AN ACT to amend Tennessee Code Annotated, Title 4; Title 47 and Title 67, relative to tickets.
Impact
This bill will create a dedicated funding stream for the live music and performance venue fund, from which economic development grants may be distributed to assist local performers and venues. The collected funds are intended to support initiatives that promote live music, thereby fostering the arts and boosting local economies in Tennessee. This new regulation places responsibilities on ticket resellers to collect and remit this support levy to the state’s department of revenue, ensuring compliance and oversight.
Summary
House Bill 2135, known as the 'Tennessee Live Music Support Act', aims to enhance the support for live music and performance venues within Tennessee. This act introduces a new surcharge of five percent on the sales price of tickets sold in the secondary ticketing market for non-sport related live events. The intent is to generate additional revenue that can be reinvested back into the local live music economy, aiding promoters, venues, and performers facing challenges in the industry. The law is set to take effect on July 1, 2027, allowing time for transition and implementation.
Contention
While proponents of HB2135 argue that the act will bolster the economic viability of local arts and culture, critics may perceive it as an additional financial burden on ticket resellers and, indirectly, ticket buyers. The potential for added costs in purchasing secondary market tickets could deter consumers, leading to concerns about the implications for accessibility and attendance at live events. Additionally, there may be discussions around the effectiveness and equity of such support mechanisms for smaller versus larger venues and events.