August 25, 1993 

 

 

 

Mr. Jack W. Garison 

Executive Director 

Texas Department of Licensing 

  and Regulation 

920 Colorado Street 

Austin, Texas  78701

Letter Opinion No.  93-67 

 

Re:   Whether section 11(a) of the

Boxing and Wrestling Act, V.T.C.S. 

article 8501-1, authorizes the Texas 

Department of Licensing and Regulation 

to collect a three percent gross receipts 

tax on proceeds the promoter obtains 

from the sale of television rights   

(RQ-584)



 

Dear Mr. Garison: 

 

	You have asked us to interpret section 11(a) of the Texas Boxing and Wrestling 

Act (the "act"), V.T.C.S. article 8501-1.  Section 11(a) provides as follows: 

 

	Any person who conducts a boxing match, contest, or 

exhibition  wherein an admission fee is charged shall furnish to the 

[Texas Department of Licensing and Regulation] within 72 hours 

after the termination of the event a duly verified report on a form 

furnished by the department showing the number of tickets sold, 

prices charged, and amount of gross receipts obtained from the 

event.  A cashier's check or money order made payable to the State 

of Texas in the amount of three percent of the total gross receipts of 

the event shall be attached to the verified report.  [Footnote and 

emphasis added.] 

 

In particular, you ask whether section 11(a) authorizes the Texas Department of 

Licensing and Regulation (the "department") to collect from a promoter a three percent 

gross receipts tax on proceeds the promoter obtains from the sale of the right to televise 

the match.  We conclude that it does not. 

 

	In essence, your question requires us to determine whether the term "gross 

receipts obtained from the event," as section 11(a) of the act uses it, includes revenues a 

promoter receives from the sale of the right to televise the match as well as revenues 

from sales of admissions to the event.  The act itself does not define "gross receipts 

obtained from the event."   We note, however, that section 11(a) requires a promoter to 

complete a duly verified report "showing the number of tickets sold, prices charged, and 

amount of gross receipts obtained from the event."  We believe the legislature intended 

the "amount of gross receipts obtained from the event" to equal the product of the 

number of tickets sold and the prices charged.  If the legislature intended otherwise, we 

believe that the legislature would have required the promoter to report, as a line item, at 

least the amount of revenue from a source other than the sale of admissions.  

Accordingly, we conclude that section 11(a) of the act does not authorize the department 

to collect a three percent gross receipts tax on proceeds the promoter obtains from the 

sale of the right to televise the match. 

 

	S  U  M  M  A  R  Y 

 

	Section 11(a) of the Boxing and Wrestling Act, V.T.C.S. article 

8501-1, does not authorize the Texas Department of Licensing and 

Regulation to collect a three percent gross receipts tax on proceeds 

the person conducting the boxing match obtains from the sale of the 

right to televise the match. 

 

						Yours very truly, 

 

 

 

						Kymberly K. Oltrogge 

						Assistant Attorney General 

						Opinion Committee 





LO- 

LDB 

 

ID#-20555 

 

 

 

INDEX HEADINGS 

 

STATE BOARDS, COMMISSIONS, DEPARTMENTS 

	DEPARTMENT OF LICENSING AND REGULATION 

STATUTORY CONSTRUCTION 

TAXES AND TAXATION 

______________________________ 

 

______________________________  

 



 Article 8501-1, section 3(9), V.T.C.S., defines "boxing promoter" as "a person to be licensed by 

the [Texas Department of Licensing and Regulation] who . . . conducts a boxing contest, match, or 

exhibition." 

 In Attorney General Opinion MW-316 (1981) this office considered whether the term "gross 

receipts" as used in the context of article 8501-1, section 11 means "the sum total of all admission 

charges for a given event."  Attorney General Opinion MW-316 (1981) at 1.  The question arose from an 

argument various promoters were making that the three percent gross receipts tax should be calculated on 

the total receipts after deducting the three percent tax.  Id.  In that context, we concluded that "the term 

'gross receipts' as used in section 11(a) of article 8501-1, V.T.C.S., means the sum total of all admission 

charges for a given event."  Id. at 2.  Because Attorney General Opinion MW-316 considered a question 

that is not before us here, its definition of "gross receipts" is inapposite.   

Mr. Jack W. Garison  -  Page  2