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Ezel / Tax Rulings / TX
TX 9108L1123G13 Sales and/or Use Tax (State,Local,MTA) 1991-08-02

Was an approximately $50 fee to use a Galveston bungee-jump concession subject to Texas sales tax?

Short answer: Yes. The Comptroller treated the per-jump charge as a taxable admission to an amusement service, comparable to taxable admission fees for a golf course or tennis court.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 City of Galveston had approved a request for a private person or company to operate a bungee-jump concession. The requester asked whether the approximately $50 per-jump fee was subject to sales tax.

The Comptroller answered yes. The fee was a taxable admission to an amusement service under Rule 3.298, comparable to a taxable admission fee for a golf course or tennis court.

What this means for you

The letter classified the charge by what the customer bought: admission to participate in an amusement activity. It did not treat the fee as a nontaxable rental or general service.

This is a short 1991 fact-specific answer. Current amusement-service definitions and any later exclusions should be verified before applying it today.

Common questions

Was the bungee-jump fee taxable? Yes.

How did the Comptroller classify it? As admission to an amusement service.

What comparisons did the letter use? Taxable admission fees for golf courses and tennis courts.

What rule did the letter cite? Rule 3.298.

Citations and references

  • 34 Tex. Admin. Code Rule 3.298 — amusement services.

Source

Original ruling text

August 2, 1991

Dear **:

Thank you for your recent letter. As I understand it, the
City of Galveston has approved a request by a private
individual or company for a concession to operate a "Bungee
Jump". You ask whether the (approximately) $ 50.00 per-jump
fee is subject to sales tax.

The fee is taxable as an admission to an amusement service,
equivalent to a taxable admission fee to a golf course,
tennis court, etc., as described in enclosed Rule 3.298.

This opinion is based on the facts presented. Different
facts, though similar, might lead to different answers. If
you have further questions, feel free to write or call me at
1-800-252-5555,.ext. 3-3889.

Sincerely,

John Christian
Attorney
Tax Administration

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