TX 8409L0590A03 Sales and/or Use Tax (State,Local,MTA) 1984-09-07

When were bowling tournament receipts and newly added league teams protected from Texas sales tax by contracts signed before October 2, 1984?

Short answer: Bowling receipts under a tournament contract signed before October 2, 1984 were exempt if the contract specified the price, date, location, and similar terms. Teams added to a league after October 1 received the same exemption as existing teams when the bowling-center contract already allowed that expansion.

Apply this to your situation

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

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 Legal Services Division answered two transition questions about sales tax on bowling receipts.

Tournament contracts: Bowling receipts were exempt when the bowling center and tournament signed a contract before October 2, 1984 that specified the bowling price, date, location, and similar terms.
League expansion: New teams added after October 1 received the same exemption as existing teams if the contract between the bowling center and league provided for expansion.

What this means for you

Bowling centers and tournaments

A pre-October 2 contract had to specify the bowling price, date, location, and similar tournament terms.

Expanding leagues

The existing contract had to authorize adding teams for the new teams to receive the same treatment.

Common questions

Q: Were all bowling tournaments exempt?
A: No. The letter addressed qualifying contracts signed before October 2, 1984.

Q: What terms did the tournament contract need?
A: Price, date, location, and similar information described in the letter.

Q: Could a league add exempt teams later?
A: Yes, if its contract with the bowling center provided for expansion.

Citations and references

The letter does not cite a statute or administrative rule.

Source

STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
Opinion: https://star.comptroller.texas.gov/view/8409L0590A03

Original ruling text

September 7, 1984

Dear **:

You raise two questions concerning sales tax on receipts for bowling:

How are tournaments treated?

Answer: Receipts for bowling generated where there are contracts between
a bowling center and a tournament which specifies the terms of the
tournament relating to the price of bowling, date, location and other
information similar to the league contracts previously discussed, will be
exempt from sales tax if signed prior to October 2, 1984.

What happens to leagues that increase the number of teams after
October 1, 1984?

Answer: The new teams will be exempt in the same manner as the old teams
if the contract between the bowling center and the leagues provide for
such expansion of teams.

Please feel free, as always, to contact me if I may be of further
service.

Sincerely,

Robert L. Frederick
Director of Hearings
Legal Services Division

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