For a sports collectibles/memorabilia show, is general admission taxable, are vendor booth rentals taxable, and is a separate charge for celebrity autographs taxable?

Plain-English summary

A producer of sports collectibles and memorabilia shows in Texas asked about three separate revenue streams:

1. General admission. The general public pays an admission fee to enter the show. The Comptroller confirmed Texas sales tax is due on admission to an amusement service like a collectibles and memorabilia show.

2. Vendor booth rentals. Outside vendors of sports merchandise pay the show producer for exhibit booth space, and the producer wasn't charging tax on those rental fees. The Comptroller confirmed that's correct -- booth rentals are not taxable.

3. Autograph tickets. The producer contracts with players, athletes, and sports celebrities to sign autographs at the show, then sells the general public a separate "autograph" ticket (on top of general admission) for the chance to get an item signed. The Comptroller confirmed this charge IS taxable, because autographing a tangible item -- their example is a baseball or T-shirt -- counts as remodeling tangible personal property, a taxable service. On the producer's own cost side: what it pays the celebrity to sign items the producer intends to resell is treated as a nontaxable purchase for resale (the celebrity's signing fee isn't taxed to the producer), with sales tax instead collected once, on the final sale price of the autographed item to the end customer.

What this means for you

Event and show producers charging general admission

Admission to a themed collectibles/memorabilia show (and by extension, similar amusement-type events) is taxable in Texas -- price your tickets accordingly.

Event producers renting exhibit space to vendors

Booth/exhibit-space rental fees you charge vendors are not taxable, distinct from your admission revenue.

Event producers offering paid celebrity autograph sessions

A separate charge for getting an item autographed is taxable as "remodeling" the item -- but if you're paying the celebrity to sign items you intend to resell to the public, that payment to the celebrity is itself a nontaxable resale purchase, with tax collected once at the final retail sale.

Common questions

Q: Is admission to a memorabilia or collectibles show taxable in Texas?
A: Yes -- it's treated as an amusement service, taxable the same way many other paid-admission events are.

Q: Do I need to charge sales tax on vendor booth rentals at my event?
A: No, per this letter -- booth rental charges to exhibiting vendors are not taxable.

Q: Is a separate charge for a celebrity autograph taxable?
A: Yes -- autographing an item is treated as taxable "remodeling" of tangible personal property.

Q: If I pay a celebrity to autograph items I plan to resell, do I owe tax on that payment?
A: No -- that's a nontaxable purchase for resale. Tax is collected once, when you sell the autographed item to the end customer.

Q: Does this letter bind the Comptroller for other show producers?
A: No -- this is an informal 2001 letter answering one taxpayer's specific business model, not a modern Private Letter Ruling or General Information Letter, and it cannot be relied on by anyone else.

Citations and references

No statutes or rules were cited by section number in this letter; it applies the Comptroller's general framework for taxable amusement admissions, nontaxable venue/booth rentals, taxable remodeling of tangible personal property, and standard resale-purchase mechanics.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200108437L

Original ruling text

August 28, 2001

Dear **:

Thank you for your recent letter regarding your client's business and Texas
sales tax.

You stated that your client is a producer of sports collectibles and
memorabilia shows in Texas. The general public pays an admission fee to gain
entrance to the show. The purchase price of the general admission includes
sales tax. You asked if your client is correct to charge Texas sales tax on
general admission tickets to its collectible and memorabilia shows.

Response: Yes. Texas sales tax is due on admissions to amusement services
such as a sports collectibles and memorabilia show in Texas.

You also stated that outside vendors of sports and sports-related merchandise
are present at the shows. These vendors pay a booth rental to your client for
exhibit space at the site of the show. No tax is charged to the vendor for
booth rental. You asked if your client is correct not to charge Texas sales
tax on booth rentals at the shows.

Response: Your client is correct not to collect Texas sales tax on charges for
booth rentals at the shows.

Additionally, you stated that your client contracts with players, athletes and
other sports celebrities to sign autographs at its shows. Your client sells a
separate "autograph" ticket that the general public may purchase after gaining
admission to the collectibles show. You asked if the charge for the
"autograph" ticket is subject to Texas sales tax.

Response: Yes. A charge to remodel tangible personal property (autographing a
baseball or a
T-shirt) is subject to Texas sales tax.

The amount paid to the player or celebrity to autograph items that they will
resell is a purchase for resale and is not subject to Texas sales tax. Texas
sales tax must then be collected on the sale price of the autographed items.

This opinion is based on the facts presented. Additional or different facts
may yield different results.

You may call me toll free 1-800-531-5441, extension 5-9787, if you have any
questions or need more information. The direct line is 512/305-9787. You may
also write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Philip Knisely
Tax Policy Division