Ezel / Tax Rulings / TX
TX 8806L0893D08 Sales and/or Use Tax (State,Local,MTA) 1988-06-29

Does Texas tax an event ticket based on where the ticket is sold or where the amusement event occurs?

Short answer: Texas treated the event's location as decisive. A Texas sale for a Texas event was subject to sales tax on the ticket's face value and convenience charge; a Texas sale for an out-of-state event was not taxable; and an out-of-state sale for a Texas event was subject to use tax on both amounts. Local tax followed the event location.

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 an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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

Texas answered three ticket-agency scenarios by focusing on where the amusement event occurs:

  • A ticket sold in Texas for a Texas event was subject to sales tax on both the face value and convenience charge.
  • A ticket sold in Texas for an event outside Texas was not subject to tax on the admission.
  • A ticket sold outside Texas for a Texas event was subject to use tax on the face value and convenience charge. A seller engaged in business in Texas under § 151.107 had to collect that use tax.

The letter also said local taxes were based on the performance or event location.

What this means for you

Ticket agencies and event platforms

Do not classify the transaction solely by where the order is taken or the ticket is mailed. Under this letter, a Texas event creates Texas tax exposure even when the sale occurs outside the state.

Promoters and venues

Both the admission price and a convenience charge were included in the taxable amount for a Texas event. Local tax followed the event location.

Common questions

Q: Is a Texas sale for an out-of-state event taxable?
A: No. The letter says sales tax is not due on admission to an amusement event occurring outside Texas.

Q: What if a Texas-event ticket is sold outside Texas?
A: Use tax is due on the ticket's face value and convenience charge. A seller engaged in business in Texas must collect it.

Q: Where is local tax sourced?
A: The letter says local taxes are based on where the performance or amusement event occurs.

Q: Can I rely on this 1988 letter today?
A: Treat it as historical guidance. It applies the law to the stated ticket-sale scenarios and may not reflect current rules.

Citations and references

  • Sec. 151.107, as cited for when a seller is engaged in business in Texas

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

June 29, 1988

Dear *:

Thank you for your June 22, 1988 request for information regarding the
sale
of tickets to amusement events by ticket agencies.

Question I
A sale is made in Texas for an event to be held in Texas.

Answer: Sales tax is due on the Face Value of the ticket and the
convenience charge.

Question II

A sale is made in Texas for an event to be held outside of Texas.

Answer: Sales tax is not due on the sale of an admission to an
amusement service if the event takes place outside Texas.

Question III

A sale is made outside of Texas for an event to be held in Texas.

Answer: Use tax is due on the face value of the ticket and the
convenience charge. If the seller is engaged in business in Texas, as
defined in Sec. 151.107 of the sales tax law, then the seller must col-
lect the use tax from the purchaser.

Local taxes are based on the location where the performance or amusement
event occurs.

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 our
toll-free
number 1-800-531-5441. The regular number is 512/463-4600. You may
write me
at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Julie Pesl
Tax Correspondence

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