Were nightclub and bar admission charges taxable when the venue had a dance floor but no live entertainment?

Plain-English summary

The February 22, 1985 letter said the Comptroller's January 30 answer was wrong. Admission charges to nightclubs and bars with dance floors were subject to sales tax even when there was no live entertainment.

The attached January letter had said the same admission charge was not taxable when customers entered for drinking and dancing without a live band. The later February correction is the operative answer within this record.

STAR's subject metadata mentions DJs and bands, but the reproduced correction establishes only that a dance-floor admission was taxable even without live entertainment. It does not separately classify particular performers.

Common questions

Did the absence of a live band make the cover charge nontaxable? No. Which answer controls within the record? The February 22 correction. Did the body separately analyze DJ charges? No.

Citations and references

The reproduced letters cite 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/8502L0627E02

Original ruling text

February 22, 1985

Dear ***:

I have reviewed my letter of January 30, regarding taxable admissions
and found that I was in error.

Charges for admission to nightclubs and bars which have dance floors
are subject to sales tax even though there may not be live entertainment.

If you have any questions or need more information, Please call us at
1-800-252-5555 toll free from anywhere in Texas. You may write us at the
Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

January 30, 1985

Dear ***:

Thank you for your recent letter which is restated below.

I spoke to *** about collecting sales tax for
admission charged a customer into a night club or bar for drinking
and dancing without a live band. He informed me that this type of
entertainment is not taxable. Please verify this in writing and
direct all correspondence to the above address.

Response: The admission charge is not taxable.

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

If we can be of further help, please call us at 1-800-252-5555 toll free
from anywhere in Texas. You may write us at the Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division