Ezel / Tax Rulings / TX
TX 8709L0832C07 Sales and/or Use Tax (State,Local,MTA) 1987-09-21

Was a lump-sum charge for concert lighting, sound, equipment setup, operation, and removal taxable in Texas?

Short answer: No. The service remained nontaxable when one lump-sum amount covered company-owned equipment and the personnel who set up, operated, and removed it.

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 is a taxpayer-specific September 1987 Texas Comptroller letter about a lump-sum entertainment-production service using provider-owned equipment and personnel. It says the opinion may change if the facts differ. The answer is historical and does not decide separately stated rentals or tangible-property transfers; verify current law. STAR documents may no longer represent current policy even when not marked superseded.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 provider supplied its own lighting, sound-amplification, and stage-production equipment plus labor to set it up, operate the production, and remove it. No tangible product was sold or transferred.

The Comptroller said the service was not taxable when one lump-sum charge covered the equipment and operating personnel, including under the revised statute.

What this means for you

The historical result depended on an integrated lump-sum production service with provider-operated equipment and no property transfer. The letter does not decide a bare rental or separately stated equipment charge.

Common questions

Was the lump-sum production service taxable? No.

Whose equipment was used? The provider's.

Was tangible property transferred? No.

Citations and references

  • No statute or rule number is cited in the ruling text.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

September 21, 1987

Dear *:

Thank you for your recent letter which is restated in part with response
below.

Situation: Our company is involved in the entertainment industry. Our
business is principally concerned with providing lighting, sound amplification,
and or stage production services for entertainment events. These services
involve providing
equipment owned by our company and the labor to set up the equipment, run
the production, and remove the equipment from the site. There is no sale or
transfer of any tangible products during the transaction.

Response: The services you mention will not be taxable if you charge a
single (lump-sum) amount which covers equipment and personnel to operate it.
This will also be the case under the revised statute.

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 me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512-463-4600. You may write me at the Tax Policy Division.

Sincerely,
AL Van Allen
Tax Policy Division

Get today's answer for your situation

You just read a 1987 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.