SRC-CDH H.B. 2157 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2157
By: Williamson (Wentworth)
Finance
5-7-97
Engrossed


DIGEST 

Currently, Chapter 151 of the Tax Code, regarding limited sales, excise,
and use tax, imposes a tax on amusement services.  The tax is routinely
collected at the time of the original sale of tickets to an amusement
service and the ticket seller then reports and remits the tax to the
Comptroller of Public Accounts.  In some cases, event tickets are
repurchased and resold.  Problems have arisen because current law makes no
provision for the transfer of the credit for the sales tax paid by the
original purchaser of the ticket to a reseller.  H.B. 2157 would establish
a mechanism to credit a reseller the sales tax already paid on the
original purchase of an event ticket. 

PURPOSE

As proposed, H.B. 2157 provides for reporting under the sales and use tax
the value of certain tickets to an amusement service purchased for resale.

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 151I, Tax Code, by adding Section 151.432, as
follows: 

Sec. 151.432.  DEDUCTIONS OF TAX ON TICKET OR ADMISSION DOCUMENT TO
AMUSEMENT SERVICE.  Authorizes a reseller of a ticket or admission
document to an amusement service to deduct from taxable sales reported the
adjusted value of the ticket or admission document purchased for resale
from a non-permitted purchaser of the ticket or admission document under
certain conditions.  Requires the reseller's books and records to be kept
in accordance with the requirements of Section 151.025 and to document
certain information.  Authorizes the reseller to satisfy Subsection (b)(3)
by retaining a reproduction of a ticket or admission document to the
amusement service.  Defines "adjusted value of a ticket or admission
document." 

SECTION 2. Effective date:  October 1, 1997.

SECTION 3. Emergency clause.