Which fees, sales, and services at a private hunting and fishing club are subject to Texas sales tax?

Plain-English summary

A private, for-profit hunting and fishing club — whose facilities are used by members, their guests, and occasionally other non-member groups — asked the Comptroller to sort out the sales-tax treatment of fourteen different fees, sales, and services. The Comptroller went through them one by one:

Not taxable:

• Memberships, annual dues, and hunting/fishing fees (items 1–3).
• Hunting and fishing guide services (item 4).
• Releasing birds the club raised or purchased for members to hunt (item 5) — this is a nontaxable service. Separately, the club may buy the birds tax-free only if they are a species that ordinarily constitutes food for human consumption; other types of birds are taxable when the club buys them.
• Boarding or training members' dogs (item 9).
• Cleaning members' game by club staff (item 14).

Taxable:

• Shotgun shells (item 6) and logo hats and other merchandise (item 7).
• Meals (part of item 8) are subject to sales tax.
• Skeet range use (item 13) and other amusement services.

Depends on the facts:

• Lodging (item 8): lodging for a member of a private club is not taxable under the Hotel Occupancy Tax statute, but lodging for guests is taxable.
• Commission on selling a member's dog (item 10): under Rule 3.352 (brokers and factors), the commission is part of the dog's selling price and is therefore taxable — unless it is simply a fee the seller (not the purchaser) pays directly to the club.
• Ground facilities for dog trials or contests (item 11): the Comptroller needed more detail. Generally, fees for admission to dog shows, races, or other sporting events are taxable amusement services, but entry fees to participate are not taxable if they meet the guidelines in subsection (c) of Rule 3.298.
• Lodge facilities for dinners, receptions, reunions (item 12): also fact-dependent. A pure rental of real property is not taxable, but if the club provides catering, lodging, meals, equipment rental, amusement services, and the like, the charge may be taxable.

What this means for you

Private clubs and membership organizations

The core "right to use the club" charges — memberships, dues, and activity fees like hunting, fishing, and guiding — are not taxable, and neither are services performed on members' property (boarding/training dogs, cleaning game). But once you sell tangible goods (shells, logo merchandise) or prepared meals, or provide amusement (skeet, event admissions), tax applies.

Watch the member-vs-guest line on lodging

Member lodging at a private club is exempt under the Hotel Occupancy Tax statute, but guest lodging is taxable. Track who is staying so you charge correctly.

Bundled event and facility charges

Renting bare real property for an event is not taxable, but the moment you bundle in catering, meals, equipment, or amusement, the charge can become taxable. Break out and document the components, because a single lumped fee for a mixed package invites full taxation.

Commissions and participation fees

A sales commission folded into the price of goods (like a member's dog) is taxable under Rule 3.352 unless it is a separate seller-paid fee. Participation entry fees can escape amusement tax only if they meet Rule 3.298(c); spectator admissions do not.

Common questions

Q: Are hunting and fishing club memberships and dues taxable in Texas?
A: No. Memberships, annual dues, and hunting/fishing fees are not taxable, and neither are guide services.

Q: Is lodging at the club taxable?
A: It depends who stays. Lodging for a member is not taxable under the Hotel Occupancy Tax statute, but lodging for guests is taxable. Meals are always subject to sales tax.

Q: Is the skeet range or a dog show taxable?
A: Skeet range use is a taxable amusement service. Admission to a dog show or race is generally a taxable amusement service, but a participation entry fee is not taxable if it meets Rule 3.298(c).

Q: Is a commission on selling a member's dog taxable?
A: Yes, as part of the dog's selling price under Rule 3.352 — unless the commission is simply a fee the seller pays directly to the club rather than something built into the purchaser's price.

Q: Can the club buy the birds it releases tax-free?
A: Only species that ordinarily constitute food for human consumption may be bought tax-free; other types of birds are taxable to the club.

Q: Can I rely on this 1988 letter for my own club?
A: Treat it as guidance only. It is based on the specific facts presented and can change with different facts; on the STAR system it binds the Comptroller only as to the taxpayer it was issued to and may no longer reflect current policy.

Citations and references

Rules:

• 34 Tex. Admin. Code Rule 3.352 (brokers and factors; a commission that is part of the selling price of tangible personal property is taxable)
• 34 Tex. Admin. Code Rule 3.298 (amusement services; participation entry-fee exception in subsection (c))

The letter also refers to the Texas Hotel Occupancy Tax statute for the exemption of a private-club member's lodging, without citing a specific section number.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8810L0906C09

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

October 26, 1988

Dear ***:

Thank you for your recent letter concerning the taxability of
various sales and services provided to club members and guests.
You indicated in a telephone conversation with Tom M. Grimes that
the club is a private, for-profit hunting and fishing club whose
facilities are available for use by members, their guests, and
occasionally, other non-member groups.

The taxability of the items you listed is as follows:

1. Sale of memberships - Memberships in hunting and fishing clubs
   and guest fees for hunting and fishing are not taxable.

2. Annual dues - same as #1.

3. Hunting and fishing fees - same as #1.

4. Services of hunting and fishing guides - not taxable

5. Release of birds we have raised or purchased for members to
   hunt - Nontaxable service; birds which ordinarily constitute
   food for human consumption may be purchased tax free, other
   types of birds are taxable.

6. Sale of shotgun shells - taxable

7. Sale of hats and other merchandise with your logo - taxable

8. Lodging and meals - Lodging for a member of a private club is
   not taxable under the Hotel Occupancy Tax statute; however, lodging
   for guests is taxable. Meals are subject to sales tax.

9. Boarding or training of members' dogs - not taxable

10. Commission on sale of member's dogs - Please review the
    enclosed Rule 3.352 on brokers and factors. The commission is a
    part of the selling price of the dog and is therefore taxable,
    unless the commission is simply a fee paid directly to the club
    by the seller, not the purchaser.

11. Use of ground facilities for dog trials or contests - This is
    not clear; please provide a complete description of what this fee
    covers. Generally, fees for admission to dog shows, races or other
    sporting events are taxable amusement services. Entry fees to parti-
    cipate in an event if the fee meets the guidelines in section (c) of
    rule 3.298 are not taxable.

12. Use of lodge facilities for dinners, receptions, reunions, etc.
    Again, this is not entirely clear. If you mean rental of real pro-
    perty, the fee is not taxable. If you provide a catering service,
    lodging, meals, rental of equipment, amusement services, etc. then
    this fee may be taxable.

13. Use of skeet range - taxable amusement services

14. Cleaning of members' game by our staff - not taxable

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 any additional questions.
You may write me, call toll-free 1-800-531-5441 from anywhere in the
United States or phone 512/463-4685.

Sincerely,
Julie Pesl
Tax Correspondence