Were a theme park's school curriculum program and behind-the-scenes tour taxable amusement services?

Plain-English summary

The Comptroller initially classified both a theme park's school program and behind-the-scenes animal-care tour as taxable amusement services. After the park supplied more facts, the Comptroller changed the school-program result but left the tour result in place.

The school program coordinated with school-district science curricula, varied by student age and grade, supplied teacher and student materials, used certified teachers, and was paid for by school check. On those facts, student fees for the school program were not taxable.

The behind-the-scenes program remained a taxable amusement service. It consisted of a tour explaining the care and feeding of animals and fish, and the later letter did not change that classification.

Common questions

Was the school program taxable? No after the additional educational facts were considered.

Was the behind-the-scenes tour taxable? Yes.

Why did the school result change? The revised facts showed a curriculum-coordinated program with certified teachers, instructional materials, age-specific content, and school payment.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8901L0921D06

Original ruling text

January 23, 1989

Dear **:

This letter is in response to our January 18, 1989 telephone conversation
regarding the school program and the behind-the-scene programs that were
classified as amusement services in my January 13, 1989 letter.

You provided the following information on the school program:

1. The program is coordinated with the various ** school districts'
   science curriculum;

2. The program subject matter varies based on the age of the students and the
   grade level;

3. Hand-out materials covering the program materials are given to the classroom
   teachers beforehand;

4. Hand-outs are given to the students during the program;

5. The personnel that give the instructions are certified teachers hired by
   THEME PARK and;

6. The fees for the students to attend the sessions are paid for by a check
   issued by the school.

The school program is not an amusement service. The fees paid for students to
attend the program are not taxable.

The behind-the-scene program is still considered to be 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 or need more information, you may call toll-free
1-800-252-5555, ext. 3-4683. The regular number is 512/463-4600. You may write
me at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,

Eddie C. Washington
Tax Correspondence

January 13, 1989

Dear **:

Thank you for your letter of January 4, 1989, requesting an opinion on the
taxability of a certain programs sponsored by CORPORATION A.

The programs in question are the school program and the behind the-scene
program for any individual. A teacher employed by THEME PARK provides the
children with facts and information about sea faring mammals and fish. The
behind-the scene program consists of a tour to certain areas of THEME PARK to
educate the individual about the care and feeding of animals and fish.

The programs are taxable as amusement services. The exemption for activities
that are instructional in nature are those which prepare an individual to
participate in or perform the activities. These programs do not meet the
definition of a nonamusement service under section (a) (2) of Rule 3.298
(Amusement Services). However, the activities clearly are amusement services as
defined under section (a)(1)(B)(i) and (E)(i) of the rule.

The type of instructional activities excluded from the amusement services
exemption are those that are systematic and which have a regularly scheduled
curriculum, instructors, and students at a location where educational
activities are regularly conducted.

Although museum curators and zoo guides provide instructions or information to
persons about the displays and animals respectively, the activities nonetheless
are defined as amusement services.

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, you may call toll-free
1-800-252-5555, ext. 3-4683. The regular number is 512/463-4600. You may write
me at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,

Eddie C. Washington
Tax Correspondence