LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 14, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 2157
          Committee on Ways & Means                              By: Williamson
          House
          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 Introduced
         
No significant fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
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.

METHODOLOGY
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.
          
LOCAL
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,SM