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