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.


1-11           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                                  * * * * *