Texas 2019 - 86th Regular

Texas House Bill HB1525 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1525
	1	+	By: Burrows (Senate Sponsor - Nelson) H.B. No. 1525
	2	+	(In the Senate - Received from the House April 11, 2019;
	3	+	April 15, 2019, read first time and referred to Committee on
	4	+	Finance; April 25, 2019, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 14, Nays 0;
	6	+	April 25, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 1525 By: Nelson
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the administration and collection of sales and use
6	14		taxes applicable to sales involving marketplace providers.
7	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	16		SECTION 1. Section 151.008(b), Tax Code, is amended to read
9	17		as follows:
10	18		(b) "Seller" and "retailer" include:
11	19		(1) a person in the business of making sales at auction
12	20		of tangible personal property owned by the person or by another;
13	21		(2) a person who makes more than two sales of taxable
14	22		items during a 12-month period, including sales made in the
15	23		capacity of an assignee for the benefit of creditors or receiver or
16	24		trustee in bankruptcy;
17	25		(3) a person regarded by the comptroller as a seller or
18	26		retailer under Section 151.024;
19	27		(4) a hotel, motel, or owner or lessor of an office or
20	28		residential building or development that contracts and pays for
21	29		telecommunications services for resale to guests or tenants;
22	30		(5) a person who engages in regular or systematic
23	31		solicitation of sales of taxable items in this state by the
24	32		distribution of catalogs, periodicals, advertising flyers, or
25	33		other advertising, by means of print, radio, or television media,
26	34		or by mail, telegraphy, telephone, computer data base, cable,
27	35		optic, microwave, or other communication system for the purpose of
28	36		effecting sales of taxable items; [and]
29	37		(6) a person who, under an agreement with another
30	38		person, is:
31	39		(A) entrusted with possession of tangible
32	40		personal property with respect to which the other person has title
33	41		or another ownership interest; and
34	42		(B) authorized to sell, lease, or rent the
35	43		property without additional action by the person having title to or
36	44		another ownership interest in the property; and
37	45		(7) a person who is a marketplace provider under
38	46		Section 151.0242.
39	47		SECTION 2. Subchapter B, Chapter 151, Tax Code, is amended
40	48		by adding Section 151.0242 to read as follows:
41	49		Sec. 151.0242. MARKETPLACE PROVIDERS AND MARKETPLACE
42	50		SELLERS. (a) In this section:
43	51		(1) "Marketplace" means a physical or electronic
44	52		medium through which persons other than the owner or operator of the
45	53		medium make sales of taxable items. The term includes a store,
46	54		Internet website, software application, or catalog.
47	55		(2) "Marketplace provider" means a person who owns or
48	56		operates a marketplace and directly or indirectly processes sales
49	57		or payments for marketplace sellers.
50	58		(3) "Marketplace seller" means a seller, other than
51	59		the marketplace provider, who makes a sale of a taxable item through
52	60		a marketplace.
53	61		(b) Except as otherwise provided by this section, a
54	62		marketplace provider has the rights and duties of a seller or
55	63		retailer under this chapter with respect to sales made through the
56	64		marketplace.
57	65		(c) A marketplace provider shall:
58	66		(1) certify to each marketplace seller that the
59	67		marketplace provider assumes the rights and duties of a seller or
60	68		retailer under this chapter with respect to sales made by the
61	69		marketplace seller through the marketplace;
62	70		(2) collect in the manner provided by Subchapters C
63	71		and D the taxes imposed by this chapter on sales of taxable items
64	72		made through the marketplace; and
65	73		(3) report and remit under Subchapter I the taxes
66	74		imposed by this chapter on all sales made through the marketplace.
67	75		(d) A marketplace seller who in good faith accepts a
68	76		marketplace provider's certification under Subsection (c)(1) shall
69	77		exclude sales made through the marketplace from the marketplace
70	78		seller's report under Subchapter I, notwithstanding Section
71	79		151.406.
72	80		(e) A marketplace seller shall retain records for all
73	81		marketplace sales as required by Section 151.025.
74	82		(f) A marketplace seller shall furnish to the marketplace
75	83		provider information that is required to correctly collect and
76	84		remit taxes imposed by this chapter. The information may include a
77	85		certification of taxability that an item being sold is a taxable
78	86		item, is not a taxable item, or is exempt from taxation.
79	87		(g) Except as provided by Subsection (h), a marketplace
80	88		provider is not liable for failure to collect and remit the correct
81	89		amount of taxes imposed by this chapter if the marketplace provider
82	90		demonstrates that the failure resulted from the marketplace
83	91		provider's good faith reliance on incorrect or insufficient
84	92		information provided by the marketplace seller. The marketplace
85	93		seller is liable for a deficiency resulting from incorrect or
86	94		insufficient information provided by the marketplace seller.
87	95		(h) A marketplace provider and marketplace seller that are
88	96		affiliates or associates, as defined by Section 1.002, Business
89	97		Organizations Code, are jointly and severally liable for a
90	98		deficiency resulting from a sale made by the marketplace seller
91	99		through the marketplace.
92	100		(i) This section does not affect the tax liability of a
93	101		purchaser under Section 151.052 or 151.102.
94	102		(j) A court may not certify an action brought against a
95	103		marketplace provider concerning this section as a class action.
96	104		(k) The comptroller may adopt rules and forms to implement
97	105		this section and by rule except certain marketplace providers from
98	106		some or all of the requirements of this section.
99	107		SECTION 3. Section 321.203, Tax Code, is amended by adding
100	108		Subsection (e-1) to read as follows:
101	109		(e-1) Notwithstanding any other provision of this section,
102	110		a sale of a taxable item made by a marketplace seller through a
103	111		marketplace as provided by Section 151.0242 is consummated at the
104	112		location in this state to which the item is shipped or delivered or
105	113		at which possession is taken by the purchaser.
106	114		SECTION 4. Section 323.203, Tax Code, is amended by adding
107	115		Subsection (e-1) to read as follows:
108	116		(e-1) Notwithstanding any other provision of this section,
109	117		a sale of a taxable item made by a marketplace seller through a
110	118		marketplace as provided by Section 151.0242 is consummated at the
111	119		location in this state to which the item is shipped or delivered or
112	120		at which possession is taken by the purchaser.
113	121		SECTION 5. The changes in law made by this Act do not affect
114	122		tax liability accruing before the effective date of this Act. That
115	123		liability continues in effect as if this Act had not been enacted,
116	124		and the former law is continued in effect for the collection of
117	125		taxes due and for civil and criminal enforcement of the liability
118	126		for those taxes.
119	127		SECTION 6. This Act takes effect October 1, 2019.
120		-	______________________________ ______________________________
121		-	President of the Senate Speaker of the House
122		-	I certify that H.B. No. 1525 was passed by the House on April
123		-	11, 2019, by the following vote: Yeas 145, Nays 1, 2 present, not
124		-	voting; and that the House concurred in Senate amendments to H.B.
125		-	No. 1525 on May 10, 2019, by the following vote: Yeas 103, Nays 3,
126		-	1 present, not voting.
127		-	______________________________
128		-	Chief Clerk of the House
129		-	I certify that H.B. No. 1525 was passed by the Senate, with
130		-	amendments, on May 3, 2019, by the following vote: Yeas 31, Nays 0.
131		-	______________________________
132		-	Secretary of the Senate
133		-	APPROVED: __________________
134		-	Date
135		-	__________________
136		-	Governor
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