Texas 2019 - 86th Regular

Texas Senate Bill SB1332 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R9133 SRA-D
2	2	By: Johnson, et al. S.B. No. 1332
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to sales and use taxes on e-cigarette vapor products;
8	8	imposing taxes; providing an administrative penalty.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
11	11	adding Chapter 164 to read as follows:
12	12	CHAPTER 164. TAX ON E-CIGARETTE VAPOR PRODUCTS
13	13	Sec. 164.0001. DEFINITIONS. In this chapter:
14	14	(1) "E-cigarette" has the meaning assigned by Section
15	15	161.081, Health and Safety Code.
16	16	(2) "Vapor product" means a consumable nicotine liquid
17	17	solution or other material containing nicotine suitable for use in
18	18	an e-cigarette.
19	19	Sec. 164.0002. E-CIGARETTE VAPOR PRODUCT SALES TAX. (a) A
20	20	tax is imposed on each sale of a vapor product in this state.
21	21	(b) The tax rate is five cents for each milliliter or
22	22	fractional part of a milliliter of vapor product sold.
23	23	(c) The tax imposed under this section is in addition to the
24	24	tax imposed under Subchapter C, Chapter 151. The tax imposed under
25	25	this section does not apply to a sale unless the tax imposed under
26	26	Subchapter C, Chapter 151, applies to the sale.
27	27	Sec. 164.0003. E-CIGARETTE VAPOR PRODUCT USE TAX. (a) A
28	28	tax is imposed on the storage, use, or other consumption in this
29	29	state of a vapor product purchased from a retailer for storage, use,
30	30	or other consumption in this state.
31	31	(b) The tax rate is five cents for each milliliter or
32	32	fractional part of a milliliter of vapor product stored, used, or
33	33	otherwise consumed in this state.
34	34	(c) The tax imposed under this section is in addition to the
35	35	tax imposed under Subchapter D, Chapter 151. The tax imposed under
36	36	this section does not apply to the storage, use, or other
37	37	consumption of a vapor product unless the tax imposed under
38	38	Subchapter D, Chapter 151, applies to the storage, use, or other
39	39	consumption.
40	40	Sec. 164.0004. APPLICATION OF OTHER PROVISIONS OF CODE.
41	41	(a) Except as provided by this chapter:
42	42	(1) the taxes imposed under this chapter are
43	43	administered, imposed, collected, and enforced in the same manner
44	44	as the taxes under Chapter 151 are administered, imposed,
45	45	collected, and enforced; and
46	46	(2) the provisions of Chapter 151 applicable to the
47	47	sales tax imposed under Subchapter C, Chapter 151, and the use tax
48	48	imposed under Subchapter D, Chapter 151, apply to the sales and use
49	49	taxes imposed under this chapter.
50	50	(b) A change in the law relating to the taxation of the sale
51	51	or use of a vapor product under Chapter 151 also applies to the
52	52	sales or use tax imposed under this chapter.
53	53	Sec. 164.0005. REPORTS. (a) A person required to file a
54	54	report under Section 151.403 who is also required to collect or pay
55	55	a tax under this chapter shall file with the comptroller a report
56	56	stating:
57	57	(1) for sales tax purposes, the volume of vapor
58	58	products sold by the seller during the reporting period;
59	59	(2) for use tax purposes, the volume of vapor products
60	60	sold by the retailer during the reporting period for storage, use,
61	61	or other consumption in this state;
62	62	(3) the volume of vapor products subject to the use tax
63	63	that were acquired during the reporting period for storage, use, or
64	64	other consumption in this state by a purchaser who did not pay the
65	65	tax to a retailer;
66	66	(4) the amount of the taxes due under this chapter for
67	67	the reporting period; and
68	68	(5) any other information required by the comptroller.
69	69	(b) The report required by this section for a reporting
70	70	period is due on the same date that the tax payment for the period is
71	71	due.
72	72	Sec. 164.0006. RECORDS. A person required to file a report
73	73	under Section 151.403 who is also required to collect or pay a tax
74	74	under this chapter shall keep a complete record of:
75	75	(1) the volume of vapor products sold in this state
76	76	during each reporting period;
77	77	(2) the volume of vapor products, including the
78	78	constituent parts of vapor products, purchased from every source
79	79	during each reporting period;
80	80	(3) all sales and use taxes, and any money represented
81	81	to be sales or use tax, collected during each reporting period; and
82	82	(4) any other information required by the comptroller.
83	83	Sec. 164.0007. DISPOSITION OF PROCEEDS. The comptroller
84	84	shall deposit the proceeds from taxes imposed under this chapter to
85	85	the credit of the general revenue fund.
86	86	Sec. 164.0008. DISCIPLINARY ACTION FOR CERTAIN VIOLATIONS.
87	87	(a) A person required to file a report under Section 151.403 who is
88	88	also required to collect or pay a tax under this chapter is subject
89	89	to disciplinary action as provided by this section if:
90	90	(1) an agent or employee of the person commits an
91	91	offense under Subchapter H, Chapter 161, Health and Safety Code;
92	92	and
93	93	(2) the person, with criminal negligence, failed to
94	94	prevent the offense through adequate supervision and training of
95	95	the agent or employee.
96	96	(b) If the comptroller finds, after notice and an
97	97	opportunity for a hearing, that a person described by Subsection
98	98	(a) has violated Subchapter H, Chapter 161, Health and Safety Code,
99	99	at a place of business for which a sales tax permit under Chapter
100	100	151 has been issued, the comptroller may suspend the permit for that
101	101	place of business or administratively assess a fine as follows:
102	102	(1) if the person has not been found to have violated
103	103	Subchapter H, Chapter 161, Health and Safety Code, at that place of
104	104	business during the preceding 12 months, the comptroller may
105	105	require the person to pay a fine in an amount not to exceed $500;
106	106	(2) if the person has been found to have violated
107	107	Subchapter H, Chapter 161, Health and Safety Code, at that place of
108	108	business once during the preceding 12 months, the comptroller may
109	109	require the person to pay a fine in an amount not to exceed $750; and
110	110	(3) if the person has been found to have violated
111	111	Subchapter H, Chapter 161, Health and Safety Code, at that place of
112	112	business at least twice during the preceding 12 months, the
113	113	comptroller may require the person to pay a fine in an amount not to
114	114	exceed $1,000 or suspend the sales tax permit for that place of
115	115	business for not more than three days.
116	116	(c) Except as provided by Section 164.0009, if the person
117	117	has been found to have violated Section 161.082(b), Health and
118	118	Safety Code, on four or more previous and separate occasions at the
119	119	same place of business during the preceding 24 months, the
120	120	comptroller shall revoke the sales tax permit for that place of
121	121	business.
122	122	(d) A person whose sales tax permit has been revoked under
123	123	this section may not apply for a sales tax permit under Chapter 151
124	124	for the same place of business before the expiration of six months
125	125	after the effective date of the revocation.
126	126	Sec. 164.0009. ACTIONS OF EMPLOYEE. (a) For purposes of
127	127	Subchapter H, Chapter 161, Health and Safety Code, and the
128	128	provisions of this code relating to the sale or delivery of
129	129	e-cigarettes to a minor, the comptroller may suspend a sales tax
130	130	permit of a person required to file a report under Section 151.403
131	131	who is also required to collect or pay a tax under this chapter but
132	132	may not revoke the permit under Section 164.0008 if the comptroller
133	133	finds that:
134	134	(1) the person has not violated Section 161.082(b),
135	135	Health and Safety Code, more than four times at the place of
136	136	business for which the permit is issued in the 24-month period
137	137	preceding the violation in question;
138	138	(2) the person requires its employees to attend a
139	139	comptroller-approved seller training program;
140	140	(3) the employee has actually attended a
141	141	comptroller-approved seller training program; and
142	142	(4) the person has not directly or indirectly
143	143	encouraged the employee to violate the law.
144	144	(b) The comptroller shall adopt rules or policies
145	145	establishing the minimum requirements for approved seller training
146	146	programs. On application, the comptroller shall approve seller
147	147	training programs meeting the requirements that are sponsored
148	148	privately or by public community colleges. The comptroller may
149	149	charge an application fee in an amount necessary to defray the
150	150	expense of processing the application.
151	151	(c) The comptroller may approve under this section a seller
152	152	training program sponsored by a person described by Subsection (a)
153	153	for the purpose of training the person's employees without regard
154	154	to whether the employees are located at the same place of business.
155	155	This subsection applies only to a person who employs at least 100
156	156	persons at any one time during the permit year who sell
157	157	e-cigarettes.
158	158	SECTION 2. This Act takes effect September 1, 2019.