Does a little league baseball association have to collect sales tax on concession stand sales of food, candy, and soft drinks?

Plain-English summary

A taxpayer wrote to the Comptroller asking whether concession stand sales made on behalf of a little league baseball association are subject to sales tax. The Comptroller answered that associations supporting athletics for children under 19 are exempt from paying and collecting sales tax on food, candy, and soft drink sales — but only if all the proceeds go to the organization, and only if the sales are made by association members rather than hired employees or non-members.

What this means for you

Youth athletic associations (like Little League)

If your organization supports athletics for children under 19, concession stand sales of food, candy, and soft drinks can be made tax-free, as long as all proceeds go back to the organization and the people making the sales are members of the association — not paid staff or outsiders.

Associations relying on hired workers or non-members to staff concessions

The exemption does not extend to sales made by hired employees or by people who are not members of the association. If your concession stand is staffed by paid workers or outsiders, this exemption would not apply based on the facts described in this letter.

Common questions

Q: Does a little league association have to charge sales tax on food, candy, and soft drinks sold at its concession stand?
A: No, as long as it supports athletics for children under 19, all proceeds are used for the organization, and sales are made by association members (not hired employees or non-members).

Q: Who can staff the concession stand for the exemption to apply?
A: Members of the association. Sales made by hired employees or by non-members do not qualify.

Q: Can I rely on this letter for my own organization's situation?
A: No. This opinion is based on the facts presented to the Comptroller, and if there are additional or different facts, the opinion may change. It is a detrimental-reliance protection only for the taxpayer who received it.

Citations and references

No specific statutes or administrative rules are cited in the body of this letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9602L1396G13

Original ruling text

February 29, 1996

Dear **:

In your letter, you asked about the taxability of concession sales for the
little league baseball association.

Associations that support athletics for children under 19 are exempt from
paying and collecting sales tax on food, candy and soft drink sales, when all
the proceeds are used for the organization. Sales cannot be made by hired
employees or by non-members of the association.

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

You may call me toll free at 1-800-531-5441 extension 50892. The direct line is
512/475-0892. You may also write to Tax Policy Division, Comptroller of Public
Accounts.

Sincerely,

John J. Fitzgibbons, CPA
Tax Policy

NOTE: Previous Accession Number 9602018L