Texas Senate Bill SB2187

Texas 2009 - 81st Regular

Caption

Relating to the imposition of a tax on the gross receipts from admissions fees charged by sexually oriented businesses.

Impact

The revenue generated from this tax is allocated primarily to the foundation school fund and the general revenue fund, with a specific mandate that the first $25 million collected be directed to the sexual assault program fund. This revenue allocation is intended to bolster resources for sexual assault prevention and support programs, capturing the dual objective of raising funds and addressing a significant social issue.

Summary

SB2187 introduces a tax on the gross receipts from admissions fees charged by sexually oriented businesses. This tax is set at a rate of 10% and applies to all businesses that charge customers an admissions fee. The bill outlines the definitions relevant to its implementation, establishing a straightforward way to calculate and impose the tax on these businesses. It also establishes the necessity for businesses to keep accurate records of their gross receipts to facilitate proper tax reporting.

Contention

Notable points of contention surrounding SB2187 could emerge from debates over the morality and legality of taxing sexually oriented businesses. Critics may argue that the tax unfairly targets a specific industry and could lead to adverse economic impacts on these businesses, including potential job losses and decreased patronage. Moreover, the implications for local governments and how they regulate these businesses could also trigger discussions, particularly concerning how such a state-level tax might affect local revenues and policies.