84R2521 GRM-D
By: Lucio S.B. No. 1371
A BILL TO BE ENTITLED
AN ACT
relating to imposing a tax on certain sweetened beverages and
ingredients used to make certain sweetened beverages; providing a
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 164 to read as follows:
CHAPTER 164. TAX ON SWEETENED BEVERAGES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 164.001. 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 in this state 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; or
(iv) is intended by the manufacturer for
consumption by an infant and is commonly referred to as "infant
formula";
(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.
Sec. 164.002. RULES. The comptroller may adopt rules
necessary for the implementation of this chapter and the collection
of taxes imposed by this chapter.
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 164.051. TAX IMPOSED ON SWEETENED BEVERAGES. (a) A
tax is imposed on the sale to a retailer of a sweetened beverage in
this state.
(b) A tax is imposed on the importation into this state of a
sweetened beverage for sale in this state 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 sweetened beverage.
(d) On January 1 of each year, the comptroller shall
increase the rate of the tax prescribed by Subsection (c) or in
effect the preceding year, whichever is greater, 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. 164.052. TAX IMPOSED ON SWEETENED BEVERAGE POWDER.
(a) A tax is imposed on the sale to a retailer of sweetened beverage
powder in this state.
(b) A tax is imposed on the importation into this state of
sweetened beverage powder for sale in this state to the ultimate
consumer.
(c) Except as provided by Subsection (d), the rate of the
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) or in
effect the preceding year, whichever is greater, 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. 164.053. 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 in this state to the ultimate
consumer.
(c) Except as provided by Subsection (d), the rate of the
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) or in
effect the preceding year, whichever is greater, 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. 164.054. 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. 164.055. 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. 164.056. 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. 164.057. 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. 164.058. 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.
SUBCHAPTER C. SALES PERMITS
Sec. 164.101. SALES PERMITS. (a) The comptroller shall
issue to an applicant who qualifies under Section 164.102 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. 164.102. APPLICATION FOR PERMIT. (a) A person
desiring to sell to a retailer, or import for sale in this state to
the ultimate consumer, 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.
SUBCHAPTER D. PENALTIES
Sec. 164.151. INTEREST ON DELINQUENT TAX. A tax imposed by
this chapter that is delinquent draws interest as provided by
Section 111.060.
Sec. 164.152. 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 25 percent of the amount of
the delinquent tax.
(b) The minimum penalty under this section is $1.
SUBCHAPTER E. DISPOSITION OF REVENUE
Sec. 164.201. DISPOSITION OF REVENUE. The revenue from the
tax imposed by this chapter shall be deposited to the credit of the
general revenue fund.
SECTION 2. Not later than December 1, 2015, the comptroller
of public accounts shall adopt rules necessary for the
implementation and administration of Chapter 164, Tax Code, as
added by this Act.
SECTION 3. Chapter 164, Tax Code, as added by this Act,
applies to a sweetened beverage, sweetened beverage powder, or
sweetened beverage syrup sold in this state or imported into this
state on or after January 1, 2016. A sweetened beverage, sweetened
beverage powder, or sweetened beverage syrup sold or imported
before January 1, 2016, 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 4. (a) Except as provided by Subsection (b) of this
section, this Act takes effect January 1, 2016.
(b) Section 2 of this Act takes effect September 1, 2015.