Were golf-cart shed rental charges taxable at for-profit and nonprofit Texas country clubs?

Plain-English summary

The Comptroller clarified that country-club charges for golf-cart shed rentals were taxable for both for-profit and nonprofit clubs.

For-profit club charges had been taxable since October 2, 1984. The tax applied whether the shed charge was separately stated or combined with other charges and assessments.

For nonprofit country clubs, shed rental charges became taxable on October 1, 1991—the date the letter said nonprofit club dues, initiation fees, and other charges for special privileges became subject to sales tax.

What this means for you

Country clubs

Separately listing golf-cart storage did not remove it from tax. The letter treated the shed charge as taxable regardless of billing presentation.

Accountants and tax professionals

This is a historical 1992 letter with specific effective dates. STAR warns generally that older documents may no longer represent current policy, so verify today's rules before relying on the dates or classifications.

Common questions

Were for-profit club shed rentals taxable? Yes, from October 2, 1984, according to the letter.

Were nonprofit club shed rentals taxable? Yes, effective October 1, 1991.

Did separately stating the shed charge make it nontaxable? No.

Citations and references

The letter cited no specific statute or rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9202L1164A01

Original ruling text

February 27, 1992

Dear **:

** from our Dallas East Audit Office has asked that
we write you to clarify our position on the taxability of golf cart
shed rentals for both for-profit and non-profit country club.

A charge by a for-profit country club for golf cart shed rentals
has been taxable since October 2, 1984. The charge is taxable
whether or not the charge is separately stated from other charges
and assessments.

A charge by a non-profit country club for golf cart shed rentals is
taxable effective October 1, 1991. October 1, 1991, is the date
non-profit country club membership dues, initiation fees, and other
assessments and fees charged for special privileges in non-profit
country clubs became subject to sales tax.

This opinion is based on the facts presented. If there are
additional or different facts, the opinion may change.

If you have any additional questions or need more information, you
may call me toll free at 1-800-252-5555, extension 3-4633. The
regular number is 512/463-4633. You may also write to the Tax
Administration Division.

Sincerely,

Wanda Hutcheson
Tax Administration Division