Businesses that provide live nude entertainment or live nude performances for an audience of two or more individuals, and authorize on-premises consumption of alcoholic beverages, regardless of whether the businesses are required to hold a license or permit under the Alcoholic Beverage Code, must pay this fee for each customer admitted (Texas Business and Commerce Code §47.051 - 47.056).
Complete Form AP-225, Texas Sexually Oriented Business Fee Questionnaire (PDF), and submit it to the Comptroller's office via fax (888-908-9997, Attention: Miscellaneous Taxes) or email (email@example.com).
The SOBF report and fee are due by the 20th day of the month following each calendar quarter. If the due date falls on a Saturday, Sunday or legal holiday, the next working day is the due date.
You are required to maintain adequate records, statements, books and accounts that allow you to calculate and the Comptroller to verify the SOBF for which you are liable.
Specifically, you must record daily the number of customers admitted to your business. This information can be written, stored electronically or in any form that the Comptroller's office can easily examine.
Yes. The law gives you the discretion to determine how you will derive the money to pay the SOBF. However, all door and cover charges, including a pass-through of the sexually oriented business fee directly to customers as part of the admission, are subject to sales tax, so if you collect the SOBF from your customers, you must also collect and remit sales tax on the fee.
A charge not clearly identified as reimbursement of the fee is considered a tax collected from the customer, and these amounts must be remitted to the Comptroller's office in addition to the $5.00 entry fee.
This situation is considered to be one entry for which the business owes $5.00. A business day begins when the business opens and continues until the close of business. See Rule 3.722.
If you host even one event that meets the definition of a sexually oriented business, you are responsible for the fee based upon attendance during the specific event. Complete and submit to the Comptroller's office Form AP-225, Texas Sexually Oriented Business Fee Questionnaire (PDF), and remit the SOBF. We will create an account so the business can file the quarterly report and pay the fee.
This type of business is not liable for the SOBF, because it does not provide live nude entertainment for an audience of two or more individuals.
By law, the first $25 million in revenue generated by the fee is dedicated to the Sexual Assault Program Fund. This fund covers the costs of programs that relate to sexual assault prevention, intervention and research provided by state, local and nonprofit agencies. Any excess revenue is deposited to the Texas Health Opportunity Pool and used only to provide health benefits coverage premium payment assistance to low-income persons.