By: Stiles H.B. No. 1607
73R6276 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the state and local taxes on bingo and to the deposit
1-3 of bingo taxes paid under protest.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2(10), Bingo Enabling Act (Article 179d,
1-6 Vernon's Texas Civil Statutes), is amended to read as follows:
1-7 (10) "Net proceeds" means:
1-8 (A) in relation to the gross receipts from one
1-9 or more occasions of bingo, the amount that remains after deducting
1-10 the reasonable sums necessarily and actually expended for
1-11 advertising, security, repairs to premises and equipment, bingo
1-12 supplies and equipment, prizes, stated rental, or mortgage and
1-13 insurance expenses, if any, bookkeeping or accounting services,
1-14 fees for personnel as permitted under Subsection (c) of Section 19
1-15 of this Act, janitorial services and utility supplies and services,
1-16 if any, and license fees<, and the gross receipts tax>; and
1-17 (B) in relation to the gross rent or other
1-18 consideration received by an organization licensed to conduct bingo
1-19 for the use of its premises, fixtures, or equipment by another
1-20 licensee, the amount that remains after deducting the reasonable
1-21 sums necessarily and actually expended for janitorial services and
1-22 utility supplies directly attributable to the use of the premises,
1-23 fixtures, or equipment, if any.
1-24 SECTION 2. The Bingo Enabling Act (Article 179d, Vernon's
2-1 Texas Civil Statutes) is amended by adding Section 2C to read as
2-2 follows:
2-3 Sec. 2C. ADMISSION FEE. (a) An authorized organization
2-4 licensed to conduct bingo shall collect a fee of $1 from each
2-5 person admitted to a bingo occasion. The organization shall
2-6 deposit fees collected under this section in a special account.
2-7 The fees may not be commingled with other funds of the
2-8 organization.
2-9 (b) The fee imposed by this section is due and payable by
2-10 the licensee to the state treasurer quarterly on or before the 15th
2-11 day of the month succeeding each calendar quarter and is payable to
2-12 the commission. The report accompanying the payment must be filed
2-13 under oath on forms prescribed by the commission.
2-14 (c) The receipts from the admission fee are exempt from
2-15 taxation under Chapter 151, Tax Code, and its subsequent
2-16 amendments.
2-17 (d) In applying the provisions of this Act, the admission
2-18 fee imposed by this section is treated as if it were a tax.
2-19 (e) This section does not apply to an authorized
2-20 organization that holds a Class A or Class B license to conduct
2-21 bingo.
2-22 SECTION 3. Section 12(d), Bingo Enabling Act (Article 179d,
2-23 Vernon's Texas Civil Statutes), is amended to read as follows:
2-24 (d) An authorized organization may receive a temporary
2-25 license for the conduct of bingo games on filing with the
2-26 commission an application, on a form prescribed by the commission,
2-27 accompanied by a $25 license fee. A temporary license is valid for
3-1 four hours during any one day. An organization may receive no more
3-2 than six temporary licenses in a calendar year. An organization
3-3 operating under a temporary license is subject to the <gross
3-4 receipts tax authorized or imposed by this Act and the other>
3-5 provisions of this Act to the extent they can be made applicable.
3-6 SECTION 4. Section 19a(k), Bingo Enabling Act (Article 179d,
3-7 Vernon's Texas Civil Statutes), is amended to read as follows:
3-8 (k) Before the end of each quarter, each licensed authorized
3-9 organization shall disburse for charitable purposes an amount not
3-10 less than 35 percent of the organization's adjusted gross receipts
3-11 from the last preceding quarter, less the amount of any credits
3-12 allowed by rule for <bingo gross receipts taxes and> authorized
3-13 expenses. For purposes of this subsection, adjusted gross receipts
3-14 means gross receipts plus any consideration received from the
3-15 rental of premises for bingo by the authorized organization, less
3-16 the amount of prizes paid in the preceding quarter. If a licensed
3-17 authorized organization fails to meet the requirements of this
3-18 subsection for a quarter, the commission in applying appropriate
3-19 sanctions may consider whether, taking into account the amount
3-20 required to be distributed during that quarter and the three
3-21 preceding quarters and the charitable distributions for each of
3-22 those quarters, the organization has distributed a total amount
3-23 sufficient to have met the 35 percent requirement for that quarter
3-24 and the three preceding quarters combined.
3-25 SECTION 5. Section 26, Bingo Enabling Act (Article 179d,
3-26 Vernon's Texas Civil Statutes), is amended to read as follows:
3-27 Sec. 26. TRANSMITTALS, REFUNDS, AND COLLECTIONS. (a) The
4-1 revenue collected from the admission fee imposed by Section 2C of
4-2 this Act and sent to the state shall be deposited to the credit of
4-3 a special account in the state treasury.
4-4 (b) The commission shall determine the total amount of
4-5 revenue deposited in the fund from admissions to bingo games in
4-6 each county and each municipality that imposed a gross receipts tax
4-7 on the conduct of bingo games within the county or municipality
4-8 under Section 3 of this Act, as it existed on August 31, 1993.
4-9 (c) Quarterly, the commission shall send to each:
4-10 (1) county that on August 31, 1993, imposed a gross
4-11 receipts tax on the conduct of bingo games within the county a
4-12 payment equal to 20 percent of the fees deposited in the fund from
4-13 admissions to bingo games conducted in the county; and
4-14 (2) municipality that on August 31, 1993, imposed a
4-15 gross receipts tax on the conduct of bingo games within the
4-16 municipality a payment equal to 20 percent of the fees deposited in
4-17 the fund from admissions to bingo games conducted in the
4-18 municipality.
4-19 (d) If on August 31, 1993, a county and a municipality both
4-20 imposed a gross receipts tax on the conduct of bingo games on the
4-21 same gross receipts, the commission shall quarterly send to each:
4-22 (1) county that on August 31, 1993, imposed a gross
4-23 receipts tax on the conduct of bingo games within the county a
4-24 payment equal to 10 percent of the fees deposited in the fund from
4-25 admissions to bingo games conducted in the county; and
4-26 (2) municipality that on August 31, 1993, imposed a
4-27 gross receipts tax on the conduct of bingo games within the
5-1 municipality a payment equal to 10 percent of the fees deposited in
5-2 the fund from admissions to bingo games conducted in the
5-3 municipality.
5-4 (e) The commission shall transfer any remaining amounts in
5-5 the fund to the general revenue fund.
5-6 (f) Each jurisdiction's share of admission fees <all gross
5-7 receipts taxes> collected under <Section 3 of> this Act <by the
5-8 commission> shall be transmitted to the treasurer or the officer of
5-9 the jurisdiction performing the functions of that office by the
5-10 commission payable to the jurisdiction <periodically as promptly as
5-11 feasible. Transmittals required under this Act shall be made at
5-12 least twice in each state fiscal year>. The funds so transmitted
5-13 may be used by the jurisdiction for any purpose for which the
5-14 general funds of the jurisdiction may be used.
5-15 (g) <(b)> Before transmitting funds to a county or
5-16 municipality under <Subsection (a) of> this section, the commission
5-17 shall deduct two percent of the sum collected from each
5-18 jurisdiction during such period and shall deposit the funds in the
5-19 state treasury to the credit of a special fund to be known as the
5-20 bingo enforcement fund. The fund may be used only for the
5-21 administration and enforcement of this Act.
5-22 (h) <(c)> The commission is authorized to retain in the
5-23 suspense account of any jurisdiction a portion of the
5-24 jurisdiction's share of the admission fee <tax> collected under
5-25 this Act. The balance so retained in the suspense account may not
5-26 exceed five percent of the amount remitted to the jurisdiction.
5-27 The commission is authorized to make refunds from the suspense
6-1 account of any jurisdiction for overpayments made to such accounts
6-2 and to redeem dishonored checks and drafts deposited to the credit
6-3 of the suspense account of the jurisdiction.
6-4 (i) <(d) When any jurisdiction imposes the gross receipts
6-5 tax and thereafter abolishes the tax, the commission may retain in
6-6 the suspense account of the jurisdiction for one year five percent
6-7 of the final remittance to each such jurisdiction at the time of
6-8 termination of collection of the tax in the jurisdiction to cover
6-9 possible refunds for overpayment of the tax and to redeem
6-10 dishonored checks and drafts deposited to the credit of the
6-11 account. After one year has elapsed after the effective date of
6-12 abolition of the tax in the jurisdiction, the commission shall
6-13 remit the balance in the account to the jurisdiction and close the
6-14 account.>
6-15 <(e)> Interest earned on all admission fees <taxes>
6-16 collected by the commission under this Act before distribution to
6-17 the local jurisdiction, including interest earned from the suspense
6-18 accounts retained under this section, shall be credited to the
6-19 General Revenue Fund.
6-20 SECTION 6. Section 31, Bingo Enabling Act (Article 179d,
6-21 Vernon's Texas Civil Statutes), is amended to read as follows:
6-22 Sec. 31. Determination if no Return Made. If any licensee
6-23 fails to make a required return, or if any person conducts bingo
6-24 without a license, the commission shall make an estimate of the
6-25 number of persons admitted to each occasion of bingo <gross
6-26 receipts of the licensee or person conducting bingo without a
6-27 license> or of the gross rentals received by a licensee for the
7-1 rental of premises on which bingo is conducted. The estimate
7-2 shall be made for the period in respect to which the licensee or
7-3 other person failed to make a return and shall be based on any
7-4 information covering any period that is in the possession of the
7-5 commission or may come into the possession of the commission. On
7-6 the basis of this estimate, the commission shall compute and
7-7 determine the amount required to be paid to the state, adding to
7-8 the sum a penalty of 10 percent of the amount. One or more
7-9 determinations may be made for one or more periods.
7-10 SECTION 7. Section 112.058, Tax Code, is amended by adding
7-11 Subsection (f) to read as follows:
7-12 (f) All protest payments of taxes or admission fees imposed
7-13 by and collected for the state under the Bingo Enabling Act
7-14 (Article 179d, Vernon's Texas Civil Statutes) that become due on or
7-15 after September 1, 1993, are governed by Subchapter J, Chapter 403,
7-16 Government Code.
7-17 SECTION 8. Sections 2A, 3, 19b, 21, and 22, Bingo Enabling
7-18 Act (Article 179d, Vernon's Texas Civil Statutes), are repealed.
7-19 SECTION 9. All protest payments of taxes imposed by and
7-20 collected for the state under the Bingo Enabling Act (Article 179d,
7-21 Vernon's Texas Civil Statutes) that have been deposited in a
7-22 suspense account before the effective date of this Act or that are
7-23 subsequently deposited in a suspense account are transferred to the
7-24 general revenue fund.
7-25 SECTION 10. (a) This Act takes effect September 1, 1993.
7-26 (b) The change in law made by this Act does not affect taxes
7-27 imposed before the effective date of this Act, and the law in
8-1 effect before the effective date of this Act is continued in effect
8-2 for purposes of the liability for and collection and allocation of
8-3 those taxes.
8-4 SECTION 11. The importance of this legislation and the
8-5 crowded condition of the calendars in both houses create an
8-6 emergency and an imperative public necessity that the
8-7 constitutional rule requiring bills to be read on three several
8-8 days in each house be suspended, and this rule is hereby suspended.