Bill Text: NC H1911 | 2010 | Regular Session | Amended
Bill Title: Modernize Adm. Tax/Restore Amen. Exclusion
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Introduced - Dead) 2010-05-20 - Ref to the Com on Commerce, Small Business, and Entrepreneurship, if favorable, Finance [H1911 Detail]
Download: North_Carolina-2010-H1911-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
H 1
HOUSE BILL 1911*
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Short Title: Modernize Adm. Tax/Restore Amen. Exclusion. |
(Public) |
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Sponsors: |
Representatives Gibson; Carney, Hill, Howard, McGee, Wainwright, and Womble. |
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Referred to: |
Commerce, Small Business, and Entrepreneurship, if favorable, Finance. |
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May 20, 2010
A BILL TO BE ENTITLED
AN ACT to modernize and equalize the admissions tax by extending it to internet ticket resellers, to apply the tax only to the charge for admission to an event and not to extra amenities, and to require the secretary of revenue to provide advance notice of certain revised interpretations of the department.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑37.1 reads as rewritten:
"§ 105‑37.1.
Dances, athletic events, shows, exhibitions, and other entertainments.Live
entertainment and ticket resales.
(a) Scope. – A privilege tax is imposed on the gross
receipts of a person who is engaged in any of the following:
(1) Giving, offering, or managing a dance or an
athletic contest for which an admission fee in excess of fifty cents (50¢) is
charged.The gross admissions receipts of a person who is engaged in
providing admission to live entertainment of any kind. Gross admissions receipts
under this subdivision do not include charges for amenities. If charges for
amenities are not separately stated on the face of an admission ticket, then
the charge for admission is considered to be equal to the admission charge for a
ticket to the same event that does not include amenities and is for a seat
located directly in front of or closest to a seat that includes amenities.
(2) Giving, offering, or managing a form of
amusement or entertainment that is not taxed by another provision of this Article
and for which an admission fee is charged.The gross admissions receipts
of a person who is engaged in the business of reselling on the Internet under G.S. 14‑344.1
an admission ticket that is taxable under subdivision (1) of this subsection.
If the price of an admission ticket is printed on the face of the ticket, gross
receipts under this subdivision exclude the face price. If the price of an
admission ticket is not printed on the face of the ticket, the tax under this
subdivision applies to the difference between the amount the reseller paid for
the ticket and the amount the reseller charges for the ticket.
(3) Exhibiting a performance, show, or
exhibition, such as a circus or dog show, that is not taxed by another
provision of this Article.
(b) Rate and Payment. – The rate of the privilege tax imposed
by this section is three percent (3%) of the gross receipts from the
activities described in subsection (a) of this section.(3%). The tax
is due when a return is due. A return is due by the 10th day after the end of
each month and covers the gross receipts received during the previous month.
(c) Advance Report. – A person who owns or controls a performance,
show, or exhibition live entertainment performance subject to the
tax imposed by this section and who plans to bring the performance to this
State from outside the State must file a statement with the Secretary that
lists the dates, times, and places of the performance, show, or exhibition. performance.
The statement must be filed no less than five days before the first performance,
show, or exhibition performance in this State.
(d) Local Taxes. – Cities may levy a license tax on a
person taxed under subdivision (a)(1) or (a)(2) of this section;
however, the tax may not exceed twenty‑five dollars ($25.00). Cities
may levy a license tax on a person taxed under subdivision (a)(3) of this
section; however, the tax may not exceed twenty‑five dollars ($25.00)
for each day or part of a day the performance, show, or exhibition live
entertainment is given performed at each location. Cities
may not levy a license tax on a person taxed under subdivision (a)(2) of this
section.
Counties may not levy a license tax on a person taxed under subdivision
(a)(1) or (a)(2) of this section. Counties may levy a license tax on a
person taxed under subdivision (a)(3) to the same extent as a city."
SECTION 2. G.S. 14‑344.1(e) is repealed.
SECTION 3. If any provision of this act is declared by a court to violate the Internet Tax Freedom Act, Pub. L. 105‑277, §§ 1100‑1104, as amended, or is otherwise found to be invalid, then G.S. 14‑344.1 is repealed.
SECTION 4. G.S. 105‑264(c) reads as rewritten:
"(c) Revised Interpretations. – This section does
not prevent the Secretary from changing an interpretation interpretation,
and it does not prevent a change in an interpretation from applying on and
after the effective date of the change. An interpretation that revises a
prior interpretation by expanding the scope of a tax or otherwise increasing
the amount of tax due may not become effective sooner than the following:
(1) For a tax that is payable on a monthly or quarterly basis, the first day of a month that is at least 90 days after the date the revised interpretation is issued.
(2) For a tax that is payable on an annual basis, the first day of a tax year that begins after the date the revised interpretation is issued."
SECTION 5. G.S. 105‑37.1(a)(2), as amended by Section 1 of this act, becomes effective January 1, 2011, and applies to admission tickets sold on or after that date. The remainder of Section 1 of this act and Section 2 of this act become effective August 1, 2010. G.S. 105‑37.1(a)(1), as amended by Section 1 of this act, applies to charges for admission received on or after August 1, 2010. The remainder of this act is effective when it becomes law.
