where they operated.

Citations and references

The letter did not cite a specific statute or rule.

Source

Original ruling text

April 25, 1991

Dear **:

Thank you for your recent letter which is restated in part with response below.

Facts: I purchased COMPANY a year and a half ago. This company has always paid
state sales tax. I talked to Mr. Martin in CITY who read from a State
Comptroller directive stating that if a horse-drawn carriage does business on
public streets and is permitted by the city in a similar manner as taxicabs,
then the carriage company is not taxable under state sales tax. Please send me
written confirmation whether a horse drawn carriage is liable for state sales
tax or not.

Response: Horse drawn carriages that are operated on public streets and are
licensed by the cities in which they operate are treated as nontaxable
transportation services rather than taxable amusement services.

This opinion is based on the facts your presented. Other facts, though similar,
may yield different results.

If you have questions or need more information, please call our toll-free
number 1-800-531-5441. My direct line number is 512-463-4680 (FAX (512)
474-2643). You may write to me in care of Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division

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