NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5593
SPONSOR: Zebrowski TITLE OF BILL:
An act to amend the tax law, in relation to creating tax parity by
imposing an eight and one-half percent tax on all combative sport event
ticket sales
PURPOSE OR GENERAL IDEA OF THE BILL:
This bill provides parity in the tax of gross receipts from tickets
sales imposed upon combative sports and requires revenue generated from
digital streaming of professional and amateur boxing, sparring and wres-
tling matches or exhibitions to be subject to taxation.
SUMMARY OF PROVISIONS:
Section one of the bill amends Section 452 of the tax law, as it relates
to changing the taxation of gross receipts from ticket sales at any
professional or amateur boxing, sparring or wrestling match or exhibi-
tion from three percent to eight and one-half percent. Additionally,
section 452 of the tax law is amended by adding gross receipts from
digital streaming over the internet to the three percent tax imposed
upon broadcasting rights of any professional or amateur boxing, sparring
or wrestling match.
Section two of the bill relates to the effective date.
JUSTIFICATION:
Currently, ticket sales from professional and amateur mixed martial arts
events are taxed at a higher percentage than other combative sports such
as boxing, sparring or wrestling. This bill would equalize the taxation
of ticket sales among the respective sports. Additionally, mixed
martial arts events must include digital streaming revenue in a three
percent tax on broadcasting rights. Professional and amateur boxing,
sparring and wrestling events do not have to include revenue from
digital streams in this tax. This bill will require these events to
include revenue from streaming in the three percent tax. This bill
creates tax parity between the different combative sports.
LEGISLATIVE HISTORY:
A11269 of 2017-18
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Increase in tax revenue from combative sporting events.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
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5593
2019-2020 Regular Sessions
IN ASSEMBLY
February 13, 2019
___________
Introduced by M. of A. ZEBROWSKI -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to creating tax parity by
imposing an eight and one-half percent tax on all combative sport
event ticket sales
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 452 of the tax law, as amended by
2 chapter 32 of the laws of 2016, is amended to read as follows:
3 1. On and after October first, nineteen hundred ninety-nine, a tax is
4 hereby imposed and shall be paid upon the gross receipts of every person
5 holding any professional or amateur boxing, sparring or wrestling match
6 or exhibition in this state. Such tax shall be imposed on such gross
7 receipts, exclusive of any federal taxes, as follows:
8 (a) [three] eight and one-half percent of gross receipts from ticket
9 sales[, except that in no event shall the tax imposed by this paragraph
10 exceed fifty thousand dollars for any match or exhibition];
11 (b) three percent of the sum of: (i) gross receipts from broadcasting
12 rights, and (ii) gross receipts from digital streaming over the inter-
13 net, except that in no event shall the tax imposed by this paragraph
14 exceed fifty thousand dollars for any match or exhibition.
15 § 2. This act shall take effect immediately and shall apply to taxes
16 imposed on and after such effective date. Effective immediately the
17 addition, amendment and/or repeal of any rule or regulation necessary
18 for the implementation of this act on its effective date are authorized
19 to be made and completed on or before such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06479-01-9
