Ezel / Tax Rulings / TX
TX 8511L0683G08 Sales and/or Use Tax (State,Local,MTA) 1985-11-21

Was electricity used to run flight simulators taxable, and was flight instruction a taxable service or amusement in Texas?

Short answer: Simulator electricity was taxable commercial use, but flight instruction was neither a taxable service nor a taxable amusement.

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This page answers the general question as of 1985. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1985
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 1985 Texas Comptroller taxpayer-response letter applying then-current natural-gas-and-electricity, carrier, and amusement rules to flight simulators and flight instruction. It expressly says different facts could change the opinion. Current utility, predominant-use, aviation-training, simulator, carrier, amusement, and sales-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded. Letters on STAR can support detrimental reliance only for the taxpayer to whom the letter was directly issued under 34 Tex. Admin. Code Rules 3.1 and 3.10. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice.
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

Rule 3.295 treated electricity furnished for commercial use, including personal or professional services, as taxable. Flight simulators did not fit the letter's listed noncommercial uses, so the electricity used to operate them was taxable.

Flight instruction itself was not a taxable service or amusement.

Common questions

Was simulator electricity taxable? Yes.

Why? The letter classified it as commercial use rather than one of Rule 3.295's noncommercial uses.

Was flight instruction taxable? No, either as a service or an amusement.

Citations and references

  • Texas Comptroller Rule 3.295 — natural gas and electricity.
  • Texas Comptroller Rule 3.297 — carriers.
  • Texas Comptroller Rule 3.298 — amusement services.

Source

Original ruling text

November 21, 1985

Dear ***:

Thank you for your letter of November 7. 1985, concerning tax on the
electricity used to run flight simulators and flight instruction.

I am enclosing State Sales and Use Tax Rule 3.295, Natural Gas and
Electricity, 3.297, Carriers and 3.298, Amusement Services.

Under Rule 3.295, sales tax is due on the furnishing of natural gas and
electricity for commercial use. Commercial use includes providing
personal or professional service. Noncommercial uses outlined in the rule are
residential; exploration, production or transportation of material
extracted from the earth; agriculture; electrical processes; manufacturing and
processing. Flight simulators do not fall in the definition of noncommercial
use. Tax is due on the electricity used to run flight simulators.

Flight instruction is not a taxable service or amusement.

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

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

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