sales tax on CHL Classes?

[MoJo]

INAL but since there are no taxes on other professional services ie. doctor, lawyer, accountant I think CHL instruction is non taxable.

Let sleeping dogs lie.

[jordanmills]

Officially, nothing that I know of. I can't represent either Strayhorn or Combes (though I worked for both) so the rest is just my personal opinion.

The general rule is that if you're paying for something that someone thinks or is (eg, their opinion as a consultant or status as an LEO), then it's not taxable. If you're paying for something that someone performs or transfers to you (like documentation or a physical item), then it is taxable. CHL instruction would seem to be an active performance. I'd expect the verdict to clearly be that it's taxable.

[wally775]

It is my understanding that the class is a performance of labor and therefore would be
nontaxable. If, however, you sell or represent that you sold any other product or device
i.e. books, targets, ammunition, gun rental, and then you are probably subject to sales tax only on those items as well you should.

I can tell you, on many subjects, if you ask a TX State tax office employee a direct tax question it will be as if you ask this forum what is the better choice between pistol and revolver.
Even if you get the answer you want from that employee it will only be a defense, not a get out of trouble card, should you ever get audited.

On the subject of being audited, I would not worry too much about the sales tax people.
If you do training as a business or just extra income, do it in a correct manner and pay your taxes on income and where needed on sales tax and you should have no problem.
The average instructor does not train enough people in a year to warrant a visit from the audit division of sales tax.
They work on the same premise private business does. If, for their cost of hours spent auditing you, it is not profitable to be auditing you in all likelihood will never see them.

If you commit fraud of heaven forbid even give them the idea that you committed fraud
intentionally then all bets or off. If you have a Tax number, do not use it to buy tax free items if you are going to use it for personal use.

Sorry I have made this reply longer than should be already.
BOMOE

These are only my opinions.

I am not a lawyer.

I am not an accountant.

Good luck.

[texasjeep44]

Instruction for CHL classes is not a taxable service based on the current sales tax rules.

If you look at the following section it lists some instructional activities that are exempt. It would fall under non amusement instruction.

Like stated previously, if you start to sell items, ie holsters, purses, or other CHL gadgets or tools then you get into the realm of retail sales, and that portion of your business is subject to sales tax.

http://info.sos.state.tx.us/pls/pub/rea ... h=3&rl=298" onclick="window.open(this.href);return false;

(2) Nonamusement services--Activities that are primarily instructional in nature, or nontaxable personal services. Places, services, and clubs that the tax on amusement services does not cover include, but are not limited to:

(A) hobby clubs (stamp collecting clubs, toastmaster clubs, camera clubs, amateur radio clubs);

(B) instructions for any sport or musical discipline;

(C) camps for children (day camps or boarding camps);

(D) video cassette clubs;

(E) political fundraisers;

(F) campground admissions;

(G) cruises that last longer than 24 hours and extend offshore beyond Texas territorial limits;

(H) fishing and hunting leases and guide services; and

(I) membership in sororities and fraternities.