Texas 2019 - 86th Regular

Texas House Bill HB3364 Compare Versions

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1	1	By: Springer H.B. No. 3364
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to sales and use taxes on electronic nicotine delivery
7	7	system vapor products; imposing taxes.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
10	10	adding Chapter 164 to read as follows:
11	11	CHAPTER 164. TAX ON ELECTRONIC NICOTINE DELIVERY SYSTEM VAPOR
12	12	PRODUCTS
13	13	Sec. 164.0001. DEFINITIONS. In this chapter:
14	14	(1) "Electronic nicotine delivery system" has the
15	15	meaning assigned to "e-cigarette" by Section 161.081, Health and
16	16	Safety Code.
17	17	(2) "Vapor product" means a consumable nicotine liquid
18	18	solution or any other consumable solutions with materials, which
19	19	may or may not contain nicotine, suitable for use in an electronic
20	20	nicotine delivery system.
21	21	Sec. 164.0002. ELECTRONIC NICOTINE DELIVERY SYSTEM VAPOR
22	22	PRODUCT SALES TAX. (a) A tax is imposed on each sale of a vapor
23	23	product in this state.
24	24	(b) The tax rate is five cents for each milliliter or
25	25	fractional part of a milliliter of vapor product sold.
26	26	(c) The tax imposed under this section is in addition to the
27	27	tax imposed under Subchapter C, Chapter 151. The tax imposed under
28	28	this section does not apply to a sale unless the tax imposed under
29	29	Subchapter C, Chapter 151, applies to the sale.
30	30	Sec. 164.0003. ELECTRONIC NICOTINE DELIVERY SYSTEM VAPOR
31	31	PRODUCT USE TAX. (a) A tax is imposed on the storage, use, or other
32	32	consumption in this state of a vapor product purchased from a
33	33	retailer for storage, use, or other consumption in this state.
34	34	(b) The tax rate is five cents for each milliliter or
35	35	fractional part of a milliliter of vapor product stored, used, or
36	36	otherwise consumed in this state.
37	37	(c) The tax imposed under this section is in addition to the
38	38	tax imposed under Subchapter D, Chapter 151. The tax imposed under
39	39	this section does not apply to the storage, use, or other
40	40	consumption of a vapor product unless the tax imposed under
41	41	Subchapter D, Chapter 151, applies to the storage, use, or other
42	42	consumption.
43	43	Sec. 164.0004. APPLICATION OF OTHER PROVISIONS OF CODE.
44	44	(a) Except as provided by this chapter:
45	45	(1) the taxes imposed under this chapter are
46	46	administered, imposed, collected, and enforced in the same manner
47	47	as the taxes under Chapter 151 are administered, imposed,
48	48	collected, and enforced; and
49	49	(2) the provisions of Chapter 151 applicable to the
50	50	sales tax imposed under Subchapter C, Chapter 151, and the use tax
51	51	imposed under Subchapter D, Chapter 151, apply to the sales and use
52	52	taxes imposed under this chapter.
53	53	(b) A change in the law relating to the taxation of the sale
54	54	or use of a vapor product under Chapter 151 also applies to the
55	55	sales or use tax imposed under this chapter.
56	56	Sec. 164.0005. REPORTS. (a) A person required to file a
57	57	report under Section 151.403 who is also required to collect or pay
58	58	a tax under this chapter shall file with the comptroller a report
59	59	stating:
60	60	(1) for sales tax purposes, the volume of vapor
61	61	products sold by the seller during the reporting period;
62	62	(2) for use tax purposes, the volume of vapor products
63	63	sold by the retailer during the reporting period for storage, use,
64	64	or other consumption in this state;
65	65	(3) the volume of vapor products subject to the use tax
66	66	that were acquired during the reporting period for storage, use, or
67	67	other consumption in this state by a purchaser who did not pay the
68	68	tax to a retailer;
69	69	(4) the amount of the taxes due under this chapter for
70	70	the reporting period; and
71	71	(5) any other information required by the comptroller.
72	72	(b) The report required by this section for a reporting
73	73	period is due on the same date that the tax payment for the period is
74	74	due.
75	75	Sec. 164.0006. RECORDS. A person required to file a report
76	76	under Section 151.403 who is also required to collect or pay a tax
77	77	under this chapter shall keep a complete record of:
78	78	(1) the volume of vapor products sold in this state
79	79	during each reporting period;
80	80	(2) the volume of vapor products, including the
81	81	constituent parts of vapor products, purchased from every source
82	82	during each reporting period;
83	83	(3) all sales and use taxes, and any money represented
84	84	to be sales or use tax, collected during each reporting period; and
85	85	(4) any other information required by the comptroller.
86	86	Sec. 164.0007. DISPOSITION OF PROCEEDS. The comptroller
87	87	shall deposit the proceeds from taxes imposed under this chapter to
88	88	the credit of the general revenue fund.
89	89	SECTION 2. This Act takes effect September 1, 2019.