By: Springer H.B. No. 3364
A BILL TO BE ENTITLED
AN ACT
relating to sales and use taxes on electronic nicotine delivery
system vapor products; imposing taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 164 to read as follows:
CHAPTER 164. TAX ON ELECTRONIC NICOTINE DELIVERY SYSTEM VAPOR
PRODUCTS
Sec. 164.0001. DEFINITIONS. In this chapter:
(1) "Electronic nicotine delivery system" has the
meaning assigned to "e-cigarette" by Section 161.081, Health and
Safety Code.
(2) "Vapor product" means a consumable nicotine liquid
solution or any other consumable solutions with materials, which
may or may not contain nicotine, suitable for use in an electronic
nicotine delivery system.
Sec. 164.0002. ELECTRONIC NICOTINE DELIVERY SYSTEM VAPOR
PRODUCT SALES TAX. (a) A tax is imposed on each sale of a vapor
product in this state.
(b) The tax rate is five cents for each milliliter or
fractional part of a milliliter of vapor product sold.
(c) The tax imposed under this section is in addition to the
tax imposed under Subchapter C, Chapter 151. The tax imposed under
this section does not apply to a sale unless the tax imposed under
Subchapter C, Chapter 151, applies to the sale.
Sec. 164.0003. ELECTRONIC NICOTINE DELIVERY SYSTEM VAPOR
PRODUCT USE TAX. (a) A tax is imposed on the storage, use, or other
consumption in this state of a vapor product purchased from a
retailer for storage, use, or other consumption in this state.
(b) The tax rate is five cents for each milliliter or
fractional part of a milliliter of vapor product stored, used, or
otherwise consumed in this state.
(c) The tax imposed under this section is in addition to the
tax imposed under Subchapter D, Chapter 151. The tax imposed under
this section does not apply to the storage, use, or other
consumption of a vapor product unless the tax imposed under
Subchapter D, Chapter 151, applies to the storage, use, or other
consumption.
Sec. 164.0004. APPLICATION OF OTHER PROVISIONS OF CODE.
(a) Except as provided by this chapter:
(1) the taxes imposed under this chapter are
administered, imposed, collected, and enforced in the same manner
as the taxes under Chapter 151 are administered, imposed,
collected, and enforced; and
(2) the provisions of Chapter 151 applicable to the
sales tax imposed under Subchapter C, Chapter 151, and the use tax
imposed under Subchapter D, Chapter 151, apply to the sales and use
taxes imposed under this chapter.
(b) A change in the law relating to the taxation of the sale
or use of a vapor product under Chapter 151 also applies to the
sales or use tax imposed under this chapter.
Sec. 164.0005. REPORTS. (a) A person required to file a
report under Section 151.403 who is also required to collect or pay
a tax under this chapter shall file with the comptroller a report
stating:
(1) for sales tax purposes, the volume of vapor
products sold by the seller during the reporting period;
(2) for use tax purposes, the volume of vapor products
sold by the retailer during the reporting period for storage, use,
or other consumption in this state;
(3) the volume of vapor products subject to the use tax
that were acquired during the reporting period for storage, use, or
other consumption in this state by a purchaser who did not pay the
tax to a retailer;
(4) the amount of the taxes due under this chapter for
the reporting period; and
(5) any other information required by the comptroller.
(b) The report required by this section for a reporting
period is due on the same date that the tax payment for the period is
due.
Sec. 164.0006. RECORDS. A person required to file a report
under Section 151.403 who is also required to collect or pay a tax
under this chapter shall keep a complete record of:
(1) the volume of vapor products sold in this state
during each reporting period;
(2) the volume of vapor products, including the
constituent parts of vapor products, purchased from every source
during each reporting period;
(3) all sales and use taxes, and any money represented
to be sales or use tax, collected during each reporting period; and
(4) any other information required by the comptroller.
Sec. 164.0007. DISPOSITION OF PROCEEDS. The comptroller
shall deposit the proceeds from taxes imposed under this chapter to
the credit of the general revenue fund.
SECTION 2. This Act takes effect September 1, 2019.