| 1 | 1 | | By: Hopson H.B. No. 4417 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the cigars and tobacco products tax. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Subchapter C, Chapter 155, Tax Code, Section |
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| 9 | 9 | | 155.001 is amended to read as follows: |
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| 10 | 10 | | Sec. 155.001. DEFINITIONS. In this chapter: |
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| 11 | 11 | | (1-a) "Affiliate" means a person who controls, is controlled by, |
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| 12 | 12 | | or is under common control with another person. |
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| 13 | 13 | | (1-b) "Bonded agent" means a person in this state who is an agent |
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| 14 | 14 | | of a person outside this state and receives cigars and tobacco |
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| 15 | 15 | | products in interstate commerce and stores the cigars and tobacco |
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| 16 | 16 | | products for distribution or delivery to distributors under orders |
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| 17 | 17 | | from the person outside this state. |
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| 18 | 18 | | (2) "Cigar" means a roll of fermented tobacco that is wrapped in |
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| 19 | 19 | | tobacco and the main stream of smoke from which produces an alkaline |
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| 20 | 20 | | reaction to litmus paper. |
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| 21 | 21 | | (3) "Commercial business location" means the entire premises |
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| 22 | 22 | | occupied by a permit applicant or a person required to hold a permit |
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| 23 | 23 | | under this chapter. |
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| 24 | 24 | | (4) "Common carrier" means a motor carrier registered under |
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| 25 | 25 | | Chapter 643, Transportation Code, or a motor carrier operating |
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| 26 | 26 | | under a certificate issued by the Interstate Commerce Commission or |
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| 27 | 27 | | a successor agency to the Interstate Commerce Commission. |
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| 28 | 28 | | (5) "Consumer" means a person who possesses tobacco products for |
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| 29 | 29 | | personal consumption. |
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| 30 | 30 | | (6) "Distributor" means a person who: |
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| 31 | 31 | | (A) receives tobacco products for the purpose of making a |
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| 32 | 32 | | first sale in this state from a manufacturer outside the state or |
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| 33 | 33 | | within the state or otherwise brings or causes to be brought into |
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| 34 | 34 | | this state tobacco products for sale, use, or consumption; |
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| 35 | 35 | | (B) manufactures or produces tobacco products; or |
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| 36 | 36 | | (C) is an importer or import broker. |
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| 37 | 37 | | (7) "Export warehouse" means a person in this state who receives |
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| 38 | 38 | | tobacco products from manufacturers and stores the tobacco products |
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| 39 | 39 | | for the purpose of making sales to authorized persons for resale, |
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| 40 | 40 | | use, or consumption outside the United States. |
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| 41 | 41 | | (8) "First sale" means, except as otherwise provided by this |
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| 42 | 42 | | chapter: |
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| 43 | 43 | | (A) the first transfer of possession in connection with a |
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| 44 | 44 | | purchase, sale, or any exchange for value of tobacco products in |
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| 45 | 45 | | intrastate commerce; |
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| 46 | 46 | | (B) the first use or consumption of tobacco products in this |
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| 47 | 47 | | state; or |
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| 48 | 48 | | (C) the loss of tobacco products in this state whether |
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| 49 | 49 | | through negligence, theft, or other unaccountable loss. |
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| 50 | 50 | | (9) "Importer" or "import broker" means a person who ships, |
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| 51 | 51 | | transports, or imports into this state tobacco products |
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| 52 | 52 | | manufactured or produced outside the United States for the purpose |
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| 53 | 53 | | of making a first sale in this state. |
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| 54 | 54 | | (10) "Manufacturer" means a person who manufactures or produces |
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| 55 | 55 | | tobacco products and sells tobacco products to a distributor or an |
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| 56 | 56 | | affiliate of the person. |
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| 57 | 57 | | (11) "Manufacturer's representative" means a person employed by a |
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| 58 | 58 | | manufacturer to sell or distribute the manufacturer's tobacco |
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| 59 | 59 | | products. |
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| 60 | 60 | | (12) "Permit holder" means a bonded agent, distributor, |
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| 61 | 61 | | wholesaler, manufacturer, importer, or retailer required to obtain |
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| 62 | 62 | | a permit under Section 155.041. |
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| 63 | 63 | | (13) "Place of business" means: |
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| 64 | 64 | | (A) a commercial business location where tobacco products |
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| 65 | 65 | | are sold; |
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| 66 | 66 | | (B) a commercial business location where tobacco products |
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| 67 | 67 | | are kept for sale or consumption or otherwise stored; or |
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| 68 | 68 | | (C) a vehicle from which tobacco products are sold. |
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| 69 | 69 | | (14) "Retailer" means a person who engages in the practice of |
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| 70 | 70 | | selling tobacco products to consumers and includes the owner of a |
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| 71 | 71 | | coin-operated vending machine. |
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| 72 | 72 | | (15) "Tobacco product" means: |
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| 73 | 73 | | (A) a cigar; |
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| 74 | 74 | | (B) smoking tobacco, including granulated, plug-cut, |
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| 75 | 75 | | crimp-cut, ready-rubbed, and any form of tobacco suitable for |
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| 76 | 76 | | smoking in a pipe or as a cigarette; |
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| 77 | 77 | | (C) chewing tobacco, including Cavendish, Twist, plug, |
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| 78 | 78 | | scrap, and any kind of tobacco suitable for chewing; |
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| 79 | 79 | | (D) snuff or other preparations of pulverized tobacco; or |
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| 80 | 80 | | (E) an article or product that is made of tobacco or a |
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| 81 | 81 | | tobacco substitute and that is not a cigarette. |
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| 82 | 82 | | (16) "Wholesaler" means a person, including a manufacturer's |
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| 83 | 83 | | representative, who sells or distributes tobacco products in this |
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| 84 | 84 | | state for resale but who is not a distributor. |
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| 85 | 85 | | SECTION 2. This Act takes effect September 1, 2009. |
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