JWB H.B. 2157 75(R)BILL ANALYSIS


WAYS & MEANS
H.B. 2157
By: Williamson
4-18-97
Committee Report (Unamended)



BACKGROUND 

Chapter 151, Tax Code (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 
arise 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.

PURPOSE

The bill would establish a mechanism to credit a re-seller the 
sales tax already paid on the 
original purchase of an event ticket.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly 
grant any additional rulemaking 
authority to a state officer, department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.Amends Subchapter I, Chapter 151, Tax Code (Reports, 
Payments, and Methods 
of Reporting), by adding Section 151.432.  DEDUCTIONS OF TAX ON 
TICKET 
OR ADMISSION DOCUMENT TO AMUSEMENT SERVICE.  

(a) Provides that a reseller of a ticket or admission document to 
an amusement 
service may 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 of admission document if:  1) the taxes imposed by this 
chapter were paid 
by the purchaser and the purchaser does not hold a permit issued 
under this 
chapter; 2) language on the ticket or admission document 
purchased for resale 
states that all taxes have been included in the price of the 
ticket or admission 
document; 3) the ticket or admission document for which a 
deduction is claimed 
was not purchased tax-free by use of a resale or exemption 
certificate; and 4) the 
ticket or admission document is actually resold.

(b) Provides that the re-seller's books and records must be kept 
in accordance with 
Section 151.025, Tax Code (Records Required to be Kept), and 
must: 1) identify 
the non-permitted purchaser; 2) document the face value of any 
ticket or 
admission document purchased by a non-permitted purchaser; 3) 
document that 
sales tax was included in a ticket or admission document 
purchased by a non-
permitted purchaser; 4) document the sale of the ticket or 
admission document; 5) 
account for any remaining inventory of unsold tickets or 
admission documents.

  (c) Provides that the re-seller may satisfy Subsection (b)(3) by 
retaining a 
reproduction of a ticket or admission document to the amusement 
service.

 (d) Defines "adjusted value of a ticket or admission document" as 
the face value 
of the ticket or admission document, less the included state or 
local sales or use 
taxes.

SECTION 2.Effective date:  October 1, 1997.