Were a doll guild's membership dues, public show admissions, and vendor display-space charges taxable?

Plain-English summary

The Comptroller could not give one unconditional answer because the requester did not say whether the doll guild was nonprofit or for-profit.

Membership dues and fees were nontaxable if the organization was a hobby club or qualified for an exemption under Rule 3.298(g)(1), including the nonprofit Section 501(c) category referenced in the letter.

Admission charged to the public for an exhibition, display, arts-and-crafts show, or similar event was a taxable amusement charge when the organization was for-profit or did not qualify for the exemption. Charges to individual vendors for display areas at the doll shows were not taxable.

What this means for you

Hobby clubs and guilds

Establish and document the organization's status before deciding how to tax dues and public admission. The letter's answer was expressly conditional.

Show organizers

Public admission and vendor booth space received different treatment. Do not combine them into one tax conclusion.

Common questions

Were the guild's membership dues exempt? Only if it qualified as a hobby club or under the cited exemption.

Was public admission taxable? Yes, if the guild was for-profit or otherwise nonexempt.

Were vendor display spaces taxable? No.

Did the Comptroller determine the guild's status? No. The request omitted that fact.

Citations and references

• 34 Tex. Admin. Code Rule 3.298(g)(1) (amusement-service exemptions)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9201L1152A09

Original ruling text

January 15, 1992

Dear **:

Your letter concerning the taxability of membership dues and fees
charged to members of your organization and of admission charges
to doll shows put on by your group has been assigned to me for
review and response. I apologize for the delay in responding.

You did not indicate if your guild is nonprofit or for profit.
If you organization is a hobby club or qualifies under one of
the exemptions listed in section (g)(1) (i.e., nonprofit, Sec. 501(c)
under the IRS code, etc., ) of the enclosed Rule 3.298, Amusement
Services, it is not required to collect sales tax on dues and
fees charged to members for membership in the guild.

An admission charged to the public for an exhibition, display, or
arts and craft show, etc., is a taxable charge for an amusement
service if your organization is for profit or is not exempted
under section (g)(1) of the enclosed Rule 3.298. The charge to
individual vendors for display areas in your doll shows is not
taxable.

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 the Tax Administration Division.

Sincerely,

Gilbert Zamora
Tax Administration Division