Could an amusement park collect and remit tax at its own jurisdiction's rate on tickets consigned for same-price resale?

Plain-English summary

The finance director asked the Comptroller's Tax Policy Section to confirm two earlier oral answers about amusement-park ticket consignments. Wanda Hutcheson confirmed each written answer.

First, when the park consigned tickets and the consignee resold them at the consignee's cost, the park could collect sales tax using the local and state rate in the park's jurisdiction and remit it to the state.

Second, the same answer applied when the consignee resold tickets throughout Texas at the same price owed to the park and the park separately paid an agreed per-ticket sales commission.

STAR's subject metadata refers more broadly to ticket brokers, resale reporting, and credits for tax paid by an original purchaser. The reproduced document does not decide those additional issues, so this page records only the two confirmed consignment scenarios.

Common questions

Did the consignee mark up the tickets in the stated scenarios? No; both questions described same-price resale. Did a separately paid sales commission change the answer? No. Was each answer actually confirmed? Yes; the document marks each one as confirmed by Wanda Hutcheson.

Citations and references

The reproduced document 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/8503L0633D07

Original ruling text

March 14, 1985

Mrs. Wanda Hutcheson
Tax Policy Section
Tax Administration Division
Controller of Public Accounts
State of Texas
Austin, TX 78774

Dear Mrs. Hutcheson:

During two recent telephone conversations, I have requested, and verbally
received from you, clarification of certain amusement tax issues related to
ticket consignment transactions at both AMUSEMENT PARK A and AMUSEMENT PARK B.

I have listed below my questions regarding these tax issues and ask, if you
would please, confirm the answers as presented, by signing in the allotted
space following each answer. A self-addressed envelope is enclosed for your
convenience.

Question 1:

If AMUSEMENT PARK A consigns tickets to a consignee who then resells the
tickets at consignee's cost, can AMUSEMENT PARK A collect the sales tax based
on the local/state sales tax rate in AMUSEMENT PARK A'S jurisdiction and remit
this tax to the State?

Answer: Yes [Answer Confirmed by Wanda Hutcheson]

Question 2:

If AMUSEMENT PARK A consigns tickets to a consignee, who then resales the
tickets throughout the State of Texas (i.e. resells at the same price to be
paid to AMUSEMENT PARK A), and AMUSEMENT PARK A agrees to pay the consignee a
sales commission based on an agreed upon amount per ticket, payable
periodically during or at the end of each year, then, can AMUSEMENT PARK A
collect the sales tax based upon the local/state sales tax rate in AMUSEMENT
PARK A'S jurisdiction and remit this tax to the State of Texas?

Answer: Yes [Answer Confirmed by Wanda Hutcheson]

I am most appreciative of the time you have devoted, and your patience, in
addressing these and other issues on our behalf.

Please let me know if you have any questions regarding the above subject
matter.

Sincerely,

Ronnie Ward
Director of Finance