Ezel / Tax Rulings / TX
TX 8801L0867C01 Sales and/or Use Tax (State,Local,MTA) 1988-01-28

Were membership dues collected by a professional or business Breakfast Club taxable as amusement services?

Short answer: Yes. Texas treated the dues as taxable amusement services. The letter said the dues were exempt only if the organization or association was nonprofit.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
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 January 1988 Texas Comptroller letter applying Rule 3.298. It says the opinion may change if the facts differ. The letter does not describe the club's activities beyond its name or define what nonprofit status or documentation was required. Amusement-service, membership-dues, club, and nonprofit exemptions may have changed; verify current law. STAR documents may no longer represent current policy even when not marked superseded. 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

The Comptroller said membership dues collected by the Breakfast Club were taxable as amusement services.

The dues were exempt only if the organization or association was nonprofit. The letter referred to Rule 3.298 but did not provide more facts about the club or the nonprofit qualification.

What this means for you

The historical answer classified the dues based on the club facts presented and carved out nonprofit organizations or associations. It does not explain the current requirements for proving nonprofit status.

Common questions

Were the Breakfast Club dues taxable? Yes.

What exemption did the letter identify? The dues were exempt if the organization or association was nonprofit.

Citations and references

  • 34 Tex. Admin. Code Rule 3.298 — historical amusement-services rule.

Source

Original ruling text

January 28, 1988

Dear ***:

On behalf of Mr. Bullock, I hope you'll accept my apology for the delay
in
answering your question involving changes in the sales tax law. This
isn't the way we normally do business.

Our people were, and still are, swamped by a deluge of inquiries as they
attempted to interpret provisions of the new law and draft rules which
would not adversely impact businesses. In many instances, an answer to a
question just wasn't available when the question arrived.

Thank you for your letter requesting the taxability of "Amusement
Services".

Question: Are the funds collected as "membership dues" by the "Breakfast
Club" taxable as amusement services?

Answer: Yes the dues would be taxable as amusement services. The dues
would be exempt only if the organization or association is a non-profit
corporation or association. Rule 3.298, copy attached.

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,

Tom Soto
Tax Policy Division

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