Ezel / Tax Rulings / TX
TX 8409L0589E05 Sales and/or Use Tax (State,Local,MTA) 1984-09-05

Were green fees and annual passes charged by a city-owned municipal golf course subject to Texas sales tax?

Short answer: No. The Comptroller said no tax was due on the municipal golf course's green fees or annual passes because the city providing the amusement service was an exempt municipality.

Apply this to your situation

This page answers the general question as of 1984. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1984
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

A city asked whether green fees and annual passes to its municipal golf course were taxable.

The Comptroller answered no. The city was an exempt municipality, so no tax was due on either charge for the amusement service.

The ruling body discusses only a municipal golf course. It does not discuss fair admission charges, despite the broader STAR subject label used for discovery.

What this means for you

Municipal golf courses

On the stated facts, the city's exempt status meant its green fees and annual passes were not taxed.

Tax professionals

Ground the result on the identity of the service provider: the ruling expressly relies on the city being an exempt municipality.

Common questions

Q: Were municipal golf-course green fees taxable?
A: No.

Q: Were annual passes taxable?
A: No.

Q: Why was no tax due?
A: Because the provider of the amusement service was an exempt municipality.

Citations and references

The letter does not cite a statute or administrative rule.

Source

Original ruling text

September 5, 1984

Dear **:

Thank you for your letter of August 21, 1984, regarding the taxation of
green fees and annual passes to the municipal golf course.

Since the provider of this amusement service, the City of **,
is an exempt municipality, there will be no tax due on green fees nor
annual passes to the golf course.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have additional questions. You
may write me, call toll free 1-800-252-S555 from anywhere in Texas or
phone 512/475-1931.

Sincerely,

Miss Jeannon Kralj
Tax Policy Section
Tax Administration Division

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