Relating to the imposition of a tax on the gross receipts from admissions fees charged by sexually oriented businesses.
Impact
The law will necessitate that sexually oriented businesses adjust their financial reporting and revenue allocation practices. Businesses failing to comply with the tax reporting requirements face penalties, which could affect their financial health. Additionally, the bill repeals an earlier subchapter related to such businesses, effectively consolidating the tax framework under Chapter 184 of the Tax Code. This will replace previous business regulations and could influence how businesses operate in this sensitive sector.
Summary
Senate Bill 1037 proposes the introduction of a tax on the gross receipts from admissions fees charged by sexually oriented businesses in Texas. The legislation aims to establish a 10% tax, which will be imposed on these businesses every quarter, and mandates that they file a report detailing their admissions revenue. The tax revenue is allocated, with one-fourth going to the foundation school fund and three-fourths to the general revenue fund, ensuring a targeted approach to fund education and state services.
Sentiment
The sentiment around SB 1037 appears to vary with some legislators supporting the bill as a means to generate necessary revenue for state services, particularly for programs addressing sexual assault. On the other hand, there are concerns among some groups about the potential stigma attached to such taxation and how it might negatively affect local businesses and community perceptions.
Contention
Notable points of contention could arise regarding the fairness of imposing an admissions tax specifically on sexually oriented businesses, which some may see as discriminatory against this industry. Critics might argue that this tax could drive business underground or lead to reduced compliance, impacting the overall economic activity in the area. This debate encapsulates broader discussions about regulation, taxation, and the moral implications associated with businesses operating in the sexual services sector.
Relating to the amount of the fee imposed on certain sexually oriented businesses that is allocated to the sexual assault program fund and the allocation of certain other revenue to that fund; increasing the amount of a fee.
Relating to the collection, remittance, and administration of the tax on gross rental receipts on motor vehicles rented through a marketplace rental provider; imposing a penalty.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.