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City to Pay State $400,000 For Not Taxing Golf Course Green Fees

If you've played a round of golf at one of Dallas' half dozen municipal golf courses, you may have skipped out on the state-mandated 8.25 percent sales tax on your green fee. The city contracts with independent golf pros who collect green fees but haven't traditionally collected sales tax. It's a loophole, and Comptroller Susan Combs doesn't like loopholes.

Combs, according an item added to this week's City Council agenda, "has recently concluded that the golf pros' charging golfers green fees were taxable events." So, her office went after the golf pros for unpaid sales taxes, who in turn said the taxes are city's responsibility.

And the city is taking responsibility, to the tune of a $400,000 settlement that will clear the books with the Comptroller's office. The council will vote on whether to approve the settlement on Wednesday.

The loophole, however, has already been closed. Says so on the city's golfing website, complete with random capitalization: "ATTENTION GOLFERS Effective Monday, July 23, 2012 STATE SALES TAX WILL BE INCLUDED IN ALL City of Dallas GREEN FEES."

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