82R3516 CJC-D
By: Farias H.B. No. 2214
A BILL TO BE ENTITLED
AN ACT
relating to the imposition of a tax on certain sweetened beverages
and ingredients used to make certain sweetened beverages and to the
use of the revenue for the promotion of children's health programs;
providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 163 to read as follows:
CHAPTER 163. TAX ON SWEETENED BEVERAGES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 163.001. DEFINITIONS. In this chapter:
(1) "Retailer" means a person, other than a
manufacturer, distributor, or wholesaler, who receives, stores,
mixes, compounds, or manufactures sweetened beverages and who sells
or otherwise distributes sweetened beverages to the ultimate
consumer.
(2) "Sweetened beverage" means a carbonated or
non-carbonated nonalcoholic beverage that contains natural or
artificial sweeteners. The term does not include:
(A) a beverage that:
(i) is sweetened only by a sweetener that
does not add calories to the beverage;
(ii) is 100 percent vegetable or fruit
juice by volume;
(iii) contains more than one-half of one
percent alcohol per ounce;
(iv) is commonly referred to as a "sports
drink" or "electrolyte replacement drink" and contains not more
than 110 milligrams of potassium and 200 milligrams of sodium per
eight-ounce serving;
(v) is intended by the manufacturer for
consumption by an infant and is commonly referred to as "infant
formula"; or
(vi) is intended by the manufacturer to be
sold and used by the ultimate consumer in domestically mixing soft
drinks;
(B) milk or milk products that do not contain
sweeteners that add calories to the milk or milk products;
(C) non-carbonated water or water without any
additional substances except for minerals and flavoring agents that
do not add calories to the water; or
(D) coffee or tea that does not contain
sweeteners that add calories to the coffee or tea.
(3) "Sweetened beverage powder" means a solid mixture
of basic ingredients used to make, mix, or compound sweetened
beverages.
(4) "Sweetened beverage syrup" means a liquid mixture
of basic ingredients used to make, mix, or compound sweetened
beverages.
[Sections 163.002-163.050 reserved for expansion]
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 163.051. TAX IMPOSED ON SWEETENED BEVERAGES. (a) A
tax is imposed on the sale to a retailer of a sweetened beverage.
(b) A tax is imposed on the importation into this state of a
sweetened beverage for sale to the ultimate consumer.
(c) Except as provided by Subsection (d), the rate of the
tax imposed by this section is one cent for each ounce or fractional
part of an ounce of a sweetened beverage.
(d) On January 1 of each year, the comptroller shall
increase the rate of the tax prescribed by Subsection (c) by a
percentage equal to the percentage increase in the most recent
annual revised Consumer Price Index for All Urban Consumers, as
published by the federal Bureau of Labor Statistics of the United
States Department of Labor.
Sec. 163.052. TAX IMPOSED ON SWEETENED BEVERAGE POWDER.
(a) A tax is imposed on the sale to a retailer of sweetened beverage
powder.
(b) A tax is imposed on the importation into this state of
sweetened beverage powder for sale to the ultimate consumer.
(c) Except as provided by Subsection (d), the rate of tax
imposed by this section is one cent for the greater of:
(1) each ounce or fractional part of an ounce of
sweetened beverage that may be produced from the powder by
following the manufacturer's directions; or
(2) each ounce or fractional part of an ounce of
sweetened beverage actually produced by the retailer, as determined
by the comptroller.
(d) On January 1 of each year, the comptroller shall
increase the rate of the tax prescribed by Subsection (c) by a
percentage equal to the percentage increase in the most recent
annual revised Consumer Price Index for All Urban Consumers, as
published by the federal Bureau of Labor Statistics of the United
States Department of Labor.
Sec. 163.053. TAX IMPOSED ON SWEETENED BEVERAGE SYRUP. (a)
A tax is imposed on the sale to a retailer of sweetened beverage
syrup in this state.
(b) A tax is imposed on the importation into this state of
sweetened beverage syrup for sale to the ultimate consumer.
(c) Except as provided by Subsection (d), the rate of tax
imposed by this section is one cent for the greater of:
(1) each ounce or fractional part of an ounce of
sweetened beverage that may be produced from the syrup by following
the manufacturer's directions; or
(2) each ounce or fractional part of an ounce of
sweetened beverage actually produced by the retailer, as determined
by the comptroller.
(d) On January 1 of each year, the comptroller shall
increase the rate of the tax prescribed by Subsection (c) by a
percentage equal to the percentage increase in the most recent
annual revised Consumer Price Index for All Urban Consumers, as
published by the federal Bureau of Labor Statistics of the United
States Department of Labor.
Sec. 163.054. EXEMPTION FROM TAX. The tax imposed by this
chapter does not apply to:
(1) sweetened beverages that:
(A) the comptroller determines are unsalable; or
(B) this state is prohibited from taxing under
federal law; or
(2) a sale of sweetened beverages, sweetened beverage
powder, or sweetened beverage syrup that occurs after a sale that is
taxed under this chapter.
Sec. 163.055. IMPACT OF TAX. The ultimate consumer or user
in this state bears the impact of the tax imposed by this chapter.
If another person pays the tax, the amount of the tax is added to the
price to the ultimate consumer or user.
Sec. 163.056. PAYMENT OF TAX. (a) The manufacturer,
distributor, wholesaler, or other person selling sweetened
beverages, sweetened beverage syrup, or sweetened beverage powder
in this state to a retailer or importing sweetened beverages,
sweetened beverage syrup, or sweetened beverage powder for sale in
this state to the ultimate consumer shall pay the tax imposed by
this chapter.
(b) On or before the 25th day of each month, the person
responsible for paying the tax shall send to the comptroller the
amount of tax due under this chapter for the preceding month.
Sec. 163.057. REPORTS. On or before the 25th day of each
month, the person responsible for paying the tax under this chapter
shall file with the comptroller a report stating:
(1) the volume of sweetened beverages, sweetened
beverage powder, and sweetened beverage syrup sold in this state to
retailers;
(2) the volume of sweetened beverages, sweetened
beverage powder, and sweetened beverage syrup imported into this
state for sale in this state to the ultimate consumer; and
(3) any other information required by the comptroller.
Sec. 163.058. RECORDS. (a) The person responsible for
paying the tax under this chapter shall keep a complete record of:
(1) the volume of sweetened beverages, sweetened
beverage powder, and sweetened beverage syrup sold in this state to
retailers;
(2) the volume of sweetened beverages, sweetened
beverage powder, and sweetened beverage syrup imported into this
state for sale in this state to the ultimate consumer; and
(3) any other information required by the comptroller.
(b) A record required by this section must be kept or
maintained for at least two years after the date the record is made.
[Sections 163.059-163.100 reserved for expansion]
SUBCHAPTER C. SALES PERMITS
Sec. 163.101. SALES PERMITS. (a) The comptroller shall
issue to an applicant who qualifies under Section 163.102 a
separate permit for each place of business in this state.
(b) The holder of a permit shall display it conspicuously in
the place of business to which it applies.
(c) A permit is valid only for the person and the place of
business to which it applies and is non-assignable.
(d) A permit issued under this chapter must be renewed
annually.
Sec. 163.102. APPLICATION FOR PERMIT. (a) A person
desiring to sell to a retailer in this state, or import for sale to
the ultimate consumer in this state, sweetened beverages, sweetened
beverage powder, or sweetened beverage syrup shall file with the
comptroller an application for a permit for each place of business.
(b) The application must:
(1) be on a form prescribed by the comptroller;
(2) state the name under which the applicant transacts
or intends to transact business;
(3) give the address of the place of business to which
the permit is to apply;
(4) contain any other information required by the
comptroller; and
(5) be signed by the applicant or a person authorized
to act on behalf of the applicant.
[Sections 163.103-163.150 reserved for expansion]
SUBCHAPTER D. PENALTIES AND OFFENSES
Sec. 163.151. INTEREST ON DELINQUENT TAX. A tax imposed by
this chapter that is delinquent draws interest as provided by
Section 111.060.
Sec. 163.152. PENALTY. (a) A person who is responsible for
paying the tax imposed by this chapter and who fails to file a
report as required by this chapter or does not pay the tax when it is
due forfeits to the state a penalty of 50 percent of the amount of
the delinquent tax.
(b) The minimum penalty under this section is $1.
Sec. 163.153. CRIMINAL PENALTY. (a) A person who violates
this chapter commits an offense.
(b) An offense under this section is a Class C misdemeanor.
[Sections 163.154-163.200 reserved for expansion]
SUBCHAPTER E. CHILDREN'S HEALTH PROMOTION ACCOUNT
Sec. 163.201. ACCOUNT. (a) The children's health
promotion account is a separate account in the general revenue
fund.
(b) The account consists of:
(1) the revenue from the tax imposed under this
chapter;
(2) any gifts or grants received for the purposes of
this subchapter; and
(3) interest earned on money in the account.
(c) The account is exempt from the application of Section
403.095, Government Code.
Sec. 163.202. USE OF ACCOUNT. (a) Money in the account may
be appropriated only as follows:
(1) 80 percent to the Texas Education Agency for the
purposes authorized by Subsection (b); and
(2) 20 percent to the Department of State Health
Services for the purposes authorized by Subsection (c).
(b) Money appropriated to the Texas Education Agency under
this section may be used only to:
(1) implement and maintain coordinated school health
programs, which may include enhancements to the basic school health
program; or
(2) improve the school health environment through
activities, which may include:
(A) improving or building recreational
facilities used for physical education and related activities at
public elementary and secondary schools;
(B) providing continuing education training for
physical education teachers;
(C) hiring qualified physical education
teachers;
(D) implementing Safe Routes to Schools
programs;
(E) improving the quality and nutrition of foods
served at public elementary and secondary schools;
(F) ensuring, at no cost, access to clean
drinking water throughout the school day; and
(G) incorporating nutrition and health into the
standard educational curriculum.
(c) Money appropriated to the Department of State Health
Services under this section may be used only to fund training and
technical assistance for the implementation and maintenance of
coordinated school health programs in public elementary and
secondary schools.
(d) Money appropriated under this section may be used only
to supplement and not to supplant current federal, state, and local
funding for children's health programs in public elementary and
secondary schools.
SECTION 2. Chapter 163, Tax Code, as added by this Act,
applies to a sweetened beverage, sweetened beverage powder, or
sweetened beverage syrup sold or imported on or after the effective
date of this Act. A sweetened beverage, sweetened beverage powder,
or sweetened beverage syrup sold or imported before that date is
governed by the law in effect when the sweetened beverage,
sweetened beverage powder, or sweetened beverage syrup was sold or
imported, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.