Editing Openai/69177b63-caec-8000-a009-8936c37238c5 (section)

===== - Determine what the “normal” facility use fee would be (if someone simply used that facility without the tournament component). If your entry fee is much higher because of the competition element, that supports the exemption. =====
* Make sure the tournament is actually structured as a contest: participants are competing, prizes are awarded, the fee partly covers the contest costs & prizes.
* Document clearly what portion (if any) of the fee goes towards the contest/prize pool or competition administration.
* If you decide the entry fee is taxable, you’ll need to register for a Texas sales tax permit (if you haven’t already) and collect the tax at the appropriate rate (state + local). Texas Comptroller<ref>{{cite web|title=Texas Comptroller|url=https://comptroller.texas.gov/taxes/publications/96-211.php|publisher=Texas Comptroller|access-date=2025-11-17}}</ref>
* If you decide it fits the exception and is not taxable, it’s good to keep documentation supporting that decision (just in case of audit) — e.g., how the fee was determined, how much is prize pool, how it differs from normal use, etc.
* In borderline cases (or if you want clarity), you may consider seeking a ruling from the Comptroller or talking to a tax professional.