A BILL TO BE ENTITLED
AN ACT to modernize and equalize the admissions tax by extending it to internet ticket resellers, to apply the tax only to the charge for admission to an event and not to extra amenities, and to require the secretary of revenue to provide advance notice of certain revised interpretations of the department.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑37.1 reads as rewritten:
"§ 105‑37.1.  Live entertainment and ticket resales.
(a)	Scope. – A privilege tax is imposed on the following:
(1)	The gross admissions receipts of a person who is engaged in providing admission to live entertainment of any kind. Gross admissions receipts under this subdivision do not include charges for amenities. If charges for amenities are not separately stated on the face of an admission ticket, then the charge for admission is considered to be equal to the admission charge for a ticket to the same event that does not include amenities and is for a seat located  directly in front of or closest to a seat that includes amenities.
(2)	The gross admissions receipts of a person who is engaged in the business of reselling on the Internet under G.S. 14‑344.1 an admission ticket that is taxable under subdivision (1) of this subsection. If the price of an admission ticket is printed on the face of the ticket, gross receipts under this subdivision exclude the face price. If the price of an admission ticket is not printed on the face of the ticket, the tax under this subdivision applies to the difference between the amount the reseller paid for the ticket and the amount the reseller charges for the ticket.
	
(b)	Rate and Payment. – The rate of the privilege tax imposed by this section is three percent (3%). The tax is due when a return is due. A return is due by the 10th day after the end of each month and covers the gross receipts received during the previous month.
(c)	Advance Report. – A person who owns or controls a live entertainment performance subject to the tax imposed by this section and who plans to bring the performance to this State from outside the State must file a statement with the Secretary that lists the dates, times, and places of the performance. The statement must be filed no less than five days before the first performance in this State.
(d)	Local Taxes. – Cities may levy a license tax on a person taxed under subdivision (a)(1) of this section; however, the tax may not exceed twenty‑five dollars ($25.00) for each day or part of a day the live entertainment is performed at each location. Cities may not levy a license tax on a person taxed under subdivision (a)(2) of this section.
Counties may not levy a license tax on a person taxed under this section. "
SECTION 2.  G.S. 14‑344.1(e) is repealed.
SECTION 3.  If any provision of this act is declared by a court to violate the Internet Tax Freedom Act, Pub. L. 105‑277, §§ 1100‑1104, as amended, or is otherwise found to be invalid, then G.S. 14‑344.1 is repealed.
SECTION 4.  G.S. 105‑264(c) reads as rewritten:
"(c)	Revised Interpretations. – This section does not prevent the Secretary from changing an interpretation, and it does not prevent a change in an interpretation from applying on and after the effective date of the change. An interpretation that revises a prior interpretation by expanding the scope of a tax or otherwise increasing the amount of tax due may not become effective sooner than the following:
(1)	For a tax that is payable on a monthly or quarterly basis, the first day of a month that is at least 90 days after the date the revised interpretation is issued.
(2)	For a tax that is payable on an annual basis, the first day of a tax year that begins after the date the revised interpretation is issued."
SECTION 5.  G.S. 105‑37.1(a)(2), as amended by Section 1 of this act, becomes effective January 1, 2011, and applies to admission tickets sold on or after that date.  The remainder of Section 1 of this act and Section 2 of this act become effective August 1, 2010.  G.S. 105‑37.1(a)(1), as amended by Section 1 of this act, applies to charges for admission received on or after August 1, 2010.  The remainder of this act is effective when it becomes law.