Ezel / Tax Rulings / TX
TX 8701L0787F09 Sales and/or Use Tax (State,Local,MTA) 1987-01-19

Were fees for performing plays or musicals, ticket admissions, and optional audience donations subject to Texas sales tax?

Short answer: The performance fee charged to a sponsoring group was not taxable. Tickets were generally taxable unless sold by a nonprofit or exempt group, while truly optional donations were not taxable.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 1987 Texas Comptroller letter distinguishes a performer's fee to a sponsoring group from ticket admissions and truly optional donations. Performing-arts, amusement, admission, nonprofit, exemption, donation, ticketing, marketplace, and local-tax rules may have changed or differ for other arrangements. STAR documents may no longer represent current policy even when not marked superseded. Identities 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

The Texas Comptroller said a fee charged to a nonprofit or for-profit group for performing plays or musicals was not taxable.

Admission charges or tickets to the event were taxable unless the group selling the admissions was nonprofit or sales-tax exempt. Donations or offerings were not taxable when they were not a condition of entry—meaning people who gave nothing were still admitted.

What this means for you

The performer contract, audience ticket, and voluntary donation were three different transactions. A nontaxable performance fee did not make the event's admissions nontaxable, and calling a required payment a donation would not satisfy the stated voluntary-payment condition.

Common questions

Was the performing group's fee taxable? No.

Were tickets taxable? Generally yes, unless the seller was nonprofit or sales-tax exempt.

Were donations taxable? Not if they were optional and non-donors were admitted.

Citations and references

  • The letter cited no numbered statute or Comptroller rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller January 19, 1987

Dear ***:

Thank you for your letter of January 6, 1987, concerning your sales tax
responsibilities.

The fee you charge to a group, whether nonprofit or for profit, for
performing plays or musicals is not taxable. The charge made for
admission
(tickets) to the event is taxable unless the group selling the admissions
is
nonprofit or sales tax exempt.

If you accept donations or offerings, not as a condition for admittance,
the
donations or offerings will not be taxable. This means that persons who
do
not make a donation are still admitted.

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
512/463-4600.

Sincerely,
Eddie C. Washington
Tax Policy Section
Tax Administration Division

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