By Williamson                                   H.B. No. 2157

      75R7089 DAK-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to reporting under the sales and use tax the value of

 1-3     certain tickets to an amusement service purchased for resale.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter I, Chapter 151, Tax Code, is amended

 1-6     by adding Section 151.432 to read as follows:

 1-7           Sec. 151.432.  DEDUCTIONS OF TAX ON TICKET OR ADMISSION

 1-8     DOCUMENT TO AMUSEMENT SERVICE.  (a)  A reseller of a ticket or

 1-9     admission document to an amusement service may deduct from taxable

1-10     sales reported the adjusted value of the ticket or admission

1-11     document purchased for resale from a non-permitted purchaser of the

1-12     ticket or admission document if:

1-13                 (1)  the taxes imposed by this chapter were paid by the

1-14     purchaser and the purchaser does not hold a permit issued under

1-15     this chapter;

1-16                 (2)  language on the ticket or admission document

1-17     purchased for resale states that all taxes have been included in

1-18     the price of the ticket or admission document;

1-19                 (3)  the ticket or admission document for which a

1-20     deduction is claimed was not purchased tax-free by use of a resale

1-21     or exemption certificate; and

1-22                 (4)  the ticket or admission document is actually

1-23     resold.

1-24           (b)  The reseller's books and records must be kept in

 2-1     accordance with the requirements of Section 151.025 and must:

 2-2                 (1)  identify the non-permitted purchaser;

 2-3                 (2)  document the face value of any ticket or admission

 2-4     document purchased by a non-permitted purchaser;

 2-5                 (3)  document that sales tax was included in a ticket

 2-6     or admission document purchased by a non-permitted purchaser;

 2-7                 (4)  document the sale of the ticket or admission

 2-8     document; and

 2-9                 (5)  account for any remaining inventory of unsold

2-10     tickets or admission documents.

2-11           (c)  The reseller may satisfy Subsection (b)(3) by retaining

2-12     a reproduction of a ticket or admission document to the amusement

2-13     service.

2-14           (d)  In this section, "adjusted value of a ticket or

2-15     admission document" means the face value of the ticket or admission

2-16     document, less the included state or local sales or use taxes.

2-17           SECTION 2.  This Act takes effect October 1, 1997.

2-18           SECTION 3.  The importance of this legislation and the

2-19     crowded condition of the calendars in both houses create an

2-20     emergency and an imperative public necessity that the

2-21     constitutional rule requiring bills to be read on three several

2-22     days in each house be suspended, and this rule is hereby suspended.