What state, city, and MTA sales taxes applied to tickets for traveling carnival rides?

Plain-English summary

All tickets sold and redeemed for the operator's traveling carnival rides were subject to state sales tax and any applicable local tax.

The historical 1% city tax followed where the rides operated. If the city had adopted its sales tax, the operator reported and remitted it in addition to state tax. Rides in a location without city sales tax were subject only to the historical 4.125% state rate.

When rides operated within a Metropolitan Transit Authority, the operator also collected MTA tax and allocated it to the proper authority.

These rates and return mechanics are expressly historical. The letter directed the operator to a Field Service Office for filing assistance.

Common questions

Did city tax follow the operator's home office? No; it followed where the rides operated. What if the operating location had no city sales tax? Only the historical state tax applied. What happened inside an MTA? The operator collected and allocated the MTA tax.

Citations and references

The reproduced letter cites no numbered statute or 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/8502L0616C13

Original ruling text

February 4, 1985

Dear ***:

Thank you for your phone call of February 1, regarding your sales tax
responsibilities regarding operation of your traveling carnival rides
concessions.

Based on your description of the various types of situations in which
you operate the rides and the manner in which the tickets are sold and
the proceeds distributed, all of the tickets sold and redeemed for your
rides are subject to state sales tax as well as applicable local tax.

City sales tax (1%) would be due on tickets sold to the rides based on
where the rides are being operated. If they are operated in a city
that has adopted city sales tax, you would report and remit this tax
(in addition to state tax) on the "city list" sales tax return.
(Please see enclosed brochure, "Sales Tax Rates in Texas"). Tickets for
rides operated in a non-taxing locale would only be subject to state
(4.125%) tax. If you operate rides in any of the Metropolitan Transit
Authorities (MTA), you would be required to collect the MTA tax and to
allocate it to the proper MTA.

It is my understanding you will contact our Field Service Office located
at ***. Our representatives there will show youhow to file these
returns.

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

You may write to the Tax Administration Division.

Sincerely,

Tax Policy
Tax Administration Division