GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	1 

SENATE BILL 1001

Short Title:  Expand Amusement Tax Exemption.	(Public)

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Sponsors: Senators Kinnaird; Allran, Horton, and Weinstein.

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Referred to:  Finance.

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April 21, 1997

A BILL TO BE ENTITLED
AN ACT TO EXPAND THE AMUSEMENTS TAX EXEMPTION FOR NONPROFIT PERFORMING ARTS CORPORATIONS.
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-37.1(a) reads as rewritten:
"(a)	Every person 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 the admission charges are made.
In addition to the license tax levied above, the taxpayer shall pay an additional tax upon the gross receipts of the business at the rate of three percent (3%).  Reports shall be made to the Secretary within the first 10 days of each month covering all taxable gross receipts for the previous month, and the gross receipts tax shall be paid monthly at the time the reports are made. The annual license tax shall be treated as an advance payment of the gross receipts tax and shall be applied as a credit upon or advance payment of the gross receipts tax.
Every person 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 the charges are made, and, in addition, a tax upon the gross receipts derived from admission charges at the rate of three percent (3%). The additional tax upon gross receipts shall be levied and collected in accordance with rules adopted by the Secretary.  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 these events shall be exempt from the gross receipts tax when the entire proceeds of the dances or other amusements are used exclusively for the school or civic and charitable purposes of the organizations and not to defray the expenses of the organization conducting the dance or amusement. The mere sponsorship of dance or other amusement by such a school, civic, or fraternal organization does not exempt the 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 required by this paragraph.
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. '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 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."
Section 2.  This act becomes effective July 1, 1997.