85R11734 GRM-D
By: Uresti H.B. No. 3079
A BILL TO BE ENTITLED
AN ACT
relating to imposing a tax on animal-tested cosmetics; 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 166 to read as follows:
CHAPTER 166. TAX ON ANIMAL-TESTED COSMETICS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 166.0001. DEFINITIONS. In this chapter:
(1) "Animal-tested cosmetic" means a cosmetic that has
been tested by internal or external application to or exposure to
the skin, eyes, or other body part of a live nonhuman vertebrate for
purposes of evaluating the safety or efficacy of the cosmetic.
(2) "Cosmetic" has the meaning assigned by Section 321
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Section 301
et seq.).
(3) "Retailer" means a person, other than a
manufacturer, distributor, or wholesaler, who receives, stores,
mixes, compounds, or manufactures animal-tested cosmetics and who
sells or otherwise distributes animal-tested cosmetics in this
state to the ultimate consumer.
Sec. 166.0002. RULES. The comptroller may adopt rules
necessary for the implementation of this chapter and the collection
of taxes imposed by this chapter, including the identification of
animal-tested cosmetics.
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 166.0051. TAX IMPOSED ON ANIMAL-TESTED COSMETICS. (a)
A tax is imposed on the sale by a retailer of an animal-tested
cosmetic in this state.
(b) The rate of the tax imposed by this section is 2.25
percent of the sales price of an animal-tested cosmetic.
Sec. 166.0052. PAYMENT OF TAX. (a) The retailer or other
person selling animal-tested cosmetics 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. 166.0053. 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 amount of animal-tested cosmetics sold in this
state by the retailer; and
(2) any other information required by the comptroller.
Sec. 166.0054. RECORDS. (a) The person responsible for
paying the tax under this chapter shall keep a complete record of:
(1) the amount of animal-tested cosmetics sold in this
state by the retailer; and
(2) 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. 166.0101. SALES PERMITS. (a) The comptroller shall
issue to an applicant who qualifies under Section 166.0102 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 not assignable.
(d) A permit issued under this chapter must be renewed
annually.
Sec. 166.0102. APPLICATION FOR PERMIT. (a) A person
desiring to sell animal-tested cosmetics to the ultimate consumer
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. 166.0151. INTEREST ON DELINQUENT TAX. A tax imposed by
this chapter that is delinquent draws interest as provided by
Section 111.060.
Sec. 166.0152. 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. 166.0201. 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, 2017, the comptroller
of public accounts shall adopt rules necessary for the
implementation and administration of Chapter 166, Tax Code, as
added by this Act.
SECTION 3. Chapter 166, Tax Code, as added by this Act,
applies to an animal-tested cosmetic sold in this state on or after
January 1, 2018. An animal-tested cosmetic sold before January 1,
2018, is governed by the law in effect when the animal-tested
cosmetic was sold, 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, 2018.
(b) Section 2 of this Act takes effect September 1, 2017.