Texas 2013 - 83rd Regular

Texas House Bill HB3095 Compare Versions

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1	1	83R22910 ADM-D
2	2	By: Strama H.B. No. 3095
3	3	Substitute the following for H.B. No. 3095:
4	4	By: Hilderbran C.S.H.B. No. 3095
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the mixed beverage tax imposed on certain venues that
10	10	present live music; authorizing a fee; decreasing the rate of a tax.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter A, Chapter 183, Tax Code, is amended
13	13	by adding Section 183.002 to read as follows:
14	14	Sec. 183.002. LIVE MUSIC PRESENTERS. (a) In this section:
15	15	(1) "Bar" means a retail business establishment the
16	16	primary purpose of which is the sale of alcoholic beverages for
17	17	on-premises consumption.
18	18	(2) "Nightclub" means a retail business establishment
19	19	the primary purpose of which is to provide a forum for dancing where
20	20	alcoholic beverages are sold for on-premises consumption. The term
21	21	includes a dance hall where alcoholic beverages are sold for
22	22	on-premises consumption.
23	23	(3) "Office" means the Texas Music Office in the
24	24	office of the governor.
25	25	(4) "Restaurant" means a place where food is sold for
26	26	on-premises consumption.
27	27	(b) A permittee that is a bar, nightclub, or restaurant may
28	28	submit an application to the comptroller to request to be
29	29	classified as a live music presenter. Concert halls, music halls,
30	30	opera halls, auditoriums, performing arts centers, sexually
31	31	oriented businesses, stadiums, and venues that are built primarily
32	32	or exclusively for the performance of live music are not eligible to
33	33	be classified as live music presenters for purposes of this
34	34	section.
35	35	(c) An initial application to be classified as a live music
36	36	presenter must include:
37	37	(1) an application fee in an amount to be determined by
38	38	the comptroller; and
39	39	(2) a detailed description of the live music events
40	40	hosted by the applicant in the year preceding the date of the
41	41	application.
42	42	(d) The comptroller, in conjunction with the office, shall
43	43	evaluate each initial application under this section by considering
44	44	any factors that the comptroller and office consider necessary and
45	45	that the comptroller prescribes by rule. The factors must include a
46	46	requirement that the applicant have hosted live music events open
47	47	to the general public at least five nights a week in at least 45 of
48	48	the 52 weeks preceding the date of the application.
49	49	(e) An applicant that is classified as a live music
50	50	presenter retains that classification until the first anniversary
51	51	of the date of classification.
52	52	(f) An applicant may apply to renew a classification as a
53	53	live music presenter. The application must include:
54	54	(1) the fee and information required under Subsection
55	55	(c);
56	56	(2) a description of the estimated tax savings
57	57	achieved by the applicant as a result of the reduced tax rate; and
58	58	(3) a description of expenditures made by the
59	59	applicant during the preceding 12-month period related to live
60	60	music events.
61	61	(g) The comptroller, in conjunction with the office, shall
62	62	evaluate each application to renew a classification as a live music
63	63	presenter. The comptroller may renew a classification only if the
64	64	comptroller determines that the applicant:
65	65	(1) continues to comply with the requirements to
66	66	receive that classification under Subsection (d); and
67	67	(2) has used its tax savings during the preceding 12
68	68	months under this section on expenditures related to expanding or
69	69	improving the applicant's ability to present live music.
70	70	(h) The comptroller by rule, after consulting with the
71	71	office, shall prescribe the manner in which an applicant must prove
72	72	compliance with Subsection (g)(2), including the manner in which
73	73	the applicant will estimate the amount of tax savings.
74	74	(i) A permittee that was classified as a live music
75	75	presenter at any time during the preceding 12-month period may not
76	76	file an initial application under Subsection (c) but may file a
77	77	renewal application under Subsection (f).
78	78	(j) For purposes of this section, expenditures related to
79	79	expanding or improving the ability to present live music include
80	80	expenditures for:
81	81	(1) items related to the performance of live music
82	82	that are eligible for the sales and use tax exemption authorized by
83	83	Section 151.3185(a)(2)(A) for producers of audio recordings;
84	84	(2) artist and technician compensation;
85	85	(3) sound and lighting system equipment and training;
86	86	(4) membership in live music-related trade
87	87	associations or groups;
88	88	(5) insurance on music-related equipment;
89	89	(6) labor related to music-related equipment or
90	90	materials, including construction related to sound mitigation; and
91	91	(7) any other expenditure prescribed by the
92	92	comptroller by rule after consulting with the office.
93	93	SECTION 2. Section 183.021, Tax Code, is amended to read as
94	94	follows:
95	95	Sec. 183.021. TAX IMPOSED ON MIXED BEVERAGES. (a) Except as
96	96	provided by Subsection (b), a [A] tax at the rate of 14 percent is
97	97	imposed on the gross receipts of a permittee received from the sale,
98	98	preparation, or service of mixed beverages or from the sale,
99	99	preparation, or service of ice or nonalcoholic beverages that are
100	100	sold, prepared, or served for the purpose of being mixed with an
101	101	alcoholic beverage and consumed on the premises of the permittee.
102	102	(b) A tax at the rate of 10 percent is imposed on the gross
103	103	receipts of a permittee classified as a live music presenter under
104	104	Section 183.002 received from the sale, preparation, or service of
105	105	mixed beverages or from the sale, preparation, or service of ice or
106	106	nonalcoholic beverages that are sold, prepared, or served for the
107	107	purpose of being mixed with an alcoholic beverage and consumed on
108	108	the premises of the live music presenter.
109	109	SECTION 3. This Act takes effect September 1, 2013.