Bill Caption

Relating to the creation of the Texas music incubator rebate program to provide for rebates of a portion of certain taxes collected from certain music venues and promoters of certain music festivals.

Fiscal Notes

Estimated Two-­year Net Impact to General Revenue Related Funds for SB 609, Committee Report 1st House, Substituted: a negative impact of ($20,200,000) through the biennium ending August 31, 2023.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. 

Bill Analysis

SB 609 would use taxes from the mixed beverage gross receipts and sales tax receipts attributable to the sale of beer and wine to fund the establishment and operations of a Texas music incubator rebate program. This program would fund the full or partial rebates of the mixed beverage gross receipts taxes and sales tax receipts collected at eligible music venues and music festival events. 

Vote Recommendation Notes

Texas Action recommends opposing SB 609 because it violates our principles of limited government and free market. The state should not be providing incentives for music venues to provide more live music performances. If the concern is that music venues and festivals are disappearing due to increased operating costs, then a better limited government solution would be to lower taxes associated with these operating costs across the board, rather than establish a rebate program. The best economic model is one in which taxes are low rate and broad-based, and regulation is light, sensible, and transparent.