OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 316 Bill Analysis
135th General Assembly
Click here for S.B. 316’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. Smith
Effective date:
Kitty Sorah, Attorney
SUMMARY
▪ Creates a music incubator program to provide rebates to qualifying music venues and
festival promoters.
▪ Calculates the rebates based upon the sales tax collected by a venue or promoter from
the sale of beer and wine, up to $100,000 per year.
▪ Caps the total amount of rebates allowed per fiscal year at $10 million.
▪ Allocates $10 million of general state sales tax revenue to the fund each fiscal year to be
used for the rebates.
DETAILED ANALYSIS
Music incubator program
The bill creates a music incubator program within the Department of Development (DEV)
to provide rebates to qualifying music venues and festival promoters. The purpose of the rebate
is to provide funding for venues and promoters to recruit performing artists and bring live musical
performances to the state. The rebate equals the amount of sales tax collected by the venue or
promoter from the sale of beer and wine during the preceding fiscal year, up to $100,000.
Program eligibility
Music venues or festival promoters must meet the following criteria for two years before
applying for the rebate:
▪ Hold a sales tax vendor’s license;
▪ In the case of a music venue, have an audience capacity of 3,000 people or less;
▪ In the case of a festival promoter, have held a music festival in a county with a population
of less than 100,000;
November 19, 2024
Office of Research and Drafting LSC Legislative Budget Office
▪ In either case, have a written contract with a music artist for a live performance where
the artist’s compensation includes a specified percentage of ticket or other sales during
the performance, or a guaranteed amount before the performance;
▪ In either case, meet at least five or more other criteria, including: (1) marketing live
performances in printed or electronic publications, (2) providing live performances five or
more nights per week, (3) employing individuals who perform sound engineering,
booking, promoting, stage management, or security services, (4) having live performance
and audience space, (5) providing technical sound and lighting support, (6) having storage
space for audio equipment or musical instruments, (7) applying cover charges for
performances, or (8) maintaining operating hours that coincide with live music
performance show times.1
DEV may begin accepting rebate applications in 2025, with applications due yearly on
September 1. DEV must allow applicants to apply electronically, either by email or by uploading
an application to a DEV website.
Applications will be reviewed in the order in which they are received. Before approving
an application, DEV must determine that the music venue or festival promoter provides, or has
committed to provide, an economic benefit to its community and to the state’s music industry,
including live music performers.2
Rebate amounts and limits
If approved, a music venue or festival promoter will receive a rebate equal to the amount
of sales tax collected from sales of beer and wine during the preceding fiscal year, up to $100,000.
The venue or promoter must use the rebate to recruit performing artists and provide live musical
performances. DEV can require a venue or promoter to provide receipts or similar documents
demonstrating that the venue or promoter used the rebate for those purposes. DEV can also
require the venue or promoter to repay all or part of the rebate if the venue or promoter fails to
provide such documentation or if DEV determines that the venue or promoter spent the rebate
for any other purpose.
The total amount of rebates awarded in any fiscal year cannot exceed $10 million.3
Sales tax allocations
To cover the cost of the rebate program, the bill creates the Music Incubator Rebate Fund
and allots to the fund the first $10 million of all state sales taxes deposited into the state treasury
1 R.C. 122.97(A).
2 R.C. 122.97(B).
3 R.C. 122.97(C), (D), and (E).
P a g e |2 S.B. 316
As Introduced
Office of Research and Drafting LSC Legislative Budget Office
per fiscal year, beginning in FY 2026.4 At the end of each fiscal year, if any money remains
unallocated to rebates in the fund for that year, the excess must be transferred to the GRF.5
HISTORY
Action Date
Introduced 09-24-24
ansb0316in-135/ks
4 R.C. 5739.21.
5 R.C. 122.97(F).
P a g e |3 S.B. 316
As Introduced


Statutes affected:
As Introduced: 5739.21