| 1 | 1 | | 84R7781 GRM-F |
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| 2 | 2 | | By: Murphy, King of Taylor H.B. No. 2113 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the taxation of fireworks. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 151.801, Tax Code, is amended by |
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| 10 | 10 | | amending Subsections (a) and (d) and adding Subsection (c-2) to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (a) Except for the amounts allocated under Subsections (b), |
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| 13 | 13 | | [and] (c), and (c-2), all proceeds from the collection of the taxes |
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| 14 | 14 | | imposed by this chapter shall be deposited to the credit of the |
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| 15 | 15 | | general revenue fund. |
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| 16 | 16 | | (c-2) An amount equal to the revenue derived from the |
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| 17 | 17 | | collection of taxes at the rate of two percent on each sale at |
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| 18 | 18 | | retail of fireworks shall be deposited to the credit of the rural |
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| 19 | 19 | | volunteer fire department insurance fund established under Section |
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| 20 | 20 | | 614.075, Government Code. |
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| 21 | 21 | | (d) The comptroller shall determine the amount to be |
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| 22 | 22 | | deposited to the highway fund under Subsection (b) according to |
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| 23 | 23 | | available statistical data indicating the estimated average or |
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| 24 | 24 | | actual consumption or sales of lubricants used to propel motor |
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| 25 | 25 | | vehicles over the public roadways. The comptroller shall determine |
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| 26 | 26 | | the amounts to be deposited to the funds or accounts under |
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| 27 | 27 | | Subsection (c) according to available statistical data indicating |
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| 28 | 28 | | the estimated or actual total receipts in this state from taxable |
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| 29 | 29 | | sales of sporting goods. The comptroller shall determine the amount |
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| 30 | 30 | | to be deposited to the fund under Subsection (c-2) according to |
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| 31 | 31 | | available statistical data indicating the estimated or actual total |
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| 32 | 32 | | receipts in this state from taxes imposed on sales at retail of |
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| 33 | 33 | | fireworks. If satisfactory data are not available, the comptroller |
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| 34 | 34 | | may require taxpayers who make taxable sales or uses of those |
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| 35 | 35 | | lubricants, [or] of sporting goods, or of fireworks to report to the |
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| 36 | 36 | | comptroller as necessary to make the allocation required by |
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| 37 | 37 | | Subsection (b), [or] (c), or (c-2). |
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| 38 | 38 | | SECTION 2. Section 151.801(e), Tax Code, is amended by |
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| 39 | 39 | | adding Subdivision (3) to read as follows: |
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| 40 | 40 | | (3) "Fireworks" means any composition or device that |
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| 41 | 41 | | is designed to produce a visible or audible effect by combustion, |
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| 42 | 42 | | explosion, deflagration, or detonation that is classified as |
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| 43 | 43 | | Division 1.4G explosives by the United States Department of |
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| 44 | 44 | | Transportation in 49 C.F.R. Part 173 as of September 1, 1999. The |
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| 45 | 45 | | term does not include: |
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| 46 | 46 | | (A) a toy pistol, toy cane, toy gun, or other |
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| 47 | 47 | | device that uses a paper or plastic cap; |
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| 48 | 48 | | (B) a model rocket or model rocket motor |
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| 49 | 49 | | designed, sold, and used for the purpose of propelling a |
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| 50 | 50 | | recoverable aero model; |
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| 51 | 51 | | (C) a propelling or expelling charge consisting |
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| 52 | 52 | | of a mixture of sulfur, charcoal, and potassium nitrate; |
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| 53 | 53 | | (D) a novelty or trick noisemaker; |
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| 54 | 54 | | (E) a pyrotechnic signaling device or distress |
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| 55 | 55 | | signal for marine, aviation, or highway use in an emergency |
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| 56 | 56 | | situation; |
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| 57 | 57 | | (F) a fusee or railway torpedo for use by a |
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| 58 | 58 | | railroad; |
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| 59 | 59 | | (G) a blank cartridge for use in a radio, |
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| 60 | 60 | | television, film, or theater production, for signal or ceremonial |
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| 61 | 61 | | purposes in athletic events, or for industrial purposes; or |
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| 62 | 62 | | (H) a pyrotechnic device for use by a military |
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| 63 | 63 | | organization. |
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| 64 | 64 | | SECTION 3. Section 614.072(h), Government Code, is amended |
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| 65 | 65 | | to read as follows: |
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| 66 | 66 | | (h) Administration costs associated with the program during |
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| 67 | 67 | | a state fiscal year may not exceed seven percent of the total |
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| 68 | 68 | | deposited to the credit of the fund as required by Section |
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| 69 | 69 | | 151.801(c-2) [revenue collected from the tax imposed under Chapter |
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| 70 | 70 | | 161], Tax Code, during the previous fiscal year. |
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| 71 | 71 | | SECTION 4. Section 614.075(a), Government Code, is amended |
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| 72 | 72 | | to read as follows: |
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| 73 | 73 | | (a) The rural volunteer fire department insurance fund is an |
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| 74 | 74 | | account in the general revenue fund and is composed of money |
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| 75 | 75 | | deposited as required by Section 151.801(c-2) [collected under |
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| 76 | 76 | | Chapter 161], Tax Code, and contributions to the fund from any other |
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| 77 | 77 | | source. |
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| 78 | 78 | | SECTION 5. Chapter 161, Tax Code, is repealed. |
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| 79 | 79 | | SECTION 6. The changes in law made by this Act do not affect |
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| 80 | 80 | | tax liability accruing before the effective date of this Act. That |
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| 81 | 81 | | liability continues in effect as if this Act had not been enacted, |
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| 82 | 82 | | and the former law is continued in effect for the collection of |
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| 83 | 83 | | taxes due and for civil and criminal enforcement of the liability |
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| 84 | 84 | | for those taxes. |
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| 85 | 85 | | SECTION 7. This Act takes effect September 1, 2015. |
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