By: Miles S.B. No. 2253
A BILL TO BE ENTITLED
AN ACT
relating to fees on persons who sell or purchase e-cigarettes,
vapor products, or cannibidiol products to benefit the designated
trauma facility and emergency medical services account; imposing
fees; requiring occupational permits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 780.003(b), Health and Safety Code, is
amended to read as follows:
(b) The account is composed of money deposited to the credit
of the account under Sections 164.0008 and 165.0008, Tax Code,
under Sections 542.406 and 707.008, Transportation Code, and under
Section 780.002 of this code.
SECTION 2. Subtitle E, Title 2, Tax Code, is amended by
adding Chapters 164 and 165 to read as follows:
CHAPTER 164. E-CIGARETTE AND VAPOR PRODUCT FEES
Sec. 164.0001. DEFINITIONS. In this chapter:
(1) "Consumer" means a person who purchases an
e-cigarette or vapor product for personal use or consumption.
(2) "E-cigarette" has the meaning assigned by Section
161.081, Health and Safety Code.
(3) "Retailer" means a person who sells e-cigarettes or
vapor products to consumers.
(4) "Vapor product" means a consumable nicotine liquid
solution or other material containing nicotine suitable for use in
an e-cigarette.
(5) "Wholesaler" means a person who sells or
distributes e-cigarettes or vapor products to retailers.
Sec. 164.0002. WHOLESALER PERMIT; FEE. (a) A person may
not engage in business as a wholesaler in this state unless the
person has applied for and received an e-cigarette wholesaler
permit from the comptroller.
(b) Each wholesaler shall obtain a permit for each place of
business owned or operated by the wholesaler.
(c) The fee for a permit is $500 per year.
Sec. 164.0003. RETAILER PERMIT; FEE. (a) A person may not
engage in business as a retailer in this state unless the person has
applied for and received an e-cigarette retailer permit from the
comptroller.
(b) Each retailer shall obtain a permit for each place of
business owned or operated by the retailer.
(c) The fee for a permit is $300 per year.
Sec. 164.0004. CONSUMER FEE. (a) A fee is imposed on each
sale of an e-cigarette or vapor product to a consumer in this state.
(b) The amount of the fee is:
(1) $1 if the sum of the sales prices of all
e-cigarettes and vapor products sold together at the same time is
not more than $25; or
(2) $2 if the sum of the sales prices of all
e-cigarettes and vapor products sold together at the same time is
more than $25.
(c) A retailer who makes a sale subject to the consumer fee
imposed by this section shall add the amount of the fee to the sales
price, and when the amount of the fee is added:
(1) it becomes a part of the sales price;
(2) it is a debt of the consumer to the retailer until
paid; and
(3) if unpaid, it is recoverable at law in the same
manner as the originl sales price.
Sec. 164.0005. APPLICATION OF OTHER PROVISIONS OF CODE.
(a) Except as otherwise provided by this chapter, the provisions
of Subchapter D, Chapter 154, apply to a wholesaler or retailer
permit under this chapter in the same manner as a wholesaler or
retailer permit under that subchapter.
(b) Except as otherwise provided by this chapter, the
consumer fee under this chapter is administered, imposed,
collected, and enforced in the same manner as the sales tax under
Subchapter C, Chapter 151 is administered, imposed, collected, and
enforced.
Sec. 164.0006. REPORTS. (a) A retailer required to file a
report under Section 151.403 who is also required to collect the
consumer fee under this chapter shall file with the comptroller a
report stating the information required by Section 164.0007.
(b) The report required by this section for a reporting
period is due on the same date that the fee payment for the period is
due.
Sec. 164.0007. RECORDS. A person required to file a report
under Section 151.403 who is also required to collect the consumer
fee under this chapter shall keep a complete record of:
(1) each transaction in which at least one e-cigarette
or vapor product was sold by the retailer during the reporting
period and the sales prices of all e-cigarettes and vapor products
sold in each transaction;
(2) all consumer fees, and any money represented to be
consumer fees, collected during each reporting period; and
(3) any other information required by the comptroller.
Sec. 164.0008. DISPOSITION OF PROCEEDS. The comptroller
shall deposit the fees collected under this chapter to the credit of
the designated trauma facility and emergency medical services
account established under Section 780.003, Health and Safety Code.
Sec. 164.0009. RULES. The comptroller shall adopt rules to
implement, administer, and enforce this chapter.
CHAPTER 165. CANNABIDIOL PRODUCT FEES
Sec. 165.0001. DEFINITIONS. In this chapter:
(1) "Cannabidiol product" means a product containing
cannibidiol. The term does not include low-THC cannabis prescribed
in accordance with Chapter 169, Occupations Code.
(2) "Consumer" means a person who purchases a
cannabidiol product for personal use or consumption.
(3) "Retailer" means a person who sells cannabidiol
products to consumers.
(4) "Wholesaler" means a person who sells or
distributes cannabidiol products to retailers.
Sec. 165.0002. WHOLESALER PERMIT; FEE. (a) A person may
not engage in business as a wholesaler in this state unless the
person has applied for and received a cannabidiol product
wholesaler permit from the comptroller.
(b) Each wholesaler shall obtain a permit for each place of
business owned or operated by the wholesaler.
(c) The fee for a permit is $500 per year.
Sec. 165.0003. RETAILER PERMIT; FEE. (a) A person may not
engage in business as a retailer in this state unless the person has
applied for and received a cannabidiol product retailer permit from
the comptroller.
(b) Each retailer shall obtain a permit for each place of
business owned or operated by the retailer.
(c) The fee for a permit is $300 per year.
Sec. 165.0004. CONSUMER FEE. (a) A fee is imposed on each
sale of a cannabidiol product to a consumer in this state.
(b) The amount of the fee is:
(1) $1 if the sum of the sales prices of all cannabidiol
products sold together at the same time is not more than $25; or
(2) $2 if the sum of the sales prices of all cannabidiol
products sold together at the same time is more than $25.
(c) A retailer who makes a sale subject to the consumer fee
imposed by this section shall add the amount of the fee to the sales
price, and when the amount of the fee is added:
(1) it becomes a part of the sales price;
(2) it is a debt of the consumer to the retailer until
paid; and
(3) if unpaid, it is recoverable at law in the same
manner as the original sales price.
Sec. 165.0005. APPLICATION OF OTHER PROVISIONS OF CODE.
(a) Except as otherwise provided by this chapter, the provisions
of Subchapter D, Chapter 154, apply to a wholesaler or retailer
permit under this chapter in the same manner as a wholesaler or
retailer permit under that subchapter.
(b) Except as otherwise provided by this chapter, the
consumer fee under this chapter is administered, imposed,
collected, and enforced in the same manner as the sales tax under
Subchapter C, Chapter 151 is administered, imposed, collected, and
enforced.
Sec. 165.0006. REPORTS. (a) A retailer required to file a
report under Section 151.403 who is also required to collect the
consumer fee under this chapter shall file with the comptroller a
report stating the information required by Section 165.0007.
(b) The report required by this section for a reporting
period is due on the same date that the fee payment for the period is
due.
Sec. 165.0007. RECORDS. A person required to file a report
under Section 151.403 who is also required to collect the consumer
fee under this chapter shall keep a complete record of:
(1) each transaction in which at least one cannabidiol
product was sold by the retailer during the reporting period and the
sales prices of all cannabidiol products sold in each transaction;
(2) all consumer fees, and any money represented to be
consumer fees, collected during each reporting period; and
(3) any other information required by the comptroller.
Sec. 165.0008. DISPOSITION OF PROCEEDS. The comptroller
shall deposit the fees collected under this chapter to the credit of
the designated trauma facility and emergency medical services
account established under Section 780.003, Health and Safety Code.
Sec 165.0009. RULES. The comptroller shall adopt rules to
implement, administer, and enforce this chapter.
SECTION 3. This Act takes effect September 1, 2019.