|(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Customer--Any person on the premises of a sexually oriented business except: (A) an owner, operator, independent contractor of the business or an employee of that sexually oriented business; or (B) a person who is on the premises exclusively for repair or maintenance of the premises or for the delivery of goods to the premises. (2) Nude--To be entirely unclothed, or clothed in a manner that leaves uncovered or visible through less than fully opaque clothing any portion of the breasts below the top of the areola of the breasts, if the person is female, or any portion of the genitals or buttocks. (3) Sexually oriented business--A nightclub, bar, restaurant, or similar commercial enterprise that: (A) provides for an audience of two or more individuals live nude entertainment or live nude performances; and (B) authorizes on-premises consumption of alcoholic beverages, regardless of whether the consumption of alcoholic beverages is under a license or permit issued under the Alcoholic Beverage Code. (b) Questionnaire. A sexually oriented business, as defined in this section, is required to complete and submit a Texas sexually oriented business fee questionnaire on a form prescribed by the comptroller to file the report and remit the fee imposed under Business and Commerce Code, Chapter 47. (c) Imposition and Calculation of Fee. (1) A $5.00 fee is imposed on a sexually oriented business for each entry by each customer admitted to the business. In determining the amount of fee due by a sexually oriented business for more than one entry by the same customer on the same business day at the same location, it shall be presumed to have been one entry by the customer and the fee amount due from the business for the entry is $5.00. A business day begins when the business opens and continues until the close of business. (2) A sexually oriented business has the discretion to determine how it will derive the money to pay the fee. All door and cover charges, including reimbursement of the sexually oriented business fee from its customers, are subject to sales tax as provided by Tax Code, Chapter 151. A sexually oriented business that chooses to recover the fee from its customer by including a separately stated charge for the fee on the customer check or invoice must clearly identify the charge as a reimbursement. 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 in addition to the $5.00 entry fee. (3) A business that holds occasional events described in subsection (a)(3) of this section, but does not habitually engage in the activity described in subsection (a)(3) of this section is liable for the sexually oriented business fee for those occasional events. For example, a nightclub that hosts a wet t-shirt contest is liable for the fee based upon attendance during the event. (d) Report forms. The sexually oriented business fee must be reported on a form as prescribed by the comptroller. The fact that the sexually oriented business does not receive the form or does not receive the correct form from the comptroller for the filing of the return does not relieve the business of the responsibility of filing a return and remitting the fee. (e) Due date of report and payment. (1) The sexually oriented business fee report and payment are due no later than the 20th day of the month following the calendar quarter month in which the liability for the fee is incurred. (2) A sexually oriented business must file a quarterly report even if there is no fee to report. (f) Penalty. Penalties due on delinquent fees and reports shall be imposed as provided by Tax Code, §111.061. (g) Interest. Interest due on delinquent fees shall be imposed as provided by Tax Code, §111.060. (h) Records required. (1) A sexually oriented business is required to maintain records, statements, books, or accounts necessary to determine the amount of fee for which the business is liable to pay. (2) A sexually oriented business shall record daily the number of customers admitted to the business. The manner in which a sexually oriented business maintains records of the number of customers admitted to the business may be written, stored on data processing equipment, or may be in any form that the comptroller may readily examine. (3) The comptroller or an authorized representative has the right to examine any records or equipment of any person liable for the fee in order to verify the accuracy of any report made or to determine the fee liability in the event no return is filed. (4) Records required by the comptroller must be kept for at least four years after the date on which the records are prepared. A business must make records available for inspection and audit on request by the comptroller. (i) Failure to keep accurate records. If a sexually oriented business fails to keep accurate records of the number of customers admitted to the business the comptroller may estimate the amount of fee liability based on any available information that includes, but is not limited to, any reports required to be filed per Tax Code, Chapter 151 or Chapter 183.