H.B. No. 1525
AN ACT
relating to the administration and collection of sales and use
taxes applicable to sales involving marketplace providers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.008(b), Tax Code, is amended to read
as follows:
(b) "Seller" and "retailer" include:
(1) a person in the business of making sales at auction
of tangible personal property owned by the person or by another;
(2) a person who makes more than two sales of taxable
items during a 12-month period, including sales made in the
capacity of an assignee for the benefit of creditors or receiver or
trustee in bankruptcy;
(3) a person regarded by the comptroller as a seller or
retailer under Section 151.024;
(4) a hotel, motel, or owner or lessor of an office or
residential building or development that contracts and pays for
telecommunications services for resale to guests or tenants;
(5) a person who engages in regular or systematic
solicitation of sales of taxable items in this state by the
distribution of catalogs, periodicals, advertising flyers, or
other advertising, by means of print, radio, or television media,
or by mail, telegraphy, telephone, computer data base, cable,
optic, microwave, or other communication system for the purpose of
effecting sales of taxable items; [and]
(6) a person who, under an agreement with another
person, is:
(A) entrusted with possession of tangible
personal property with respect to which the other person has title
or another ownership interest; and
(B) authorized to sell, lease, or rent the
property without additional action by the person having title to or
another ownership interest in the property; and
(7) a person who is a marketplace provider under
Section 151.0242.
SECTION 2. Subchapter B, Chapter 151, Tax Code, is amended
by adding Section 151.0242 to read as follows:
Sec. 151.0242. MARKETPLACE PROVIDERS AND MARKETPLACE
SELLERS. (a) In this section:
(1) "Marketplace" means a physical or electronic
medium through which persons other than the owner or operator of the
medium make sales of taxable items. The term includes a store,
Internet website, software application, or catalog.
(2) "Marketplace provider" means a person who owns or
operates a marketplace and directly or indirectly processes sales
or payments for marketplace sellers.
(3) "Marketplace seller" means a seller, other than
the marketplace provider, who makes a sale of a taxable item through
a marketplace.
(b) Except as otherwise provided by this section, a
marketplace provider has the rights and duties of a seller or
retailer under this chapter with respect to sales made through the
marketplace.
(c) A marketplace provider shall:
(1) certify to each marketplace seller that the
marketplace provider assumes the rights and duties of a seller or
retailer under this chapter with respect to sales made by the
marketplace seller through the marketplace;
(2) collect in the manner provided by Subchapters C
and D the taxes imposed by this chapter on sales of taxable items
made through the marketplace; and
(3) report and remit under Subchapter I the taxes
imposed by this chapter on all sales made through the marketplace.
(d) A marketplace seller who in good faith accepts a
marketplace provider's certification under Subsection (c)(1) shall
exclude sales made through the marketplace from the marketplace
seller's report under Subchapter I, notwithstanding Section
151.406.
(e) A marketplace seller shall retain records for all
marketplace sales as required by Section 151.025.
(f) A marketplace seller shall furnish to the marketplace
provider information that is required to correctly collect and
remit taxes imposed by this chapter. The information may include a
certification of taxability that an item being sold is a taxable
item, is not a taxable item, or is exempt from taxation.
(g) Except as provided by Subsection (h), a marketplace
provider is not liable for failure to collect and remit the correct
amount of taxes imposed by this chapter if the marketplace provider
demonstrates that the failure resulted from the marketplace
provider's good faith reliance on incorrect or insufficient
information provided by the marketplace seller. The marketplace
seller is liable for a deficiency resulting from incorrect or
insufficient information provided by the marketplace seller.
(h) A marketplace provider and marketplace seller that are
affiliates or associates, as defined by Section 1.002, Business
Organizations Code, are jointly and severally liable for a
deficiency resulting from a sale made by the marketplace seller
through the marketplace.
(i) This section does not affect the tax liability of a
purchaser under Section 151.052 or 151.102.
(j) A court may not certify an action brought against a
marketplace provider concerning this section as a class action.
(k) The comptroller may adopt rules and forms to implement
this section and by rule except certain marketplace providers from
some or all of the requirements of this section.
SECTION 3. Section 321.203, Tax Code, is amended by adding
Subsection (e-1) to read as follows:
(e-1) Notwithstanding any other provision of this section,
a sale of a taxable item made by a marketplace seller through a
marketplace as provided by Section 151.0242 is consummated at the
location in this state to which the item is shipped or delivered or
at which possession is taken by the purchaser.
SECTION 4. Section 323.203, Tax Code, is amended by adding
Subsection (e-1) to read as follows:
(e-1) Notwithstanding any other provision of this section,
a sale of a taxable item made by a marketplace seller through a
marketplace as provided by Section 151.0242 is consummated at the
location in this state to which the item is shipped or delivered or
at which possession is taken by the purchaser.
SECTION 5. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 6. This Act takes effect October 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1525 was passed by the House on April
11, 2019, by the following vote: Yeas 145, Nays 1, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1525 on May 10, 2019, by the following vote: Yeas 103, Nays 3,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1525 was passed by the Senate, with
amendments, on May 3, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor