85R4870 BEF/GCB-F
By: Turner H.B. No. 1411
A BILL TO BE ENTITLED
AN ACT
relating to sales and use taxes on e-cigarette vapor products to
fund grants for local law enforcement mental health staff; imposing
taxes.
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 E-CIGARETTE VAPOR PRODUCTS
Sec. 164.001. DEFINITIONS. In this chapter:
(1) "E-cigarette" has the meaning assigned by Section
161.081, Health and Safety Code.
(2) "Vapor product" means a consumable nicotine liquid
solution or other material containing nicotine suitable for use in
an e-cigarette.
Sec. 164.002. E-CIGARETTE VAPOR PRODUCT SALES TAX. (a) A
tax is imposed on each sale of a vapor product in this state.
(b) The tax rate is five cents for each milliliter or
fractional part of a milliliter of vapor product sold.
(c) The tax imposed under this section is in addition to the
tax imposed under Subchapter C, Chapter 151. The tax imposed under
this section does not apply to a sale unless the tax imposed under
Subchapter C, Chapter 151, applies to the sale.
Sec. 164.003. E-CIGARETTE VAPOR PRODUCT USE TAX. (a) A tax
is imposed on the storage, use, or other consumption in this state
of a vapor product purchased from a retailer for storage, use, or
other consumption in this state.
(b) The tax rate is five cents for each milliliter or
fractional part of a milliliter of vapor product stored, used, or
otherwise consumed in this state.
(c) The tax imposed under this section is in addition to the
tax imposed under Subchapter D, Chapter 151. The tax imposed under
this section does not apply to the storage, use, or other
consumption of a vapor product unless the tax imposed under
Subchapter D, Chapter 151, applies to the storage, use, or other
consumption.
Sec. 164.004. APPLICATION OF OTHER PROVISIONS OF CODE. (a)
Except as provided by this chapter:
(1) the taxes imposed under this chapter are
administered, imposed, collected, and enforced in the same manner
as the taxes under Chapter 151 are administered, imposed,
collected, and enforced; and
(2) the provisions of Chapter 151 applicable to the
sales tax imposed under Subchapter C, Chapter 151, and the use tax
imposed under Subchapter D, Chapter 151, apply to the sales and use
taxes imposed under this chapter.
(b) A change in the law relating to the taxation of the sale
or use of a vapor product under Chapter 151 also applies to the
sales or use tax imposed under this chapter.
Sec. 164.005. REPORTS. (a) A person required to file a
report under Section 151.403 who is also required to collect or pay
a tax under this chapter shall file with the comptroller a report
stating:
(1) for sales tax purposes, the volume of vapor
products sold by the seller during the reporting period;
(2) for use tax purposes, the volume of vapor products
sold by the retailer during the reporting period for storage, use,
or other consumption in this state;
(3) the volume of vapor products subject to the use tax
that were acquired during the reporting period for storage, use, or
other consumption in this state by a purchaser who did not pay the
tax to a retailer;
(4) the amount of the taxes due under this chapter for
the reporting period; and
(5) any other information required by the comptroller.
(b) The report required by this section for a reporting
period is due on the same date that the tax payment for the period is
due.
Sec. 164.006. RECORDS. A person required to file a report
under Section 151.403 who is also required to collect or pay a tax
under this chapter shall keep a complete record of:
(1) the volume of vapor products sold in this state
during each reporting period;
(2) the volume of vapor products, including the
constituent parts of vapor products, purchased from every source
during each reporting period;
(3) all sales and use taxes, and any money represented
to be sales or use tax, collected during each reporting period; and
(4) any other information required by the comptroller.
Sec. 164.007. DISPOSITION OF REVENUE. The comptroller
shall deposit the revenue from taxes imposed under this chapter in
an account in the general revenue fund. The account is administered
by the Health and Human Services Commission. Money in the account
may be appropriated only to the commission for the purpose of making
grants under Section 164.008.
Sec. 164.008. GRANTS FOR LOCAL LAW ENFORCEMENT MENTAL
HEALTH STAFF. (a) In this section, "commission" means the Health
and Human Services Commission.
(b) Using money appropriated as provided by Section
164.007, the commission shall make grants to local law enforcement
agencies for the purpose of hiring staff to provide mental health
services related to the agencies' law enforcement functions.
(c) The commission shall request proposals for the award of
grants under this section. The commission shall evaluate the
proposals and award grants based on the proposed recipients'
quantifiable effectiveness and potentially positive impact on the
delivery of mental health services in the law enforcement context.
(d) A grant recipient may use grant money received under
this section only to pay for activities directly related to the
purpose of the grant program as described by Subsection (b).
(e) The commission shall establish procedures to administer
the grant program, including a procedure for the submission of a
proposal and a procedure to be used by the commission to evaluate a
proposal.
(f) The commission shall enter into a contract that includes
performance requirements with each grant recipient. The commission
shall monitor and enforce the terms of the contract. The contract
must authorize the commission to recoup grant money from a grant
recipient for failure of the grant recipient to comply with the
terms of the contract.
SECTION 2. This Act takes effect September 1, 2017.