| TO: | Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB982 by Thompson (Relating to the imposition of a tax on the gross receipts from admissions fees charged by sexually oriented businesses.), As Introduced |
Because the existing sexually oriented business admissions fee is currently under litigation and is being repealed by this statute, any overall revenue impact from the new admissions fee cannot be estimated at this time.
The bill would create the Sexually Oriented Businesses Admissions Tax and repeal Subchapter B of Chapter 47 of the Business and Commerce Code, and the $5 sexually oriented business admission fee established in that subchapter.
The bill would impose a 10 percent tax on the gross receipts from admission fees received by a sexually oriented business. The tax imposed would be an occupation tax. Affected businesses would be required to file a report and make quarterly tax payments. A business that paid the admission fee repealed by this bill would be entitled to a credit towards the tax imposed by this bill. Failure to report or pay this tax would result in a penalty of at least $1.
The bill would allocate one-fourth of the tax revenue collected to GR Account 0193 - Foundation School Fund, and the remaining three-fourths would be allocated to the General Revenue Fund 0001. The first $25 million of net revenue allocated to the General Revenue Fund 0001 in a fiscal biennium would be transferred to GR Account 5010 - Sexual Assault Program.
The bill would take effect July 1, 2009, if it receives a two-thirds vote, otherwise it would take effect October 1, 2009.
| Source Agencies: | 304 Comptroller of Public Accounts, 701 Central Education Agency
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| LBB Staff: | JOB, JRO, MN
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