BILL NUMBER: S9407
SPONSOR: GONZALEZ
 
TITLE OF BILL:
An act to amend the tax law, in relation to clarifying that admission
charges for a comedy performance are eligible for an exemption on sales
tax
 
PURPOSE OR GENERAL IDEA OF BILL:
Relates to exempting comedy performances from sales tax.
 
SUMMARY OF PROVISIONS:
Section 1 amends paragraph 5 of subdivision (d) of section 1101 of the
tax law to include scripted or unscripted stand-up comedy.
Section 2 amends paragraph 12 of subdivision (d) of section 1101 of the
tax law to add a new subparagraph B which establishes that any estab-
lishment that provides live, scripted or unscripted stand-up comedy or
similar comedic performances upon a stage designated for such purposes
shall be deemed a roof garden, cabaret or other similar place.
Section 3 sets the effective date.
 
JUSTIFICATION:
According to a report by Bloomberg, stand-up comedy has tripled in size
over the last decade. Under the tax law, sales tax is not applied to
certain admissions charges for events such as live dramatic, choreo-
graphic, and musical arts performances. Meanwhile, stand-up comedy
exists in a gray area, where the performances are similar to those
excluded from collecting sales tax but are not included in the statute.
This gray area has resulted in an inconsistent imposition of sales tax
across venues. The inconsistency in enforcement means that smaller,
local venues face challenges around collection, competition from venues
for whom the tax is not applicable and can offer tickets at a lower
price, and a potentially greater risk of disproportionate collection.
This bill seeks to remedy that by formally including venues offering
stand-up comedy with similar institutions, like cabarets, in the sales
tax exemption.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the first day of a sales tax quarterly
period commencing at least 60 days after this shall have become law.

Statutes affected:
S9407: 1101 tax law