83R22910 ADM-D
By: Strama H.B. No. 3095
Substitute the following for H.B. No. 3095:
By: Hilderbran C.S.H.B. No. 3095
A BILL TO BE ENTITLED
AN ACT
relating to the mixed beverage tax imposed on certain venues that
present live music; authorizing a fee; decreasing the rate of a tax.
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, sexually
oriented businesses, stadiums, and 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 five 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 10 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.