GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 322

Short Title:  Increase State Admissions Tax.	(Public)
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Sponsors: Representative Gamble.
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Referred to:  Finance.
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March 25, 1991

A BILL TO BE ENTITLED
AN ACT TO INCREASE THE STATE TAX ON GROSS RECEIPTS DERIVED FROM THE BUSINESS OF OFFERING ENTERTAINMENT OR AMUSEMENT FOR WHICH AN ADMISSION IS CHARGED, AND TO PROVIDE THAT MOTION PICTURES SHALL BE TAXED IN THE SAME WAY AS OTHER ENTERTAINMENT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-36.1 and G.S. 105-37 are repealed.
Sec. 2.  G.S. 105-37.1(a) reads as rewritten:
"(a)	Every person, firm, or corporation engaged in the business of giving, offering or managing any form of entertainment or amusement not otherwise taxed or specifically exempted in this Article, for which an admission is charged, shall pay an annual license tax of fifty dollars ($50.00) for each room, hall, tent or other place where such admission charges are made.
In addition to the license tax levied above, such person, firm, or corporation shall pay an additional tax upon the gross receipts of such business at the rate of six percent (6%).  Reports shall be made to the Secretary of Revenue, in such form as he may prescribe, within the first 10 days of each month covering all such gross receipts for the previous month, and the additional tax herein levied shall be paid monthly at the time such reports are made.  The annual license tax herein levied shall be treated as an advance payment of the tax upon gross receipts herein levied, and the annual license tax shall be applied as a credit upon or advance payment of the gross receipts tax.
Every person, firm, or corporation giving, offering, or managing any dance or athletic contest of any kind, except high school and elementary school athletic contests, for which an admission fee in excess of fifty cents (50¢) is charged, shall pay an annual license tax of fifty dollars ($50.00) for each location where such charges are made, and, in addition, a tax upon the gross receipts derived from admission charges at the rate of six percent (6%).  The additional tax upon gross receipts shall be levied and collected in accordance with such regulations as may be made by the Secretary of Revenue.  No tax shall be levied on admission fees for high school and elementary school contests.
Dances and other amusements actually promoted and managed by civic organizations and private and public secondary schools, shall not be subject to the license tax imposed by this section and the first one thousand dollars ($1,000) of gross receipts derived from such events shall be exempt from the gross receipts tax herein levied when the entire proceeds of such dances or other amusements are used exclusively for the school or civic and charitable purposes of such organizations and not to defray the expenses of the organization conducting such dance or amusement.  The mere sponsorship of dance or other amusement by such a school, civic, or fraternal organization shall not be deemed to exempt such dance or other amusement as provided in this paragraph, but the exemption shall apply only when the dance or amusement is actually managed and conducted by the school, civic, or fraternal organization and the proceeds are used as herein before required.
Dances and other amusements promoted and managed by a qualifying corporation that operates a center for the performing and visual arts are exempt from the license tax and the gross receipts tax imposed under this section if the dance or other amusement is held at the center.  'Qualifying corporation' means a corporation that is exempt from income tax under G.S. 105-130.11(a)(3).  'Center for the performing and visual arts' means a facility, having a fixed location, that provides space for dramatic performances, studios, classrooms and similar accommodations to organized arts groups and individual artists.  This exemption shall not apply to athletic events.
The license and gross receipts taxes imposed by this section do not apply to a person, firm, or corporation that is exempt from income tax under Article 4 of this Chapter and is engaged in the business of operating a teen center.  A 'teen center' is a fixed facility whose primary purpose is to provide recreational activities, dramatic performances, dances, and other amusements exclusively for teenagers."
Sec. 3.  G.S. 105-38(f) reads as rewritten:
"(f)	Upon all performances taxable under this section there is levied, in addition to the license tax levied in this section, a tax upon the gross receipts of such business at the rate of six percent (6%).  The license tax herein levied shall be treated as an advance payment of the tax upon gross receipts herein levied, and the license tax shall be applied as a credit upon or advance payment of the gross receipts tax.  The Secretary of Revenue may adopt such regulations as may be necessary to effectuate the provisions of this section and shall prescribe the form and character of reports to be made, and shall have such authority of supervision as may be necessary to effectuate the purpose of this Subchapter."
Sec. 4.  G.S. 105-102.5(d)(1) reads as rewritten:
"(1)	A person, firm, or corporation required to be licensed under G.S. 105-37.1, 105-62, 105-65.1, 105-74, 105-85, 105-89, or 105-89.1 is not required to procure for the same location the general business license imposed by this section."
Sec. 5.  This act becomes effective July 1, 1991.