Which member and guest charges at a nonprofit Texas golf and country club became taxable on October 1, 1991?

Plain-English summary

House Bill 11 made the listed charges taxable for nonprofit country clubs beginning October 1, 1991. The Comptroller's list included monthly dues; locker-fund charges; trail, initiation, guest, range, transfer, green, and golf-or-tennis-club fees; golf-cart, locker, and bag storage; locker rentals; and minimum food charges.

The letter said private for-profit clubs had been required to collect tax on those fees since October 1, 1987. It enclosed Rule 3.298 and legislative updates explaining House Bill 11.

What this means for you

The ruling treated both core membership charges and many separately named golf, storage, guest, and facility charges as taxable amusement-service receipts after the effective date.

Common questions

Were monthly dues taxable? Yes. Were green and range fees taxable? Yes. Were storage and locker rentals taxable? Yes. When did the rule apply to nonprofit clubs? October 1, 1991; the letter identified October 1, 1987 for private for-profit clubs.

Citations and references

• House Bill 11
• 34 Tex. Admin. Code Rule 3.298

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9112L1152B08

Original ruling text

December 16, 1991

Dear *****:

Your letter concerning the tax changes brought about by House Bill
11 has been assigned to me for review and response. I appreciate
your patience and apologize for the delay in responding.

Specifically, you would like to know if the following items are
subject to sale tax (all apply to a non-profit golf and country club):

Charges to Members or Guests

Monthly Dues - Taxable
Locker fund Charges - Taxable
Trail Fees - Taxable
Initiation Fees - Taxable
Guest Fees - Taxable
Range Fees - Taxable
Golf Cart Storage - Taxable
Transfer Fees - Taxable
Locker Rentals - Taxable
Minimum Food charges - Taxable
Bag Storage Charges - Taxable
Green Fees - Taxable
Golf/Tennis Club Dues - Taxable

The above-noted charges are taxable effective October 1, 1991,
for non-profit country clubs. For private for-profit clubs,
these fees were taxable effective October 1, 1987.

I have enclosed a copy of Rule 3.298, Amusement Services along
with copies of our Legislative Updates that summarize and explain
the changes brought about by HB 11.

This opinion is based on the facts presented. Other facts though
similar may provide a different result.

If you have other questions or need more information, you may
call 512/463-4600, or 1-800-252-5555 from outside Austin. You
may write to Tax Administration Division.

Sincerely,

Gilbert Zamora
Tax Administration Division