Texas Music Incubator Program

Texas Music Incubator Program

HB 2806 - (Rep. Morrison) - SB 1832 (Sen. Alvarado)

 

TRA's Position

TRA is supporting legislation to create a mixed beverage tax rebate program, administered and established within the Texas Music Office for qualifying Texas music venues. The program would help to save these dwindling venues by assisting with costs such as paying/booking live music acts, marketing and promotion, along with venue and equipment upkeep.

Issue Overview

Live music is an intrinsic part of the cultural fabric of Texas. Throughout the years, Texas has borne some of the most iconic singer/songwriters of our time, and much has been done to preserve and protect this cultural and artistic legacy.

Central to this legacy are live music venues, which are the heart and soul of Texas’ live music scene. Unfortunately, storied dance halls, restaurants, and clubs throughout the state have disappearing, or scaling down their operations at an alarming pace, due to a variety of factors, including increased operating costs and state tax burdens among others.

TRA is supporting legislation to create a mixed beverage tax rebate program, administered and established within the Texas Music Office for qualifying Texas music venues. The program would help to save these dwindling venues by assisting with costs such as paying/booking live music acts, marketing and promotion, along with venue and equipment upkeep.  

The Texas Music Incubator Program (TMIP) would be funded by a small percentage of the mixed beverage gross receipts tax collected by qualified music venues and paid into a rebate fund. Additionally:

  • the Texas Music Office would consider rebate applications submitted via online portal based solely on the definition of music venue provided in statute. Each grant amount would be commensurate with the amount of tax paid by the qualified music venue and subject to a cap of $100,000,
  • music venues must meet the codified definition for at least two years prior to enactment of the statute,
  • the TMIP rebate fund would also have the authority to accept gifts, grants, contributions, and donations from individuals, corporations, foundations, and other non-profits,
  • the rebate fund shall not be eligible for sweeps to General Revenue at the end of each biennium,
  • tax rebates last for a period of one year and must be renewed annually through the application process,
  • to qualify as Texas music venue under this program, an establishment must meet a pre-specified criteria.

Bill's Intent

 

Status

HB 2806 was filed on February 28, 2019 by Representative Geanie Morrison. On April 2, HB 2806 was voted favorably as substituted by the House Culture, Recreation and Tourism Committee. SB 1832 was filed on March 7, 2019 by Senator Carol Alvarado and was referred to the Senate Business and Commerce Committee on March 18 (updated April 3).