Texas 2015 - 84th Regular

Texas Senate Bill SB1371 Compare Versions

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1	1	84R2521 GRM-D
2	2	By: Lucio S.B. No. 1371
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to imposing a tax on certain sweetened beverages and
8	8	ingredients used to make certain sweetened beverages; providing a
9	9	penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
12	12	adding Chapter 164 to read as follows:
13	13	CHAPTER 164. TAX ON SWEETENED BEVERAGES
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 164.001. DEFINITIONS. In this chapter:
16	16	(1) "Retailer" means a person, other than a
17	17	manufacturer, distributor, or wholesaler, who receives, stores,
18	18	mixes, compounds, or manufactures sweetened beverages and who sells
19	19	or otherwise distributes sweetened beverages in this state to the
20	20	ultimate consumer.
21	21	(2) "Sweetened beverage" means a carbonated or
22	22	non-carbonated nonalcoholic beverage that contains natural or
23	23	artificial sweeteners. The term does not include:
24	24	(A) a beverage that:
25	25	(i) is sweetened only by a sweetener that
26	26	does not add calories to the beverage;
27	27	(ii) is 100 percent vegetable or fruit
28	28	juice by volume;
29	29	(iii) contains more than one-half of one
30	30	percent alcohol per ounce; or
31	31	(iv) is intended by the manufacturer for
32	32	consumption by an infant and is commonly referred to as "infant
33	33	formula";
34	34	(B) milk or milk products that do not contain
35	35	sweeteners that add calories to the milk or milk products;
36	36	(C) non-carbonated water or water without any
37	37	additional substances except for minerals and flavoring agents that
38	38	do not add calories to the water; or
39	39	(D) coffee or tea that does not contain
40	40	sweeteners that add calories to the coffee or tea.
41	41	(3) "Sweetened beverage powder" means a solid mixture
42	42	of basic ingredients used to make, mix, or compound sweetened
43	43	beverages.
44	44	(4) "Sweetened beverage syrup" means a liquid mixture
45	45	of basic ingredients used to make, mix, or compound sweetened
46	46	beverages.
47	47	Sec. 164.002. RULES. The comptroller may adopt rules
48	48	necessary for the implementation of this chapter and the collection
49	49	of taxes imposed by this chapter.
50	50	SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
51	51	Sec. 164.051. TAX IMPOSED ON SWEETENED BEVERAGES. (a) A
52	52	tax is imposed on the sale to a retailer of a sweetened beverage in
53	53	this state.
54	54	(b) A tax is imposed on the importation into this state of a
55	55	sweetened beverage for sale in this state to the ultimate consumer.
56	56	(c) Except as provided by Subsection (d), the rate of the
57	57	tax imposed by this section is one cent for each ounce or fractional
58	58	part of an ounce of sweetened beverage.
59	59	(d) On January 1 of each year, the comptroller shall
60	60	increase the rate of the tax prescribed by Subsection (c) or in
61	61	effect the preceding year, whichever is greater, by a percentage
62	62	equal to the percentage increase in the most recent annual revised
63	63	Consumer Price Index for All Urban Consumers, as published by the
64	64	federal Bureau of Labor Statistics of the United States Department
65	65	of Labor.
66	66	Sec. 164.052. TAX IMPOSED ON SWEETENED BEVERAGE POWDER.
67	67	(a) A tax is imposed on the sale to a retailer of sweetened beverage
68	68	powder in this state.
69	69	(b) A tax is imposed on the importation into this state of
70	70	sweetened beverage powder for sale in this state to the ultimate
71	71	consumer.
72	72	(c) Except as provided by Subsection (d), the rate of the
73	73	tax imposed by this section is one cent for the greater of:
74	74	(1) each ounce or fractional part of an ounce of
75	75	sweetened beverage that may be produced from the powder by
76	76	following the manufacturer's directions; or
77	77	(2) each ounce or fractional part of an ounce of
78	78	sweetened beverage actually produced by the retailer, as determined
79	79	by the comptroller.
80	80	(d) On January 1 of each year, the comptroller shall
81	81	increase the rate of the tax prescribed by Subsection (c) or in
82	82	effect the preceding year, whichever is greater, by a percentage
83	83	equal to the percentage increase in the most recent annual revised
84	84	Consumer Price Index for All Urban Consumers, as published by the
85	85	federal Bureau of Labor Statistics of the United States Department
86	86	of Labor.
87	87	Sec. 164.053. TAX IMPOSED ON SWEETENED BEVERAGE SYRUP. (a)
88	88	A tax is imposed on the sale to a retailer of sweetened beverage
89	89	syrup in this state.
90	90	(b) A tax is imposed on the importation into this state of
91	91	sweetened beverage syrup for sale in this state to the ultimate
92	92	consumer.
93	93	(c) Except as provided by Subsection (d), the rate of the
94	94	tax imposed by this section is one cent for the greater of:
95	95	(1) each ounce or fractional part of an ounce of
96	96	sweetened beverage that may be produced from the syrup by following
97	97	the manufacturer's directions; or
98	98	(2) each ounce or fractional part of an ounce of
99	99	sweetened beverage actually produced by the retailer, as determined
100	100	by the comptroller.
101	101	(d) On January 1 of each year, the comptroller shall
102	102	increase the rate of the tax prescribed by Subsection (c) or in
103	103	effect the preceding year, whichever is greater, by a percentage
104	104	equal to the percentage increase in the most recent annual revised
105	105	Consumer Price Index for All Urban Consumers, as published by the
106	106	federal Bureau of Labor Statistics of the United States Department
107	107	of Labor.
108	108	Sec. 164.054. EXEMPTION FROM TAX. The tax imposed by this
109	109	chapter does not apply to:
110	110	(1) sweetened beverages that:
111	111	(A) the comptroller determines are unsalable; or
112	112	(B) this state is prohibited from taxing under
113	113	federal law; or
114	114	(2) a sale of sweetened beverages, sweetened beverage
115	115	powder, or sweetened beverage syrup that occurs after a sale that is
116	116	taxed under this chapter.
117	117	Sec. 164.055. IMPACT OF TAX. The ultimate consumer or user
118	118	in this state bears the impact of the tax imposed by this chapter.
119	119	If another person pays the tax, the amount of the tax is added to the
120	120	price to the ultimate consumer or user.
121	121	Sec. 164.056. PAYMENT OF TAX. (a) The manufacturer,
122	122	distributor, wholesaler, or other person selling sweetened
123	123	beverages, sweetened beverage syrup, or sweetened beverage powder
124	124	in this state to a retailer or importing sweetened beverages,
125	125	sweetened beverage syrup, or sweetened beverage powder for sale in
126	126	this state to the ultimate consumer shall pay the tax imposed by
127	127	this chapter.
128	128	(b) On or before the 25th day of each month, the person
129	129	responsible for paying the tax shall send to the comptroller the
130	130	amount of tax due under this chapter for the preceding month.
131	131	Sec. 164.057. REPORTS. On or before the 25th day of each
132	132	month, the person responsible for paying the tax under this chapter
133	133	shall file with the comptroller a report stating:
134	134	(1) the volume of sweetened beverages, sweetened
135	135	beverage powder, and sweetened beverage syrup sold in this state to
136	136	retailers;
137	137	(2) the volume of sweetened beverages, sweetened
138	138	beverage powder, and sweetened beverage syrup imported into this
139	139	state for sale in this state to the ultimate consumer; and
140	140	(3) any other information required by the comptroller.
141	141	Sec. 164.058. RECORDS. (a) The person responsible for
142	142	paying the tax under this chapter shall keep a complete record of:
143	143	(1) the volume of sweetened beverages, sweetened
144	144	beverage powder, and sweetened beverage syrup sold in this state to
145	145	retailers;
146	146	(2) the volume of sweetened beverages, sweetened
147	147	beverage powder, and sweetened beverage syrup imported into this
148	148	state for sale in this state to the ultimate consumer; and
149	149	(3) any other information required by the comptroller.
150	150	(b) A record required by this section must be kept or
151	151	maintained for at least two years after the date the record is made.
152	152	SUBCHAPTER C. SALES PERMITS
153	153	Sec. 164.101. SALES PERMITS. (a) The comptroller shall
154	154	issue to an applicant who qualifies under Section 164.102 a
155	155	separate permit for each place of business in this state.
156	156	(b) The holder of a permit shall display it conspicuously in
157	157	the place of business to which it applies.
158	158	(c) A permit is valid only for the person and the place of
159	159	business to which it applies and is non-assignable.
160	160	(d) A permit issued under this chapter must be renewed
161	161	annually.
162	162	Sec. 164.102. APPLICATION FOR PERMIT. (a) A person
163	163	desiring to sell to a retailer, or import for sale in this state to
164	164	the ultimate consumer, sweetened beverages, sweetened beverage
165	165	powder, or sweetened beverage syrup shall file with the comptroller
166	166	an application for a permit for each place of business.
167	167	(b) The application must:
168	168	(1) be on a form prescribed by the comptroller;
169	169	(2) state the name under which the applicant transacts
170	170	or intends to transact business;
171	171	(3) give the address of the place of business to which
172	172	the permit is to apply;
173	173	(4) contain any other information required by the
174	174	comptroller; and
175	175	(5) be signed by the applicant or a person authorized
176	176	to act on behalf of the applicant.
177	177	SUBCHAPTER D. PENALTIES
178	178	Sec. 164.151. INTEREST ON DELINQUENT TAX. A tax imposed by
179	179	this chapter that is delinquent draws interest as provided by
180	180	Section 111.060.
181	181	Sec. 164.152. PENALTY. (a) A person who is responsible for
182	182	paying the tax imposed by this chapter and who fails to file a
183	183	report as required by this chapter or does not pay the tax when it is
184	184	due forfeits to the state a penalty of 25 percent of the amount of
185	185	the delinquent tax.
186	186	(b) The minimum penalty under this section is $1.
187	187	SUBCHAPTER E. DISPOSITION OF REVENUE
188	188	Sec. 164.201. DISPOSITION OF REVENUE. The revenue from the
189	189	tax imposed by this chapter shall be deposited to the credit of the
190	190	general revenue fund.
191	191	SECTION 2. Not later than December 1, 2015, the comptroller
192	192	of public accounts shall adopt rules necessary for the
193	193	implementation and administration of Chapter 164, Tax Code, as
194	194	added by this Act.
195	195	SECTION 3. Chapter 164, Tax Code, as added by this Act,
196	196	applies to a sweetened beverage, sweetened beverage powder, or
197	197	sweetened beverage syrup sold in this state or imported into this
198	198	state on or after January 1, 2016. A sweetened beverage, sweetened
199	199	beverage powder, or sweetened beverage syrup sold or imported
200	200	before January 1, 2016, is governed by the law in effect when the
201	201	sweetened beverage, sweetened beverage powder, or sweetened
202	202	beverage syrup was sold or imported, and that law is continued in
203	203	effect for that purpose.
204	204	SECTION 4. (a) Except as provided by Subsection (b) of this
205	205	section, this Act takes effect January 1, 2016.
206	206	(b) Section 2 of this Act takes effect September 1, 2015.