Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  May 14, 1997
      TO: Honorable Bill Ratliff, Chair            IN RE:  House Bill No. 2157, 
As Engrossed
          Committee on Finance                              By: Williamson
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on HB2157 ( relating 
to reporting under the sales and use tax the value of certain 
tickets to an amusement service purchased for resale) this office 
has detemined the following:
         Biennial Net Impact to General Revenue Funds by HB2157-As Engrossed
No significant fiscal implication to the State is anticipated.

The bill would amend Chapter 151 of the Tax 
Code to permit amusement ticket resellers to deduct from their 
reported taxable sales the adjusted value of tickets they had 
purchased from certain purchasers of tickets.  The deduction 
would only be allowed if the purchaser, from whom the reseller 
had bought the ticket for resale, had no sales tax permit.  
Also, the deduction would only be permitted if the language 
on the ticket stated that all taxes had been included in the 
price of the ticket, the ticket had not been purchased tax-free 
by the use of a resale or exemption certificate, and the ticket 
would actually be resold.

The reseller would be required 
to maintain certain books and records related to tickets purchased 
for resale.

The bill would codify current industry 
procedure because tickets, even those for resale, cannot normally 
be purchased without the payment of the tax included in the 
purchase price.  Therefore, the bill would have no significant 
impact on the state's or local governments' finances.
No significant fiscal implication to units of local government 
is anticipated.
   Source:            Agencies:   304   Comptroller of Public Accounts
                      LBB Staff:   JK ,RR ,SM