Sales Tax State Activity Update - October 2004

Fore! Revenues From Golf Lessons May Be Taxable

In a letter ruling issued by the Texas Tax Policy Division, it concluded that golf lessons given by staff of a privately owned golf course were not taxable. Conversely, lessons given by a non-employee who gave the golf course a percentage of his revenues are taxable. It was ruled that the payments the golf course received were for the use of the facility and therefore represent a taxable amusement service. It was also ruled that the same service would not be taxable if given on a course owned by a municipality or other exempt entity as outlined under Texas Tax Code 151.3101.

This letter ruling is available at: http://aixtcp.cpa.state.tx.us

(Texas Comptroller of Public Accounts, Letter Ruling, No. 200408772L 08/27/04)

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