Proposed Sections Before an agency may permanently adopt a new or amended section, or repeal an existing section, a proposal detailing the action must be published in the Texas Register at least 30 days before any action may be taken. The 30-day time period gives interested persons an opportunity to review and make oral or written comments on the section. Also, in the case of substantive sections, a public hearing must be granted if requested by at least 25 persons, a governmental subdivision or agency, or an association having at least 25 members. Symbology in proposed amendments. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 22. EXAMINING BOARDS Part XXV. Structural Pest Control Board Chapter 593. Licenses 22 TAC sec.593.21 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Structural Pest Control Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Structural Pest Control Board proposes the repeal of s593.21, concerning technician license standards. The section is being reproposed to reflect many changes in the licensure requirements. Benny M. Mathis, Jr., executive director, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Mr. Mathis also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be that the requirements for technician licensure are strengthened and licensees are better trained and educated. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Roger B. Borgelt, 9101 Burnet Road, Suite 201, Austin, Texas 78758. The repeal is proposed under Texas Civil Statutes, Article 135b-6, which provides the Structural Pest Control Board with the authority to establish standards for testing, licensing, and regulating persons engaged in the structural pest control business. sec.593.21. Technician License Standards. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas on December 31, 1991. TRD-9200020 Benny M. Mathis, Jr. Executive Director Structural Pest Control Board Earliest possible date of adoption: February 10, 1992 For further information, please call: (512) 835-4066 TITLE 34. PUBLIC FINANCE Part I. Comptroller of Public Accounts Chapter 3. Tax Administration Subchapter O. State Sales and Use Tax 34 TAC sec.3.298 The Comptroller of Public Accounts proposes an amendment to sec.3.298, concerning amusement services. The amendment makes changes authorized by the 72nd Legislature, 1991, First Called Session. Effective October 1, 1991, nonprofit country clubs described by the Internal Revenue Code of 1986, sec.501(c) (7), are required to collect sales tax from their members on various fees and dues such as initiation fees, membership dues, green fees, etc. Additionally, amusements provided jointly by the state, a municipality, county, school district, special district, political subdivision of the state or the United States, and a for-profit group are subject to sales tax. See subsection (g) of this section for specific exclusions from the amusement services exemption. Tom Plaut, chief revenue estimator, has determined that for the first five-year period the section is in effect there will be no significant revenue impact on state or local government as a result of enforcing or administering the section. This section is adopted under the Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. Dr. Plaut also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be in providing new information regarding tax responsibilities. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Lucy Glover, Manager, Tax Administration Division, P.O. Box 13528, Austin, Texas 78711. The amendment is proposed under the Tax Code, sec.111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2. sec.3.298. Amusement Services. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) (No change.) (2) Nonamusement services-Activities which are primarily instructional in nature or nontaxable personal services. Places and services not covered by the tax on amusement services include, but are not limited to: (A)-(F) (No change.) (G) cruises which last longer than 24 hours and extend offshore outside Texas territorial limits; [and] (H) fishing and hunting leases and guide services ; and
    [.] (I) sororities and fraternities. (3)-(5) (No change.) (6) Sales price of membership to country clubs, including clubs described by the Internal Revenue Code of 1986, sec.501(c)(7)-The sales price includes
      [Also included are] dues, initiation fees, and other charges, assessments, and fees required for a special privilege, status, or membership classification in a private club or organization. Whether or not the club has its own facilities is not relevant.
        Receipts subject to tax under the Texas Alcoholic Beverage Code, sec.202.02, are not included in the sales price of an amusement service. (7)
          [(6)] Seller of admissions to amusement services -A person who sells more than 10 admissions to amusement services during a 12-month period and includes those persons who hold themselves out as engaging, or who habitually engage, in the selling of admissions to amusement services. (8)
            [(7)] Sale of an amusement service admission -The transfer of title to or possession of a ticket or other admission document for a consideration or the collection of an admission, membership, or enrollment fee, whether by individual performance, subscription series, or membership privilege, or through the use of a coin-operated or credit-card-operated machine. The consideration paid may secure the admission privilege for an individual or a group of individuals. The contract or agreement whereby the right is secured for a provider to offer an amusement, recreation, or entertainment as an amusement service is not the sale of an admission to an amusement service and is not subject to sales tax, such as the paying of a fee to a singer for a performance that will be provided by the payer of the fee as an amusement service through the sales of tickets. (b) Charges to private club members and guests. The membership dues, initiation fees, and other assessments and fees charged for a special privilege, status, or membership classification in a private club or organization, including organizations described by the Internal Revenue Code of 1986, sec.501(c)(7), if the organizations provide amusements,
              are taxable. Taxable fees for special privileges in the organization include, but are not limited to, liquor pool dues, boat slip rental fees, golf cart storage fees, locker rental fees, locker room use fees, and fees for access to the restaurant and bar. Separate charges for amusement services by persons operating clubs or other facilities over and above amounts received for membership or initiation fees, such as green fees or fees for admissions to swimming pools, racketball courts, or tennis courts, are also taxable. Initiation fees which are refundable, as evidenced by a written agreement, are not taxable. [For charges for amusement services provided by nonprofit organizations, see subsection (g) of this section.] (c)-(f) (No change.) (g) Exemptions. (1) Sales tax is not due on the sale of an amusement service if the service is provided exclusively: (A) by a nonprofit organization, corporation, or association , other than organizations described by the Internal Revenue Code of 1986, sec.501(c)(7),
                if the proceeds do not go to the benefit of an individual, except as a part of the services of a purely public charity. Initiation and membership fees and other assorted fees charged by such a nonprofit organization, corporation, or association are not taxable. Examples would include: organizations, corporations, or associations recognized as nonprofit organizations under the Internal Revenue Code, s501(c), [nonprofit country clubs,] Kiwanis clubs, labor unions, sororities, fraternities,
                  and ex-students organizations. Organizations described by the Internal Revenue Code of 1986, sec.501(c)(7) that provide amusements, do not qualify for this exemption even though organized as nonprofit organizations; (B)-(G) (No change.) (2) (No change.) (3) Except as provided by paragraph (8) of this subsection, a
                    [A] nonprofit group may hire a for-profit organization to provide the expertise to produce an event without loss of the exemption provided by paragraph (1)(A) of this subsection. The nonprofit organization must hold itself out as the provider of the amusement and may not be a joint venturer with the for-profit entity. (4)-(7) (No change.) (8) Unless the event is for educational purposes, an agency of this state, city, county, school district, special district, political subdivision of this state, or the United States that hires a for-profit organization or any other organization not listed in the Tax Code, sec.151.3101(a)(1), to provide the expertise to produce or provide a musical concert or other amusement event loses the exemption provided in paragraph (1) of this subsection. These organizations must collect sales tax on admissions to amusement events provided by or in conjunction with the for-profit organization or other organizations not listed in the Tax Code, s151.3101(a)(1). (h)-(j) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas on January 2, 1992. TRD-9200026 Martin Cherry Chief, General Law Section Comptroller of Public Accounts Earliest possible date of adoption: February 10, 1992 For further information, please call: (512) 463-4028