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Skydiving

March 2006

Skydiving facilities provide a variety of services, some of which are subject to Texas sales tax and some of which are not.

Skydiving for fun

Skydiving for a birthday or other special occasion is subject to Texas sales tax as an amusement service. Most of these are done as "tandem" jumps with an experienced skydiver. Please refer to Rule 3.298 "Amusement Services" for additional information.

Skydiving instruction

Skydiving training that includes "ground training" for the purpose of becoming a licensed skydiver (i.e., USPA Accelerated Freefall (AFF) Program) is not subject to Texas sales tax. The training facility owes Texas sales tax on all items that are included in a single charge for the training (i.e., workbooks, videos, CDs, etc.). If the facility makes separate charges for those materials, it must collect Texas sales tax on those separately stated charges.

Videos of skydiving

If the skydiving facility offers videos or DVDs of a student's skydive, that charge is subject to Texas sales tax. The facility can issue its supplier a properly completed Texas resale certificate in lieu of paying Texas sales tax on those items sold to customers.

If the facility used those items for nontaxable training purposes, it owes Texas sales tax when it purchases those items.

Equipment rentals

When the skydiving facility rents equipment separately from a charge for skydiving, it must collect Texas sales tax on the charges for the rentals. The facility can issue a properly completed Texas resale certificate in lieu of paying Texas sales tax on the equipment it will rent. That equipment must be kept separate from the equipment used to provide nontaxable skydiving instruction. The facility owes Texas sales tax on the fair market rental value of the equipment when it uses the equipment in training.

The rental of an aircraft without a pilot is subject to Texas sales tax. The rental of an aircraft with a pilot is not subject to Texas sales tax.

Local Tax

Please refer to publication 94-105 "Guidelines for Collecting Local Sales and Use Tax" for information on local sales and use tax collection and reporting requirements.

Permit Applications, Resale and Exemption Forms

You can get the application for a Texas sales and use tax permit, exemption certificates and resale certificates online.

94-186
(03/2006)

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