How did the Comal County recreation-district tax interact with Texas sales tax in 1989?

Plain-English summary

Article 6079g authorized qualifying riverfront counties to create park districts and impose up to a 5% tax on listed recreational charges, including guide or shuttle services, parking, water-oriented equipment, certain camping or picnic space and river access, and hotel occupancy.

As of this May 1989 letter, the Comal County Water Oriented Recreation District imposed a 2.5% tax on sales or rentals of water-oriented recreational equipment, effective April 1, 1988. That historical rate should not be assumed current.

When an item was also subject to Texas sales tax, the district tax was collected alongside the sales tax. The district tax was not part of the sales or rental price, so Texas sales tax was not charged on the district-tax amount.

Common questions

What district rate did the letter describe? 2.5%, effective April 1, 1988.

Was sales tax charged on the district tax itself? No.

Did the letter say every river-related charge was subject to Texas sales tax? No. It explained that district tax accompanied sales tax when the underlying item was sales-taxable.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8905L0933E04

Original ruling text

May 12, 1989

Dear ***:

This letter is a follow-up to our telephone conversation regard-
ing the tax notification you received from the Comal County Water
Oriented Recreation District.

Article 6079g, Texas Revised Civil Statutes, authorized counties
with frontage on the Guadalupe and Comal Rivers to create and
operate a park district in all or part of the unincorporated area
of the county. The park district is authorized to issue revenue
bonds to provide funds for the operation of the district. The
district is empowered by this law to issue revenue permits and to
impose a tax not greater than five per cent (5%) on the price paid
for recreational guide or shuttle services, parking space, and
any water-oriented recreational equipment, including canoes,
tubes, rafts, sailing craft, fishing tackle, and life jackets.

The district may also impose the tax on the price paid for camping
or picnic space and river access or use costing at least one dollar
($1.00) each day. The district may also impose a tax on the cost
of occupancy of a hotel room.

The taxes imposed by the district are payable by the purchaser or
consumer of the items subject to tax. This means that the park
district tax is collected in conjunction with the sales tax on
rentals or sales of the item subject to sales tax which are list-
ed in paragraph 2. The district tax is not part of the sales or
rental price and the sales tax is not due on the district tax.

The Comal County Water Oriented Recreation District imposes a
two and one-half of one per cent (2 1/2%) district tax on the
sale or rental of water-oriented recreational equipment, fishing,
tackle, life jackets, etc. This tax became effective April 1,
1988. The following is an example of how the recreation district
tax should be collected on the sale or rental of items subject
to the sales tax:

Tube rental $2.00

2.5% Rec. dist. tax .05

6.5% sales tax .13

Total amount due $2.18

Additional questions about the district taxes, permits, reporting
forms, and filing dates should be addressed to:

Administrator
Comal County Water Oriented Recreation District
150 N. Seguin, Room 301
New Braunfels, Texas 78130

Telephone: 512/620-5544

If you have any questions or need more information regarding sales
tax, you may call toll-free 1-800-252-5555. The regular number is
512/463-4600. You may write to Tax Correspondence, Comptroller of
Public Accounts.

Sincerely,

Eddie C. Washington
Tax Correspondence

cc:**
Administrator
Comal County Water Oriented Recreation District
150 N. Sequin, Room 301
New Braunfels, Texas 78130