Ezel / Tax Rulings / TX
TX 8409L0590B01 Sales and/or Use Tax (State,Local,MTA) 1984-09-17

Were entry fees to professional golf tournaments and charity pro-am events taxable when charged by a nonprofit organization?

Short answer: No. Entry fees to both professional golf tournaments and charity pro-am events were not subject to state sales tax when charged by the nonprofit organization, which had to keep written proof of its IRS exemption.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

The Texas Comptroller said entry fees to professional golf tournaments and charity pro-am events were not subject to state sales tax when charged by the nonprofit organization described.

If the organization was exempt for IRS purposes, written proof kept in its records was sufficient to establish and exercise the exemption on tournament entry fees.

The body does not discuss tennis despite STAR's broader subject metadata.

What this means for you

Nonprofit tournament organizers

The historical exemption required nonprofit status and written IRS-exemption proof in the organization's records.

Accountants and tax professionals

Retain the exemption evidence and do not extend the holding beyond the golf and pro-am entry fees decided in the source.

Common questions

Q: Were professional golf tournament entry fees taxable?
A: No, when charged by the nonprofit described.

Q: Were charity pro-am entry fees taxable?
A: No.

Q: What proof was required?
A: Written proof of IRS exempt status kept in the organization's records.

Citations and references

  • The letter cites no statute or administrative rule.

Source

Original ruling text

September 17, 1984

Dear **:

Thank you for your recent letter regarding the taxation of entry fees
to professional golf tournaments and charity pro-am events.

If the ** is a non-profit organization, these entry fees to
both types of tournaments will not be subject to state sales tax. If
your organization is exempt for I.R.S. purposes, maintaining written
proof of such in your records will be all that is necessary to establish
and exercise your exempt status on tournament entry fees.

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 1-800-252-5555 from anywhere in Texas or
phone 512/475-1931.

Sincerely,

Miss Jeannon Kralj
Tax Policy Section
Tax Administration Division

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