|
SECTION 1. Subchapter A,
Chapter 183, Tax Code, is amended by adding Section 183.002 to read as
follows:
Sec. 183.002. LIVE MUSIC
PRESENTERS. (a) In this section:
(1) "Bar" means
a retail business establishment the primary purpose of which is the sale of
alcoholic beverages for on-premises consumption.
(2) "Nightclub"
means a retail business establishment the primary purpose of which is to
provide a forum for dancing where alcoholic beverages are sold for
on-premises consumption. The term includes a dance hall where alcoholic
beverages are sold for on-premises consumption.
(3) "Office" means
the Texas Music Office in the office of the governor.
(4) "Restaurant"
means a place where food is sold for on-premises consumption.
(b) A permittee that is a
bar, nightclub, or restaurant may submit an application to the comptroller
to request to be classified as a live music presenter. Concert halls, music
halls, opera halls, auditoriums, performing arts centers, and other venues
that are built primarily or exclusively for the performance of live music
are not eligible to be classified as live music presenters for purposes of
this section.
(c) An initial application
to be classified as a live music presenter must include:
(1) an application fee in
an amount to be determined by the comptroller; and
(2) a detailed description
of the live music events hosted by the applicant in the year preceding the
date of the application.
(d) The comptroller, in
conjunction with the office, shall evaluate each initial application under
this section by considering any factors that the comptroller and office
consider necessary and that the comptroller prescribes by rule. The factors
must include a requirement that the applicant have hosted live music events
open to the general public at least four
nights a week in at least 45 of the 52 weeks preceding the date of the
application.
(e) An applicant that is
classified as a live music presenter retains that classification until the
first anniversary of the date of classification.
(f) An applicant may apply
to renew a classification as a live music presenter. The application must
include:
(1) the fee and
information required under Subsection (c);
(2) a description of the
estimated tax savings achieved by the applicant as a result of the reduced
tax rate; and
(3) a description of
expenditures made by the applicant during the preceding 12-month period
related to live music events.
(g) The comptroller, in
conjunction with the office, shall evaluate each application to renew a
classification as a live music presenter. The comptroller may renew a
classification only if the comptroller determines that the applicant:
(1) continues to comply
with the requirements to receive that classification under Subsection (d);
and
(2) has used its tax
savings during the preceding 12 months under this section on expenditures
related to expanding or improving the applicant's ability to present live
music.
(h) The comptroller by
rule, after consulting with the office, shall prescribe the manner in which
an applicant must prove compliance with Subsection (g)(2), including the
manner in which the applicant will estimate the amount of tax savings.
(i) A permittee that was
classified as a live music presenter at any time during the preceding
12-month period may not file an initial application under Subsection (c)
but may file a renewal application under Subsection (f).
(j) For purposes of this
section, expenditures related to expanding or improving the ability to
present live music include expenditures for:
(1) items related to the
performance of live music that are eligible for the sales and use tax
exemption authorized by Section 151.3185(a)(2)(A) for producers of audio
recordings;
(2) artist and technician
compensation;
(3) sound and lighting
system equipment and training;
(4) membership in live
music-related trade associations or groups;
(5) insurance on music-related
equipment;
(6) labor related to
music-related equipment or materials, including construction related to
sound mitigation; and
(7) any other expenditure
prescribed by the comptroller by rule after consulting with the office.
|
SECTION 1. Subchapter A,
Chapter 183, Tax Code, is amended by adding Section 183.002 to read as
follows:
Sec. 183.002. LIVE MUSIC
PRESENTERS. (a) In this section:
(1) "Bar" means
a retail business establishment the primary purpose of which is the sale of
alcoholic beverages for on-premises consumption.
(2) "Nightclub"
means a retail business establishment the primary purpose of which is to
provide a forum for dancing where alcoholic beverages are sold for
on-premises consumption. The term includes a dance hall where alcoholic beverages
are sold for on-premises consumption.
(3) "Office"
means the Texas Music Office in the office of the governor.
(4) "Restaurant"
means a place where food is sold for on-premises consumption.
(b) A permittee that is a
bar, nightclub, or restaurant may submit an application to the comptroller
to request to be classified as a live music presenter. Concert halls, music
halls, opera halls, auditoriums, performing arts centers, sexually oriented businesses, stadiums, and
venues that are built primarily or exclusively for the performance of live
music are not eligible to be classified as live music presenters for
purposes of this section.
(c) An initial application
to be classified as a live music presenter must include:
(1) an application fee in
an amount to be determined by the comptroller; and
(2) a detailed description
of the live music events hosted by the applicant in the year preceding the
date of the application.
(d) The comptroller, in
conjunction with the office, shall evaluate each initial application under
this section by considering any factors that the comptroller and office
consider necessary and that the comptroller prescribes by rule. The factors
must include a requirement that the applicant have hosted live music events
open to the general public at least five
nights a week in at least 45 of the 52 weeks preceding the date of the
application.
(e) An applicant that is
classified as a live music presenter retains that classification until the
first anniversary of the date of classification.
(f) An applicant may apply
to renew a classification as a live music presenter. The application must
include:
(1) the fee and
information required under Subsection (c);
(2) a description of the
estimated tax savings achieved by the applicant as a result of the reduced
tax rate; and
(3) a description of
expenditures made by the applicant during the preceding 12-month period
related to live music events.
(g) The comptroller, in
conjunction with the office, shall evaluate each application to renew a
classification as a live music presenter. The comptroller may renew a
classification only if the comptroller determines that the applicant:
(1) continues to comply
with the requirements to receive that classification under Subsection (d);
and
(2) has used its tax savings
during the preceding 12 months under this section on expenditures related
to expanding or improving the applicant's ability to present live music.
(h) The comptroller by
rule, after consulting with the office, shall prescribe the manner in which
an applicant must prove compliance with Subsection (g)(2), including the
manner in which the applicant will estimate the amount of tax savings.
(i) A permittee that was
classified as a live music presenter at any time during the preceding
12-month period may not file an initial application under Subsection (c)
but may file a renewal application under Subsection (f).
(j) For purposes of this
section, expenditures related to expanding or improving the ability to
present live music include expenditures for:
(1) items related to the
performance of live music that are eligible for the sales and use tax
exemption authorized by Section 151.3185(a)(2)(A) for producers of audio
recordings;
(2) artist and technician
compensation;
(3) sound and lighting
system equipment and training;
(4) membership in live
music-related trade associations or groups;
(5) insurance on
music-related equipment;
(6) labor related to
music-related equipment or materials, including construction related to
sound mitigation; and
(7) any other expenditure
prescribed by the comptroller by rule after consulting with the office.
|
|
SECTION 2. Section 183.021,
Tax Code, is amended to read as follows:
Sec. 183.021. TAX IMPOSED ON
MIXED BEVERAGES. (a) Except as provided by Subsection (b), a [A]
tax at the rate of 14 percent is imposed on the gross receipts of a
permittee received from the sale, preparation, or service of mixed
beverages or from the sale, preparation, or service of ice or nonalcoholic
beverages that are sold, prepared, or served for the purpose of being mixed
with an alcoholic beverage and consumed on the premises of the permittee.
(b) A tax at the rate of seven percent is imposed on the gross
receipts of a permittee classified as a live music presenter under Section
183.002 received from the sale, preparation, or service of mixed beverages
or from the sale, preparation, or service of ice or nonalcoholic beverages
that are sold, prepared, or served for the purpose of being mixed with an
alcoholic beverage and consumed on the premises of the live music
presenter.
|
SECTION 2. Section 183.021,
Tax Code, is amended to read as follows:
Sec. 183.021. TAX IMPOSED ON
MIXED BEVERAGES. (a) Except as provided by Subsection (b), a [A]
tax at the rate of 14 percent is imposed on the gross receipts of a
permittee received from the sale, preparation, or service of mixed
beverages or from the sale, preparation, or service of ice or nonalcoholic
beverages that are sold, prepared, or served for the purpose of being mixed
with an alcoholic beverage and consumed on the premises of the permittee.
(b) A tax at the rate of 10 percent is imposed on the gross receipts
of a permittee classified as a live music presenter under Section 183.002
received from the sale, preparation, or service of mixed beverages or from
the sale, preparation, or service of ice or nonalcoholic beverages that are
sold, prepared, or served for the purpose of being mixed with an alcoholic
beverage and consumed on the premises of the live music presenter.
|