BILL ANALYSIS

H.B. 3386

By: Geren

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

There have been calls for clarity regarding the sales and use tax exemption for amusement services that are exclusively provided by a nonprofit corporation for the purpose of encouraging agriculture by the maintenance of public fairs and exhibitions of livestock and from which no individual received a private benefit. H.B. 3386 seeks to provide that clarity with respect to the principal use of an approved venue project at which such amusement services are provided.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3386 amends the Tax Code to establish that, with respect to the sales and use tax exemption for certain amusement services, an amusement service is exclusively provided by a nonprofit corporation for the purpose of encouraging agriculture by the maintenance of public fairs and exhibitions of livestock and from which no individual received a private benefit if the amusement service is provided at an approved venue project whose principal use is for rodeos, livestock shows, equestrian events, agricultural expositions, county fairs, or similar events, which is also considered a certain qualified project for municipal hotel occupancy tax purposes.

EFFECTIVE DATE

October 1, 2019.