Steve Holzheauser
1122
Phone
(512) 472-3083
Fax
(512) 476-6989
MEMORANDUM
TO: Karen
Miller
FROM: Steve
Holzheauser
DATE: May 6, 2008
RE: Taxable
or Tax Exempt Bowling Supplies
This
is a memo describing which bowling center supplies are exempt from the sales
tax. It is based on the official
position of the Comptroller’s office as outlined by Kevin Koller, Assistant
Director of Tax Administration.
The
key statute that affects which bowling center items are exempt form sales tax
is Section 151.302 of the Tax Code, which reads:
151.302. Sales for Resale
(a)
The sale for resale of a taxable item is exempted from the taxes imposed
by this chapter
(b)
Tangible personal property used to perform a taxable service is not
considered resold unless the care, custody, and control of the tangible
personal property is transferred to the purchaser of the service.
Mr.
Koller made the following determinations in reference to items of question:
§
Bowling pins: The bowling center must
pay tax.
§
Resurfacing: There is no
exemption when work is just done on an “as needed” basis.
However, a bowling center that had its lanes
resurfaced on a scheduled and periodic basis could claim the exemption.
§
Bowling balls and rental shoes:
The bowling center can buy the balls and shoes tax free.
§
Debit cards for video game operation: A debit card may be used on a video game and
it is a tax free transaction. The same debit card used to get access to
the lane is a taxable amusement service.
§
Socks: Whether rented with the
bowling shoes or sold separately through a vending machine, this item is
taxable.