Were guided educational river trips in Texas taxable even when they taught customers about river geology and botany?

Plain-English summary

A Big Bend outfitter argued that its guided Rio Grande trips educated customers about the river, geology, and botany. The Comptroller nevertheless classified the trips as taxable amusement services.

The letter explained that Rule 3.298(a)(2)(H) specifically exempted hunting and fishing guide services after a rule amendment effective July 30, 1987. It did not extend that exemption to guided river trips.

What this means for you

Under this 1991 letter, adding an educational purpose did not remove a guided river trip from taxable amusement services. The specific guide exemption identified in the rule was limited to hunting and fishing.

Common questions

Were guided river trips taxable? Yes.

Did education about geology and botany make the trips nontaxable? No.

Which guide services did the rule specifically exempt? Hunting and fishing guide services.

When did the letter say that exemption was added? In a rule amendment effective July 30, 1987.

Citations and references

• Tex. Tax Code § 151.0101(b)
• Comptroller Rule 3.298(a)(2)(H) (hunting and fishing guide-service exemption)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9102L1107G13

Original ruling text

February 14, 1991

Dear **:

Thank you for your recent letter regarding the taxability of
guided river trips.

You stated in your letter that your business is a guided river
outfitter in the Big Bend along the Rio Grande. You stated that
one of the main purpose of your company is to educate clients
about the river, the geology and botany of the area. You specifi-
cally asked why your services are taxable when other guide or
educational services are not taxable.

The legislature imposed tax on amusement services. The
legislature also gave the Comptroller jurisdiction to interpret
the definition of a taxable service, which includes amusement
services. See Texas Tax Code 151.0101(b). Subsection (a)(2)(H) of
Rule 3.298, Amusement Services, specifically exempted hunting and
fishing guide services. This exemption was added in the rule
amendment effective July 30, 1987.

Guided river trips are taxable as an 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 additional information, you may
call me toll free at 1-800-252-5555, extension 5-0330. The
regular number is 512/463-4600, or write me at Tax Administration
Division.

Sincerely,

Bettie U. Peterson
Tax Administration Division