Ezel / Tax Rulings / TX
TX 8812L0922G10 Sales and/or Use Tax (State,Local,MTA) 1988-12-27

Was a nonrefundable $1 admission fee to a self-service auto-wrecking yard taxable as an amusement service?

Short answer: No. The admission fee was not a taxable amusement service when it was nonrefundable and could not be applied to a purchase.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

The self-service auto-wrecking yard charged a nonrefundable $1 admission fee. Customers could not apply the fee toward any later purchase.

The Comptroller said the admission charge was not a taxable amusement service.

Common questions

Was the $1 admission fee taxable? No.

Could customers credit it against a purchase? No.

Did the letter address tax on parts bought inside? No. It addressed only the admission fee.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

December 27, 1988

Dear **:

Thank you for your letter concerning the taxability of a one-
dollar admission fee to a self-service auto wrecking yard.
According to your letter, the one-dollar admission fee is non
refundable and may not be applied to any purchases. The one-
dollar admission fee is not a taxable amusement service.

This opinion is based on the facts presented. If there are
additional or different facts, the opinion may change.

If you have any questions, please contact Tax Correspondence. You
may call toll free 1-800-252-5555, or our regular number is
512/463-4600. My extension is 3-4658.

Sincerely,
Sherry Buckley
Tax Correspondence

Get today's answer for your situation

You just read a 1988 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.