The Texas Comptroller recently ruled that the rental of trolley-style bikes is a taxable amusement service. The bikes were rented on an hourly basis. Customers were allowed to bring food, beverages, music, and kegs that could be attached to an on-board tap system.
Amusement services are taxable in Texas. Amusement services are defined as "entertainment, recreation, sport, pastime, diversion, or enjoyment that is a pleasurable occupation of the senses." The ruling found that the trolley service was a taxable amusement services because it was intended to "provide riders with a self-powered ride for pleasure, recreation, and entertainment."