1-1 By: Williamson (Senate Sponsor - Wentworth) H.B. No. 2157 1-2 (In the Senate - Received from the House May 5, 1997; 1-3 May 6, 1997, read first time and referred to Committee on Finance; 1-4 May 16, 1997, reported favorably by the following vote: Yeas 10, 1-5 Nays 0; May 16, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to reporting under the sales and use tax the value of 1-9 certain tickets to an amusement service purchased for resale. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended 1-12 by adding Section 151.432 to read as follows: 1-13 Sec. 151.432. DEDUCTIONS OF TAX ON TICKET OR ADMISSION 1-14 DOCUMENT TO AMUSEMENT SERVICE. (a) A reseller of a ticket or 1-15 admission document to an amusement service may deduct from taxable 1-16 sales reported the adjusted value of the ticket or admission 1-17 document purchased for resale from a non-permitted purchaser of the 1-18 ticket or admission document if: 1-19 (1) the taxes imposed by this chapter were paid by the 1-20 purchaser and the purchaser does not hold a permit issued under 1-21 this chapter; 1-22 (2) language on the ticket or admission document 1-23 purchased for resale states that all taxes have been included in 1-24 the price of the ticket or admission document; 1-25 (3) the ticket or admission document for which a 1-26 deduction is claimed was not purchased tax-free by use of a resale 1-27 or exemption certificate; and 1-28 (4) the ticket or admission document is actually 1-29 resold. 1-30 (b) The reseller's books and records must be kept in 1-31 accordance with the requirements of Section 151.025 and must: 1-32 (1) identify the non-permitted purchaser; 1-33 (2) document the face value of any ticket or admission 1-34 document purchased by a non-permitted purchaser; 1-35 (3) document that sales tax was included in a ticket 1-36 or admission document purchased by a non-permitted purchaser; 1-37 (4) document the sale of the ticket or admission 1-38 document; and 1-39 (5) account for any remaining inventory of unsold 1-40 tickets or admission documents. 1-41 (c) The reseller may satisfy Subsection (b)(3) by retaining 1-42 a reproduction of a ticket or admission document to the amusement 1-43 service. 1-44 (d) In this section, "adjusted value of a ticket or 1-45 admission document" means the face value of the ticket or admission 1-46 document, less the included state or local sales or use taxes. 1-47 SECTION 2. This Act takes effect October 1, 1997. 1-48 SECTION 3. The importance of this legislation and the 1-49 crowded condition of the calendars in both houses create an 1-50 emergency and an imperative public necessity that the 1-51 constitutional rule requiring bills to be read on three several 1-52 days in each house be suspended, and this rule is hereby suspended. 1-53 * * * * *