National Legislative Update
Although it is only four months into the new
year, the
ticketing industry is facing several legislative proposals that
could
negatively affect how and where ticket resellers do
business.
Early
in 2009, Arkansas passed a bill prohibiting Internet sales until
after the
event-authorized onsale date, Colorado permanently tabled a bill
affecting
resale, and Virginia passed a ban on the use of software
bots.
More
recent developments are taking place in California, Connecticut,
Florida,
Hawaii, Illinois, Indiana, Minnesota, Mississippi, Montana, New
Jersey,
New York, North Carolina, Oklahoma, Oregon, Pennsylvania, and
Rhode
Island.
In the way of tax bills, Connecticut is proposing
to tax
out-of-state retailers who use in-state affiliates to sell
products, as is
California. Montana has a tax bill as well, but focuses on gross
ticket
sales. Mississippi is proposing a $2 fee added to ticket prices.
Oklahoma
plans to exempt taxes on certain tickets for performing arts
organizations, but remove exemptions for museums and production
companies.
North Carolina wants to impose a privilege license tax on gross
receipts
and a remote Internet sales tax.
Pennsylvania and
Illinois are
considering legislation that would prohibit and punish the use of
software
bots. Rhode Island wants to allow complimentary distribution of
tickets to
boxing matches.
The states to watch, however, are New
York, North
Carolina, Florida, and Minnesota. Minnesota is currently
reviewing a
proposal to stop the diversion of tickets from the primary seller
to a
secondary source, but language has been proposed that prohibits
early
Internet sales. New York right now is faced with the sunset
provision in
its ticket resale law and must decide whether to continue to
allow ticket
resale. New Jersey has communicated a desire to propose
legislation
prohibiting resale of tickets at above face value, but no
language has
been forthcoming. Lastly, Florida is dealing with proposals to
prevent
resale of $1 over face value for tickets by or benefitting a
charitable
organization, but also with a bill asking for more transparency
in the
primary ticketing process.
The Better Ticketing
Association and
TicketNetwork are working hard to keep track of these bills and
maintain
ongoing discussions with state officials and legislators.
For a
comprehensive look at the current national legislative scheme,
you can
read an update from Ticket
News.
If you need more information or would like to
contact
the Better Ticketing Association, you may do so via email.
Disclaimer: The Better Ticket Association is
a
TicketNetwork-sponsored organization. The contents of this
newsletter
should not be interpreted as legal advice, and are for
information only.
TicketNetwork recommends you speak with your lawyer and/or
accountant for
any and all legal guidance and recommendations.
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