Texas 2019 - 86th Regular

Texas House Bill HB4013 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R19909 SRA-D
2		-	By: Miller, Thierry, Zerwas, Oliverson, H.B. No. 4013
3		-	Springer, et al.
4		-	Substitute the following for H.B. No. 4013:
5		-	By: Murphy C.S.H.B. No. 4013
	1	+	86R9133 SRA-D
	2	+	By: Miller H.B. No. 4013
6	3
7	4
8	5		A BILL TO BE ENTITLED
9	6		AN ACT
10		-	relating to sales and use taxes on e-cigarettes and vapor products;
11		-	imposing taxes; providing an administrative penalty; authorizing
12		-	the imposition of a fee.
	7	+	relating to sales and use taxes on e-cigarette vapor products;
	8	+	imposing taxes; providing an administrative penalty.
13	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	10		SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
15	11		adding Chapter 164 to read as follows:
16		-	CHAPTER 164. TAX ON E-~~CIGARETTES AND~~ VAPOR PRODUCTS
	12	+	CHAPTER 164. TAX ON E-CIGARETTE VAPOR PRODUCTS
17	13		Sec. 164.0001. DEFINITIONS. In this chapter:
18	14		(1) "E-cigarette" has the meaning assigned by Section
19	15		161.081, Health and Safety Code.
20		-	(2) "Vapor product" means a consumable liquid solution
21		-	or other material aerosolized or vaporized during the use of an
22		-	e-cigarette, regardless of whether the liquid contains nicotine.
23		-	Sec. 164.0002. E-CIGARETTE AND VAPOR PRODUCT SALES TAX.
24		-	(a) A tax is imposed on each sale of an e-cigarette or vapor product
25		-	in this state.
26		-	(b) The tax rate is 10 percent of the sales price of an
27		-	e-cigarette or vapor product sold.
28		-	(c) A tax imposed under this section is in addition to the
29		-	tax imposed under Subchapter C, Chapter 151. A tax imposed under
	16	+	(2) "Vapor product" means a consumable nicotine liquid
	17	+	solution or other material containing nicotine suitable for use in
	18	+	an e-cigarette.
	19	+	Sec. 164.0002. E-CIGARETTE VAPOR PRODUCT SALES TAX. (a) A
	20	+	tax is imposed on each sale of a vapor product in this state.
	21	+	(b) The tax rate is five cents for each milliliter or
	22	+	fractional part of a milliliter of vapor product sold.
	23	+	(c) The tax imposed under this section is in addition to the
	24	+	tax imposed under Subchapter C, Chapter 151. The tax imposed under
30	25		this section does not apply to a sale unless the tax imposed under
31	26		Subchapter C, Chapter 151, applies to the sale.
32		-	Sec. 164.0003. E-CIGARETTE ~~AND~~ VAPOR PRODUCT USE TAX. (a)
33		-	A tax is imposed on the storage, use, or other consumption in this
34		-	state of ~~an e-cigarette or~~ vapor product purchased from a retailer
35		-	~~for storage, use,~~ or other consumption in this state.
36		-	(b) The tax rate is ~~10 percent of the sales price of an~~
37		-	~~e-cigarette or~~ vapor product stored, used, or ~~otherwise consumed in~~
38		-	this state.
39		-	(c) A tax imposed under this section is in addition to the
40		-	tax imposed under Subchapter D, Chapter 151. A tax imposed under
	27	+	Sec. 164.0003. E-CIGARETTE VAPOR PRODUCT USE TAX. (a) A
	28	+	tax is imposed on the storage, use, or other consumption in this
	29	+	state of a vapor product purchased from a retailer for storage, use,
	30	+	or other consumption in this state.
	31	+	(b) The tax rate is five cents for each milliliter or
	32	+	fractional part of a milliliter of vapor product stored, used, or
	33	+	otherwise consumed in this state.
	34	+	(c) The tax imposed under this section is in addition to the
	35	+	tax imposed under Subchapter D, Chapter 151. The tax imposed under
41	36		this section does not apply to the storage, use, or other
42		-	consumption of ~~an e-cigarette or~~ vapor product unless the tax
43		-	~~imposed under~~ Subchapter D, Chapter 151, applies to the storage,
44		-	~~use, or other~~ consumption.
	37	+	consumption of a vapor product unless the tax imposed under
	38	+	Subchapter D, Chapter 151, applies to the storage, use, or other
	39	+	consumption.
45	40		Sec. 164.0004. APPLICATION OF OTHER PROVISIONS OF CODE.
46	41		(a) Except as provided by this chapter:
47	42		(1) the taxes imposed under this chapter are
48	43		administered, imposed, collected, and enforced in the same manner
49	44		as the taxes under Chapter 151 are administered, imposed,
50	45		collected, and enforced; and
51	46		(2) the provisions of Chapter 151 applicable to the
52	47		sales tax imposed under Subchapter C, Chapter 151, and the use tax
53	48		imposed under Subchapter D, Chapter 151, apply to the sales and use
54	49		taxes imposed under this chapter.
55	50		(b) A change in the law relating to the taxation of the sale
56		-	or use of ~~an e-cigarette or~~ vapor product under Chapter 151 also
57		-	~~applies to the~~ sales or use tax imposed under this chapter.
	51	+	or use of a vapor product under Chapter 151 also applies to the
	52	+	sales or use tax imposed under this chapter.
58	53		Sec. 164.0005. REPORTS. (a) A person required to file a
59	54		report under Section 151.403 who is also required to collect or pay
60	55		a tax under this chapter shall file with the comptroller a report
61	56		stating:
62		-	(1) for sales tax purposes, the amount of total
63		-	receipts from e-cigarettes and vapor products sold by the seller
64		-	during the reporting period;
65		-	(2) for use tax purposes, the amount of total receipts
66		-	from e-cigarettes and vapor products sold by the retailer during
67		-	the reporting period for storage, use, or other consumption in this
68		-	state;
69		-	(3) the amount of the total sales prices of
70		-	e-cigarettes and vapor products subject to the use tax that were
71		-	acquired during the reporting period for storage, use, or other
72		-	consumption in this state by a purchaser who did not pay the tax to a
73		-	retailer;
	57	+	(1) for sales tax purposes, the volume of vapor
	58	+	products sold by the seller during the reporting period;
	59	+	(2) for use tax purposes, the volume of vapor products
	60	+	sold by the retailer during the reporting period for storage, use,
	61	+	or other consumption in this state;
	62	+	(3) the volume of vapor products subject to the use tax
	63	+	that were acquired during the reporting period for storage, use, or
	64	+	other consumption in this state by a purchaser who did not pay the
	65	+	tax to a retailer;
74	66		(4) the amount of the taxes due under this chapter for
75	67		the reporting period; and
76	68		(5) any other information required by the comptroller.
77	69		(b) The report required by this section for a reporting
78	70		period is due on the same date that the tax payment for the period is
79	71		due.
80		-	Sec. 164.0006. RECORDS. (a) A person required to file a
81		-	report under Section 151.403 who is also required to collect or pay
82		-	a tax under this chapter shall keep a complete record of:
83		-	(1) all gross receipts from each sale to which this
84		-	chapter applies occurring during each reporting period, along with
85		-	documentation relating to those receipts;
86		-	(2) all purchases of e-cigarettes and vapor products,
87		-	including the constituent parts of e-cigarettes and vapor products,
88		-	from every source during each reporting period, along with
89		-	documentation relating to those purchases;
	72	+	Sec. 164.0006. RECORDS. A person required to file a report
	73	+	under Section 151.403 who is also required to collect or pay a tax
	74	+	under this chapter shall keep a complete record of:
	75	+	(1) the volume of vapor products sold in this state
	76	+	during each reporting period;
	77	+	(2) the volume of vapor products, including the
	78	+	constituent parts of vapor products, purchased from every source
	79	+	during each reporting period;
90	80		(3) all sales and use taxes, and any money represented
91		-	to be sales or use tax, collected under this chapter during each
92		-	reporting period; and
	81	+	to be sales or use tax, collected during each reporting period; and
93	82		(4) any other information required by the comptroller.
94		-	(b) A person shall keep the records required by Subsection
95		-	(a) for the period required by Section 151.025(b).
96	83		Sec. 164.0007. DISPOSITION OF PROCEEDS. The comptroller
97	84		shall deposit the proceeds from taxes imposed under this chapter to
98		-	the credit of the ~~foundation school~~ fund.
	85	+	the credit of the general revenue fund.
99	86		Sec. 164.0008. DISCIPLINARY ACTION FOR CERTAIN VIOLATIONS.
100	87		(a) A person required to file a report under Section 151.403 who is
101	88		also required to collect or pay a tax under this chapter is subject
102	89		to disciplinary action as provided by this section if:
103	90		(1) an agent or employee of the person commits an
104	91		offense under Subchapter H, Chapter 161, Health and Safety Code;
105	92		and
106	93		(2) the person, with criminal negligence, failed to
107	94		prevent the offense through adequate supervision and training of
108	95		the agent or employee.
109	96		(b) If the comptroller finds, after notice and an
110	97		opportunity for a hearing, that a person described by Subsection
111	98		(a) has violated Subchapter H, Chapter 161, Health and Safety Code,
112	99		at a place of business for which a sales tax permit under Chapter
113	100		151 has been issued, the comptroller may suspend the permit for that
114	101		place of business or administratively assess a fine as follows:
115	102		(1) if the person has not been found to have violated
116	103		Subchapter H, Chapter 161, Health and Safety Code, at that place of
117	104		business during the preceding 12 months, the comptroller may
118	105		require the person to pay a fine in an amount not to exceed $500;
119	106		(2) if the person has been found to have violated
120	107		Subchapter H, Chapter 161, Health and Safety Code, at that place of
121	108		business once during the preceding 12 months, the comptroller may
122	109		require the person to pay a fine in an amount not to exceed $750; and
123	110		(3) if the person has been found to have violated
124	111		Subchapter H, Chapter 161, Health and Safety Code, at that place of
125	112		business at least twice during the preceding 12 months, the
126	113		comptroller may require the person to pay a fine in an amount not to
127	114		exceed $1,000 or suspend the sales tax permit for that place of
128	115		business for not more than three days.
129	116		(c) Except as provided by Section 164.0009, if the person
130	117		has been found to have violated Section 161.082(b), Health and
131	118		Safety Code, on four or more previous and separate occasions at the
132	119		same place of business during the preceding 24 months, the
133	120		comptroller shall revoke the sales tax permit for that place of
134	121		business.
135	122		(d) A person whose sales tax permit has been revoked under
136	123		this section may not apply for a sales tax permit under Chapter 151
137	124		for the same place of business before the expiration of six months
138	125		after the effective date of the revocation.
139	126		Sec. 164.0009. ACTIONS OF EMPLOYEE. (a) For purposes of
140		-	Subchapter H, Chapter 161, Health and Safety Code, relating to the
141		-	sale or delivery of e-cigarettes to a minor, the comptroller may
142		-	suspend a sales tax permit of a person required to file a report
143		-	under Section 151.403 who is also required to collect or pay a tax
144		-	under this chapter but may not revoke the permit under Section
145		-	164.0008 if the comptroller finds that:
	127	+	Subchapter H, Chapter 161, Health and Safety Code, and the
	128	+	provisions of this code relating to the sale or delivery of
	129	+	e-cigarettes to a minor, the comptroller may suspend a sales tax
	130	+	permit of a person required to file a report under Section 151.403
	131	+	who is also required to collect or pay a tax under this chapter but
	132	+	may not revoke the permit under Section 164.0008 if the comptroller
	133	+	finds that:
146	134		(1) the person has not violated Section 161.082(b),
147	135		Health and Safety Code, more than four times at the place of
148	136		business for which the permit is issued in the 24-month period
149	137		preceding the violation in question;
150	138		(2) the person requires its employees to attend a
151	139		comptroller-approved seller training program;
152	140		(3) the employee has actually attended a
153	141		comptroller-approved seller training program; and
154	142		(4) the person has not directly or indirectly
155	143		encouraged the employee to violate the law.
156	144		(b) The comptroller shall adopt rules or policies
157	145		establishing the minimum requirements for approved seller training
158	146		programs. On application, the comptroller shall approve seller
159	147		training programs meeting the requirements that are sponsored
160	148		privately or by public community colleges. The comptroller may
161	149		charge an application fee in an amount necessary to defray the
162	150		expense of processing the application.
163	151		(c) The comptroller may approve under this section a seller
164	152		training program sponsored by a person described by Subsection (a)
165	153		for the purpose of training the person's employees without regard
166	154		to whether the employees are located at the same place of business.
167	155		This subsection applies only to a person who employs at least 100
168	156		persons at any one time during the permit year who sell
169	157		e-cigarettes.
170	158		SECTION 2. This Act takes effect September 1, 2019.