By: Hopson H.B. No. 4417
A BILL TO BE ENTITLED
AN ACT
relating to the cigars and tobacco products tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 155, Tax Code, Section
155.001 is amended to read as follows:
Sec. 155.001. DEFINITIONS. In this chapter:
(1-a) "Affiliate" means a person who controls, is controlled by,
or is under common control with another person.
(1-b) "Bonded agent" means a person in this state who is an agent
of a person outside this state and receives cigars and tobacco
products in interstate commerce and stores the cigars and tobacco
products for distribution or delivery to distributors under orders
from the person outside this state.
(2) "Cigar" means a roll of fermented tobacco that is wrapped in
tobacco and the main stream of smoke from which produces an alkaline
reaction to litmus paper.
(3) "Commercial business location" means the entire premises
occupied by a permit applicant or a person required to hold a permit
under this chapter.
(4) "Common carrier" means a motor carrier registered under
Chapter 643, Transportation Code, or a motor carrier operating
under a certificate issued by the Interstate Commerce Commission or
a successor agency to the Interstate Commerce Commission.
(5) "Consumer" means a person who possesses tobacco products for
personal consumption.
(6) "Distributor" means a person who:
(A) receives tobacco products for the purpose of making a
first sale in this state from a manufacturer outside the state or
within the state or otherwise brings or causes to be brought into
this state tobacco products for sale, use, or consumption;
(B) manufactures or produces tobacco products; or
(C) is an importer or import broker.
(7) "Export warehouse" means a person in this state who receives
tobacco products from manufacturers and stores the tobacco products
for the purpose of making sales to authorized persons for resale,
use, or consumption outside the United States.
(8) "First sale" means, except as otherwise provided by this
chapter:
(A) the first transfer of possession in connection with a
purchase, sale, or any exchange for value of tobacco products in
intrastate commerce;
(B) the first use or consumption of tobacco products in this
state; or
(C) the loss of tobacco products in this state whether
through negligence, theft, or other unaccountable loss.
(9) "Importer" or "import broker" means a person who ships,
transports, or imports into this state tobacco products
manufactured or produced outside the United States for the purpose
of making a first sale in this state.
(10) "Manufacturer" means a person who manufactures or produces
tobacco products and sells tobacco products to a distributor or an
affiliate of the person.
(11) "Manufacturer's representative" means a person employed by a
manufacturer to sell or distribute the manufacturer's tobacco
products.
(12) "Permit holder" means a bonded agent, distributor,
wholesaler, manufacturer, importer, or retailer required to obtain
a permit under Section 155.041.
(13) "Place of business" means:
(A) a commercial business location where tobacco products
are sold;
(B) a commercial business location where tobacco products
are kept for sale or consumption or otherwise stored; or
(C) a vehicle from which tobacco products are sold.
(14) "Retailer" means a person who engages in the practice of
selling tobacco products to consumers and includes the owner of a
coin-operated vending machine.
(15) "Tobacco product" means:
(A) a cigar;
(B) smoking tobacco, including granulated, plug-cut,
crimp-cut, ready-rubbed, and any form of tobacco suitable for
smoking in a pipe or as a cigarette;
(C) chewing tobacco, including Cavendish, Twist, plug,
scrap, and any kind of tobacco suitable for chewing;
(D) snuff or other preparations of pulverized tobacco; or
(E) an article or product that is made of tobacco or a
tobacco substitute and that is not a cigarette.
(16) "Wholesaler" means a person, including a manufacturer's
representative, who sells or distributes tobacco products in this
state for resale but who is not a distributor.
SECTION 2. This Act takes effect September 1, 2009.