H.B. No. 2358
AN ACT
relating to the payment of certain sales and use taxes by a
retailer.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 111.016, Tax Code, is amended by adding
Subsection (a-2) and amending Subsection (b) to read as follows:
(a-2) A retailer who advertises, holds out, or states that
the retailer will pay the tax as provided by Section 151.704(b) and
makes a sale of a taxable item:
(1) is presumed to have received or collected the
amount of the taxes imposed by Chapter 151 on the sale or storage,
use, or consumption in this state of the taxable item;
(2) shall hold the amount described by Subdivision (1)
in trust for the benefit of the state; and
(3) is liable to the state for the amount described by
Subdivision (1) plus any accrued penalties and interest on the
amount.
(b) With respect to tax or other money subject to the
provisions of Subsection (a) or (a-2), an individual who controls
or supervises the collection of tax or money from another person, or
an individual who controls or supervises the accounting for and
paying over of the tax or money, and who wilfully fails to pay or
cause to be paid the tax or money is liable as a responsible
individual for an amount equal to the tax or money not paid or
caused to be paid. The liability imposed by this subsection is in
addition to any other penalty provided by law. The dissolution of a
corporation, association, limited liability company, or
partnership does not affect a responsible individual's liability
under this subsection.
SECTION 2. Section 151.704, Tax Code, is amended to read as
follows:
Sec. 151.704. SALES TAX ABSORPTION [PROHIBITED
ADVERTISING]; CRIMINAL PENALTY. (a) Except as provided by
Subsections (b) and (c), a [A] retailer commits an offense if the
retailer directly or indirectly advertises, holds out, or states to
a customer or to the public that the tax is not part of the sales
price payable by the customer [retailer:
[(1) will assume, absorb, or refund a part of the tax;
or
[(2) will not add the tax to the sales price of a taxable
item sold, leased, or rented].
(b) A retailer may directly or indirectly advertise, hold
out, or state to a customer or to the public that the retailer will
pay the tax for the customer if:
(1) the retailer indicates in the advertisement,
holding out, or statement that the retailer is paying the tax for
the customer;
(2) the retailer does not indicate or imply in the
advertisement, holding out, or statement that the sale is exempt or
excluded from taxation; and
(3) any purchaser's receipt or other statement given
to the customer listing the sales price paid or to be paid by the
customer separately states the amount of the tax and indicates that
the tax will be paid by the retailer.
(c) This section does not prohibit a utility from billing a
customer in one lump-sum price including the utility sales price
and the amount of the tax imposed by this chapter.
(d) [(c)] An offense under this section is a misdemeanor
punishable by a fine of not more than $500.
SECTION 3. 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 4. The change in law made by this Act applies only
to an offense committed on or after the effective date of this Act.
An offense committed before the effective date of this Act is
governed by the law in effect on the date the offense was committed,
and the former law is continued in effect for that purpose. For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense occurred
before that date.
SECTION 5. This Act takes effect October 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2358 was passed by the House on May 3,
2019, by the following vote: Yeas 140, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2358 was passed by the Senate on May
21, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor