Texas 2019 - 86th Regular

Texas House Bill HB2153 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2153
	1	+	By: Burrows (Senate Sponsor - Nelson) H.B. No. 2153
	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 favorably by the following vote:
	5	+	Yeas 14, Nays 0; April 25, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to a single local use tax rate as an alternative to
6	12		combined local use tax rates for computing the amount of local use
7	13		taxes remote sellers are required to collect and to the allocation
8	14		of tax revenue collected at that rate.
9	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	16		SECTION 1. The purpose of this Act is to provide an
11	17		optional, simplified means of computing the amount of local use tax
12	18		remote sellers are required to collect following the decision of
13	19		the United States Supreme Court in South Dakota v. Wayfair, Inc.,
14	20		138 S. Ct. 2080 (2018).
15	21		SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended
16	22		by adding Section 151.0595 to read as follows:
17	23		Sec. 151.0595. SINGLE LOCAL TAX RATE FOR REMOTE SELLERS.
18	24		(a) In this section, "remote seller" means a seller whose only
19	25		activities in this state are described by Section 151.107(a)(4) or
20	26		(5).
21	27		(b) A remote seller required to collect and remit one or
22	28		more local use taxes in connection with a sale of a taxable item
23	29		made by the remote seller shall compute the amount to collect and
24	30		remit using:
25	31		(1) the combined rate of all applicable local use
26	32		taxes authorized or governed by Title 3; or
27	33		(2) at the remote seller's election, the single local
28	34		use tax rate published in the Texas Register as required by
29	35		Subsection (d).
30	36		(c) A remote seller who elects under Subsection (b)(2) to
31	37		use the single local use tax rate shall notify the comptroller of
32	38		the election before using that rate. The election applies to all
33	39		sales of taxable items made by the remote seller unless the remote
34	40		seller revokes the election by notifying the comptroller. Notice to
35	41		the comptroller under this subsection must be in the form and manner
36	42		provided by the comptroller.
37	43		(d) The single local use tax rate effective in a calendar
38	44		year is equal to the estimated average rate of local sales and use
39	45		taxes imposed in this state during the preceding state fiscal year,
40	46		as determined under Subsection (e). Before the beginning of a
41	47		calendar year, the comptroller shall publish in the Texas Register
42	48		notice of the single local use tax rate that will be in effect for
43	49		that calendar year.
44	50		(e) As soon as practicable after the end of a state fiscal
45	51		year, the comptroller shall determine the estimated average rate of
46	52		local sales and use taxes imposed in this state during the preceding
47	53		state fiscal year by:
48	54		(1) dividing the total amount of net local sales and
49	55		use taxes remitted to the comptroller under this section and Title 3
50	56		during that state fiscal year by the total amount of net state sales
51	57		and use taxes remitted to the comptroller under this chapter during
52	58		that state fiscal year;
53	59		(2) multiplying the amount computed under Subdivision
54	60		(1) by the rate provided by Section 151.051; and
55	61		(3) rounding the amount computed under Subdivision (2)
56	62		to the nearest .0025.
57	63		(f) Notwithstanding Section 111.104(b), a purchaser may
58	64		annually apply for a refund of any amount by which the amount of use
59	65		tax computed using the rate described by Subsection (b)(2) and paid
60	66		by the purchaser exceeds the amount the purchaser would have paid if
61	67		that tax had been computed using the rate described by Subsection
62	68		(b)(1). The comptroller may adopt rules regarding the procedure
63	69		and proof required for the refund.
64	70		(g) A person storing, using, or consuming in this state a
65	71		taxable item purchased from a remote seller is not liable for any
66	72		additional amount of local use tax authorized or governed by Title 3
67	73		if the remote seller elects under Subsection (b)(2) to use the
68	74		single local use tax rate and the person pays to the remote seller
69	75		the amount of local use tax computed on the purchase using the
70	76		single local use tax rate.
71	77		(h) The comptroller shall administer, collect, and enforce
72	78		local use taxes computed using the single local use tax rate.
73	79		(i) The comptroller shall apportion and distribute revenue
74	80		from local use taxes computed using the single local use tax rate as
75	81		provided by Section 403.107, Government Code.
76	82		(j) The comptroller may adopt rules to administer this
77	83		section.
78	84		SECTION 3. Section 403.107, Government Code, is reenacted
79	85		and amended to read as follows:
80	86		Sec. 403.107. SINGLE LOCAL USE TAXES COLLECTED BY REMOTE
81	87		SELLERS [SALES AND USE TAX FEES]. (a) The comptroller shall
82	88		deposit revenue remitted to the comptroller from taxes computed
83	89		using the single local use tax rate under Section 151.0595(b)(2)
84	90		[fees imposed under Section 151.059], Tax Code, in the state
85	91		treasury and shall keep records of the amount of money deposited
86	92		[collected] for each reporting period. Money deposited under this
87	93		subsection [Such fees] shall be held in trust for the benefit of
88	94		eligible taxing units, as determined under Subsection (b) [in the
89	95		suspense account of each eligible taxing unit]. The comptroller
90	96		shall distribute money held in trust [in the suspense accounts]
91	97		under this section to each eligible taxing unit in the amount and
92	98		manner provided by [federal law or] this section.
93	99		(b) A local taxing unit is an eligible taxing unit for
94	100		purposes of [to receive funds under] this section if it has adopted
95	101		a sales and use tax authorized or governed by Title 3, Tax Code
96	102		[under Chapter 321, Chapter 322, or Chapter 323, Tax Code, or has
97	103		adopted a local sales and use tax governed in part by any provision
98	104		of those chapters].
99	105		(c) Subject to Subsection (d), the [The] comptroller shall
100	106		transmit to each eligible taxing unit's treasurer, or to the
101	107		officer performing the functions of that office, on a monthly
102	108		[quarterly] basis, the taxing unit's share of money held in trust
103	109		under Subsection (a) [the fees remitted to the comptroller],
104	110		together with the pro rata share of any penalty or interest on
105	111		delinquent taxes computed using the single local use tax rate
106	112		[fees] that may be collected. Before transmitting the funds, the
107	113		comptroller shall deduct two percent of [the amount allocated to]
108	114		each taxing unit's share [unit] as a charge by the state for its
109	115		services under this section and deposit that amount into the state
110	116		treasury to the credit of the comptroller's operating fund.
111	117		Interest earned on all deposits made in the state treasury under
112	118		this section shall be credited to the general revenue fund.
113	119		(d) The comptroller shall retain [in the suspense account
114	120		for a taxing unit] a portion of each eligible [the] taxing unit's
115	121		share of money held in trust under Subsection (a) [the fees
116	122		collected], not to exceed five percent of the amount eligible to be
117	123		transmitted [remitted] to the taxing unit under Subsection (c).
118	124		From the amounts retained [in a taxing unit's suspense account],
119	125		the comptroller may make refunds for overpayments of taxes computed
120	126		using the single local use tax rate, make refunds to purchasers as
121	127		provided by Section 151.0595(f), Tax Code, and [to the account and
122	128		to] redeem dishonored checks and drafts deposited under Subsection
123	129		(a) [to the credit of the account].
124	130		(e) The [Unless another method is required by federal law,
125	131		the] comptroller shall compute for each calendar month [quarter]
126	132		the percentage of the total sales and use tax allocations made
127	133		pursuant to Title 3, [of the] Tax Code, including any local sales
128	134		and use taxes governed by any provision of Title 3, [of the] Tax
129	135		Code, to each eligible taxing unit. The comptroller shall
130	136		determine each eligible taxing unit's share of the money held in
131	137		trust from deposits under Subsection (a) for that month by applying
132	138		the percentage computed under this subsection for the eligible
133	139		taxing unit [and shall apply that percentage] to the total amount
134	140		held in trust from deposits for that month [fees collected under
135	141		Section 151.059, Tax Code, and allocated to eligible taxing units
136	142		in that quarter].
137	143		(f) The comptroller may combine an eligible taxing unit's
138	144		share of the money held in trust under Subsection (a) [fees remitted
139	145		or collected under Section 151.059, Tax Code, a suspense account
140	146		under this section, or an allocation made under this section] with
141	147		other money [trust or suspense accounts] held for that taxing unit
142	148		[or other allocations made to that taxing unit under Title 3 of the
143	149		Tax Code].
144	150		(g) The comptroller may adopt rules to administer this
145	151		section.
146	152		SECTION 4. Sections 151.059 and 151.107(c), Tax Code, as
147	153		added by Chapter 291 (H.B. 2215), Acts of the 71st Legislature,
148	154		Regular Session, 1989, are repealed.
149	155		SECTION 5. The changes in law made by this Act do not affect
150	156		tax liability accruing before the effective date of this Act. That
151	157		liability continues in effect as if this Act had not been enacted,
152	158		and the former law is continued in effect for the collection of
153	159		taxes due and for civil and criminal enforcement of the liability
154	160		for those taxes.
155	161		SECTION 6. (a) This Act does not require a remote seller,
156	162		as defined by Section 151.0595, Tax Code, as added by this Act, to
157	163		collect local use taxes on sales of taxable items made before
158	164		October 1, 2019.
159	165		(b) Notwithstanding Section 151.0595(d), Tax Code, as added
160	166		by this Act, the single local use tax rate in effect for the period
161	167		beginning October 1, 2019, and ending December 31, 2019, is 1.75
162	168		percent.
163	169		SECTION 7. This Act takes effect October 1, 2019.
164		-	______________________________ ______________________________
165		-	President of the Senate Speaker of the House
166		-	I certify that H.B. No. 2153 was passed by the House on April
167		-	11, 2019, by the following vote: Yeas 145, Nays 0, 2 present, not
168		-	voting.
169		-	______________________________
170		-	Chief Clerk of the House
171		-	I certify that H.B. No. 2153 was passed by the Senate on May
172		-	3, 2019, by the following vote: Yeas 31, Nays 0.
173		-	______________________________
174		-	Secretary of the Senate
175		-	APPROVED: _____________________
176		-	Date
177		-	_____________________
178		-	Governor
	170	+	* * * * *