Ezel / Tax Rulings / TX
TX 8806L1137B07 Sales and/or Use Tax (State,Local,MTA) 1988-06-13

Did Texas audit policy treat chairs, tables, refrigerators, and similar property in stadium sky boxes as taxable?

Short answer: No. An internal Texas Comptroller memorandum said chairs, tables, refrigerators, and similar tangible personal property in stadium sky boxes had not been taxed in the audit and were to be treated as exempt like real property. Staff were instructed to follow that policy in similar fact situations.

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 NOT a taxpayer-specific letter ruling. It is an internal Texas Comptroller memorandum published on the State Tax Automated Research (STAR) system for reference. It does not carry letter-ruling reliance protection under 34 Tex. Admin. Code Rules 3.1 and 3.10 and is included only as a historical record of 1988 audit policy. It may no longer reflect current law or Comptroller policy. 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

An internal Comptroller memorandum addressed whether chairs, tables, refrigerators, and similar tangible personal property located in stadium sky boxes had been taxed during an audit. The answer was no: the property had been treated as exempt, like real property.

The memorandum instructed staff to communicate that policy to field auditors, enforcement officers, and tax-assistance personnel and to follow it in all similar fact situations.

What this means for you

Stadium and suite operators

This 1988 staff policy treated the listed sky-box furnishings as part of the real-property setting for audit purposes rather than taxing them as ordinary tangible personal property.

Auditors and tax professionals

This is broader internal guidance, not a ruling issued to a requesting taxpayer. The memo states the result but cites no statute or rule and gives no further legal analysis.

Common questions

Q: Were the sky-box chairs, tables, and refrigerators taxed in the audit?
A: No. The memo says they were treated as exempt like real property.

Q: Was this limited to one audit?
A: The memo instructed staff to follow the policy in all similar fact situations.

Q: Does the memo cite legal authority?
A: No. It does not identify a statute or rule by number.

Q: Can a taxpayer rely on this as a letter ruling?
A: No. It is an internal memorandum, not a taxpayer-specific letter ruling, and it may no longer reflect current policy.

Citations and references

The memorandum states the audit policy but cites no specific Tax Code section or Comptroller rule.

Source

Original ruling text

DATE: June 13, 1988

TO: Jack Roberts

FROM: Dan Pearson

SUBJECT: * Stadium

I looked into whether or not tangible personal property (chairs, tables,
refrigerators, etc.) in the sky boxes at ** Stadium was taxed
during our audit. The answer: it was not. It was treated as exempt, just
like real property.

I have instructed Harold Lee to put the word out to field auditors, and
through Claudia Stravato to enforcement officers and Tax Assistance
folks, that this policy is to be followed in all similar fact situations.

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