Bill Text: TX HB3095 | 2013-2014 | 83rd Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the mixed beverage tax imposed on certain venues that present live music; authorizing a fee; decreasing the rate of a tax.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-05-07 - Committee report sent to Calendars [HB3095 Detail]

Download: Texas-2013-HB3095-Introduced.html
  83R5623 ADM-D
 
  By: Strama H.B. No. 3095
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a reduction in the mixed beverage tax for certain venues
  that present live music; authorizing a fee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         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 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 3.  This Act takes effect September 1, 2013.
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