Are charges for a children's summer camp and instructional classes (like karate, tennis, basketball, volleyball, and cheerleading) for kids ages 3-17 subject to Texas sales tax?

Plain-English summary

A club wrote to the Comptroller asking about the taxability of summer children's programs/camps it offered, enclosing a brochure listing camps and classes for children ages 3-17, including karate, tennis, basketball, volleyball, and cheerleading.

The Comptroller confirmed that children's camps — including day camps or boarding camps — and instructional classes in any sport or musical discipline are specifically identified in Rule 3.298(a)(2) as non-amusement services. As a result, charges for the children's camps or instructional classes the club provides are not subject to sales tax.

The letter also addressed what to do if the club had already collected and remitted tax on these camps and classes in the past: it may refund the tax to customers, and then either (1) adjust a current sales tax return for the refunded taxes, (2) amend the reporting periods in which the refunded tax was originally reported, or (3) request a refund directly from the state (per Rule 3.325(a), Refunds, Interest and Payments Under Protest), directed to the Revenue Accounting Division, Credits Verification. Any such refund claim is subject to a four-year statute of limitations from the date the tax was due and payable (Rule 3.339).

What this means for you

Summer camp and youth program operators

If you run day camps, boarding camps, or instructional classes in a sport or musical discipline for children, charges for those camps/classes are treated as non-amusement services under Rule 3.298(a)(2) and are not subject to Texas sales tax. This covers activities like karate, tennis, basketball, volleyball, and cheerleading instruction, as described in this letter.

Businesses that may have over-collected tax on camps or classes

If you previously charged and remitted sales tax on children's camps or instructional classes that qualify as non-amusement services, you can refund that tax to your customers. After refunding, you can adjust a current return, amend the original reporting period, or seek a refund from the state's Revenue Accounting Division — but only within four years of the date the tax was originally due and payable.

Parents and families

This letter doesn't create new consumer rights, but it explains why a properly structured children's camp or sport/music instructional class shouldn't carry sales tax on its enrollment fees under Texas rules.

Common questions

Q: Is sales tax due on fees for a children's summer day camp or boarding camp in Texas?
A: No. Rule 3.298(a)(2) identifies these as non-amusement services, so charges for them are not subject to sales tax.

Q: Are instructional classes in sports like karate, tennis, basketball, volleyball, or cheerleading taxable?
A: No. Instructional classes in any sport or musical discipline are also identified as non-amusement services under Rule 3.298(a)(2) and are not subject to sales tax.

Q: What if my business already collected and remitted sales tax on these camps or classes?
A: You may refund the tax to your customers, then adjust a current sales tax return, amend the reporting periods involved, or request a refund from the state under Rule 3.325(a).

Q: Is there a deadline for claiming a refund of sales tax paid on these camps or classes?
A: Yes. Under Rule 3.339, the statute of limitations on refunds is four years from the date the tax was due and payable.

Q: Can any business rely on this letter for its own camp or class offerings?
A: No. This opinion is based on the specific facts presented, and the letter itself notes that other facts, though similar, may produce a different result. Only the taxpayer who received this letter can rely on it.

Citations and references

• 34 Tex. Admin. Code § 3.298(a)(2) — camps for children (day or boarding) and instructional classes in any sport or musical discipline are identified as non-amusement services.
• 34 Tex. Admin. Code § 3.325(a) — Refunds, Interest and Payments Under Protest.
• 34 Tex. Admin. Code § 3.339 — statute of limitations on tax refunds (four years from the date the tax was due and payable).

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9207L1183D06

Original ruling text

July 17, 1992

Dear **:

Thank you for your recent letter regarding the taxability of summer children's
programs/camps offered by your club.

You enclosed a brochure listing the camps and classes available for children
ages 3-17. Some of the classes offered include: karate; tennis; basketball;
volleyball, and cheer leading.

Camps for children, including day camps or boarding camps, and instructional
classes in any sport or musical discipline are specifically identified in
section (a) (2) of Rule 3.298, as non amusement services. Therefore, charges
for the children's camps or instructional classes that you provide would not be
subject to sales tax.

If you have collected and remitted tax on these camps and classes in the past,
you may refund this tax to your customers, after which you may:

• adjust a current sales tax return for the sales taxes refunded,
• amend the reporting periods in which the refunded sales tax was reported, or
• request a refund from the state for sales taxes refunded to members. See
  section (a) of the enclosed copy of Rule 3.325,

Refunds, Interest and Payments Under Protest. You should direct this
information to the attention of: Revenue Accounting Division, Credits
Verification.

The statute of limitations on refunds is four years from the date the tax was
due and payable to this office. See Rule 3.339.

This opinion is based on the facts presented. Other facts though similar may
provide a different result.

If you have other questions or need more information, you may call me at
1-800-252-5555, extension 3-4502. The regular number is 512/463-4600. You may
also write to Tax Administration Division at the above address.

Sincerely,

Gilbert Zamora
Tax Administration Division