Texas 2019 - 86th Regular

Texas House Bill HB1144 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R5300 BEF-F
2	2	By: Thierry H.B. No. 1144
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to sales and use taxes on e-cigarette vapor products to
8	8	benefit the child health plan program; imposing taxes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
11	11	adding Chapter 164 to read as follows:
12	12	CHAPTER 164. TAX ON E-CIGARETTE VAPOR PRODUCTS
13	13	Sec. 164.0001. DEFINITIONS. In this chapter:
14	14	(1) "E-cigarette" has the meaning assigned by Section
15	15	161.081, Health and Safety Code.
16	16	(2) "Vapor product" means a consumable nicotine liquid
17	17	solution or other material containing nicotine suitable for use in
18	18	an e-cigarette.
19	19	Sec. 164.0002. E-CIGARETTE VAPOR PRODUCT SALES TAX. (a) A
20	20	tax is imposed on each sale of a vapor product in this state.
21	21	(b) The tax rate is five cents for each milliliter or
22	22	fractional part of a milliliter of vapor product sold.
23	23	(c) The tax imposed under this section is in addition to the
24	24	tax imposed under Subchapter C, Chapter 151. The tax imposed under
25	25	this section does not apply to a sale unless the tax imposed under
26	26	Subchapter C, Chapter 151, applies to the sale.
27	27	Sec. 164.0003. E-CIGARETTE VAPOR PRODUCT USE TAX. (a) A
28	28	tax is imposed on the storage, use, or other consumption in this
29	29	state of a vapor product purchased from a retailer for storage, use,
30	30	or other consumption in this state.
31	31	(b) The tax rate is five cents for each milliliter or
32	32	fractional part of a milliliter of vapor product stored, used, or
33	33	otherwise consumed in this state.
34	34	(c) The tax imposed under this section is in addition to the
35	35	tax imposed under Subchapter D, Chapter 151. The tax imposed under
36	36	this section does not apply to the storage, use, or other
37	37	consumption of a vapor product unless the tax imposed under
38	38	Subchapter D, Chapter 151, applies to the storage, use, or other
39	39	consumption.
40	40	Sec. 164.0004. APPLICATION OF OTHER PROVISIONS OF CODE.
41	41	(a) Except as provided by this chapter:
42	42	(1) the taxes imposed under this chapter are
43	43	administered, imposed, collected, and enforced in the same manner
44	44	as the taxes under Chapter 151 are administered, imposed,
45	45	collected, and enforced; and
46	46	(2) the provisions of Chapter 151 applicable to the
47	47	sales tax imposed under Subchapter C, Chapter 151, and the use tax
48	48	imposed under Subchapter D, Chapter 151, apply to the sales and use
49	49	taxes imposed under this chapter.
50	50	(b) A change in the law relating to the taxation of the sale
51	51	or use of a vapor product under Chapter 151 also applies to the
52	52	sales or use tax imposed under this chapter.
53	53	Sec. 164.0005. REPORTS. (a) A person required to file a
54	54	report under Section 151.403 who is also required to collect or pay
55	55	a tax under this chapter shall file with the comptroller a report
56	56	stating:
57	57	(1) for sales tax purposes, the volume of vapor
58	58	products sold by the seller during the reporting period;
59	59	(2) for use tax purposes, the volume of vapor products
60	60	sold by the retailer during the reporting period for storage, use,
61	61	or other consumption in this state;
62	62	(3) the volume of vapor products subject to the use tax
63	63	that were acquired during the reporting period for storage, use, or
64	64	other consumption in this state by a purchaser who did not pay the
65	65	tax to a retailer;
66	66	(4) the amount of the taxes due under this chapter for
67	67	the reporting period; and
68	68	(5) any other information required by the comptroller.
69	69	(b) The report required by this section for a reporting
70	70	period is due on the same date that the tax payment for the period is
71	71	due.
72	72	Sec. 164.0006. RECORDS. A person required to file a report
73	73	under Section 151.403 who is also required to collect or pay a tax
74	74	under this chapter shall keep a complete record of:
75	75	(1) the volume of vapor products sold in this state
76	76	during each reporting period;
77	77	(2) the volume of vapor products, including the
78	78	constituent parts of vapor products, purchased from every source
79	79	during each reporting period;
80	80	(3) all sales and use taxes, and any money represented
81	81	to be sales or use tax, collected during each reporting period; and
82	82	(4) any other information required by the comptroller.
83	83	Sec. 164.0007. DISPOSITION AND USE OF PROCEEDS. The
84	84	comptroller shall deposit the proceeds from taxes imposed under
85	85	this chapter in the general revenue fund. The proceeds may be
86	86	appropriated only to the Health and Human Services Commission for
87	87	the purpose of providing health benefits coverage under the child
88	88	health plan program established under Chapter 62, Health and Safety
89	89	Code.
90	90	SECTION 2. This Act takes effect September 1, 2019.