Relates to increasing the boxing and wrestling exhibitions tax

BILL NUMBER:A9178

Title of bill

An act to amend the tax law, in relation to increasing the boxing and wrestling exhibitions tax

Purpose or general idea of bill

To increase the gross receipts and broadcasting rights tax for boxing and professional wrestling matches from three percent to five and three-quarters percent. The bill will also eliminate the current tax cap on boxing and professional wrestling events.

Summary of specific provisions

Section 1. Subdivision (a) and (b) of section 452 of the tax law, as added by section 2 of part F of chapter 407 of the laws of 1999, are amended to read as follows: (a) five and three-quarters percent of gross receipts from ticket sales { except that in no event shall the tax imposed by this subdivision exceed fifty thousand dollars for any match or exhibition}; (b) five and three-quarters percent of gross receipts from broadcasting rights {except that in no event shall the tax imposed by this subdivision exceed fifty thousand dollars for any match of exhibition},

Justification

This legislation will raise the amount New York State taxes gross receipts and broadcasting rights for boxing and professional wrestling matches from three percent to five and three-quarters percent It will also remove the fifty thousand dollar tax cap for these events. These measures will increase revenue for New York State, which will aid in reducing New York's budget deficit.

Prior legislative history

New Bill

Fiscal implications

Undetermined

Effective date

This act shall take effect November 1, 2009, and shall apply to gross receipts from boxing, sparring or wrestling matches and exhibitions held on or after that date.