TO: | Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | HB3095 by Strama (relating to the mixed beverage tax imposed on certain venues that present live music; authorizing a fee; decreasing the rate of a tax.), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | ($10,423,000) |
2015 | ($9,765,000) |
2016 | ($10,234,000) |
2017 | ($10,735,000) |
2018 | ($11,258,000) |
Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from Counties |
Probable Revenue Gain/(Loss) from Municipalities |
---|---|---|---|---|
2014 | ($2,397,000) | ($8,026,000) | ($1,069,000) | ($988,000) |
2015 | ($397,000) | ($9,368,000) | ($1,248,000) | ($1,153,000) |
2016 | ($397,000) | ($9,837,000) | ($1,310,000) | ($1,211,000) |
2017 | ($397,000) | ($10,338,000) | ($1,377,000) | ($1,273,000) |
2018 | ($397,000) | ($10,861,000) | ($1,446,000) | ($1,337,000) |
Fiscal Year | Change in Number of State Employees from FY 2013 |
---|---|
2014 | 6.0 |
2015 | 6.0 |
2016 | 6.0 |
2017 | 6.0 |
2018 | 6.0 |
The bill would amend Chapter 183 of the Tax Code, regarding the mixed beverage tax.
The bill would add new Section 183.002 to allow certain bars, nightclubs or restaurants who meet specific requirements in the bill to be classified as a live music presenter. The mixed beverage tax rate for a live music presenter would be 10 percent of gross receipts. Businesses applying to become a live music presenter would be required to submit with their application an application fee in an amount to be determined by the Comptroller and a detailed description of live music events hosted by the applicant for the prior year.
The bill would direct the Comptroller and the Texas Music Office in the Governor's Office to evaluate initial applications by considering factors they deem necessary and the Comptroller sets by rule. The live music presenter classification would be valid for one year.
The bill would require renewal applicants to submit a description of the estimated tax savings due to the reduced tax rate, a description of expenditures related to live music events for the past year, and all the requirements of an initial application. Renewal applications also would be evaluated by the Comptroller and the Texas Music Office. The Comptroller would determine if the business continues to comply with the requirements of the classification and has used its tax savings on expenditures related to live music.
The bill would take effect September 1, 2013.
The fiscal impact analysis is based on the mixed beverage tax reports of businesses that are listed with the Texas Music Office (TMO) to meet the criteria laid out in the bill. The revenue impacts based on these reports was expanded to include businesses that would qualify but are not listed with the TMO and businesses that would expand their live music offerings to meet the criteria in the bill. The estimate for fiscal 2014 was adjusted for a September 1, 2013 effective date.
The Comptroller's office estimates administrative costs necessary to hire six Full-Time
Equivalents (FTEs) to review and process applications and enforce provisions related to the new
tax reduction for live music presenters.
The Governor's Office estimates there would be a minimal cost associated with implementing the
provisions of the bill.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | UP, KK, SD, AG
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