Texas Tax Code 151.3101 – Amusement Services Exemptions
(a) Amusement services are exempted from the taxes imposed by this chapter only if exclusively provided:
(1) by this state, a municipality, county, school district, special district, or other political subdivision of this state or the United States;
(2) in a place that:
(A) is designated as a Recorded Texas Historic Landmark by the Texas Historical Commission; or
(B) is included in the National Register of Historic Places;
(3) by a nonprofit corporation or association, other than an entity described by Section 501(c)(7), Internal Revenue Code of 1986, if the proceeds do not go to the benefit of an individual except as a part of the services of a purely public charity;
(4) by a nonprofit corporation organized under the laws of this state for the purpose of encouraging agriculture by the maintenance of public fairs and exhibitions of livestock and no individual received a private benefit; or
(5) by an educational, religious, law enforcement association, or charitable organization.
(b) A musical concert performance or other amusement that is not solely for educational purposes is not exclusively provided under Subsection (a)(1) if an entity listed in that subsection contracts with an entity not listed in that subsection for the provision of the amusement.
Terms Used In Texas Tax Code 151.3101
- Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005
(b-1) An amusement service remains exclusively provided under Subsection (a)(3) or (5) if an entity described by Subsection (a)(3) or (5) contracts with another entity not listed in or described by Subsection (a) to provide touring theatrical productions:
(1) subject to a contract with the other entity for:
(A) a term of at least five years; and
(B) at least five presentations each year; and
(2) held at a location either owned by, or leased or licensed for a term of at least one year to, the contracting entity described by Subsection (a)(3) or (5).
(c) In this section:
(1) “Educational organization” includes an entity described by § 61.003(8) or (15), Education Code.
(2) “Theatrical production” means a live staged play, musical play, opera, or ballet.
(d) An amusement service is exclusively provided under Subsection (a)(4) if the amusement service is provided at a “designated facility” defined in § 334.401, Local Government Code, which is also a qualified project as defined in § 351.1015(a)(5)(B) of this code.