Texas 2019 - 86th Regular

Texas Senate Bill SB70 Compare Versions

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

Old	New	Differences
1	1	86R2765 BEF-F
2	2	By: Nelson S.B. No. 70
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a single local use tax rate as an alternative to
8	8	combined local use tax rates for computing the amount of local use
9	9	taxes remote sellers are required to collect and to the allocation
10	10	of tax revenue collected at that rate.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The purpose of this Act is to provide an
13	13	optional, simplified means of computing the amount of local use tax
14	14	remote sellers are required to collect following the decision of
15	15	the United States Supreme Court in South Dakota v. Wayfair, Inc.,
16	16	138 S. Ct. 2080 (2018).
17	17	SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended
18	18	by adding Section 151.0595 to read as follows:
19	19	Sec. 151.0595. SINGLE LOCAL TAX RATE FOR REMOTE SELLERS.
20	20	(a) In this section, "remote seller" means a seller whose only
21	21	activities in this state are described by Section 151.107(a)(4) or
22	22	(5).
23	23	(b) A remote seller required to collect and remit one or
24	24	more local use taxes in connection with a sale of a taxable item
25	25	made by the remote seller shall compute the amount to collect and
26	26	remit using:
27	27	(1) the combined rate of all applicable local use
28	28	taxes authorized or governed by Title 3; or
29	29	(2) at the remote seller's election, the single local
30	30	use tax rate published in the Texas Register as required by
31	31	Subsection (d).
32	32	(c) A remote seller who elects under Subsection (b)(2) to
33	33	use the single local use tax rate shall notify the comptroller of
34	34	the election before using that rate. The election applies to all
35	35	sales of taxable items made by the remote seller unless the remote
36	36	seller revokes the election by notifying the comptroller. Notice to
37	37	the comptroller under this subsection must be in the form and manner
38	38	provided by the comptroller.
39	39	(d) The single local use tax rate effective in a calendar
40	40	year is equal to the estimated average rate of local sales and use
41	41	taxes imposed in this state during the preceding state fiscal year,
42	42	as determined under Subsection (e). Before the beginning of a
43	43	calendar year, the comptroller shall publish in the Texas Register
44	44	notice of the single local use tax rate that will be in effect for
45	45	that calendar year.
46	46	(e) As soon as practicable after the end of a state fiscal
47	47	year, the comptroller shall determine the estimated average rate of
48	48	local sales and use taxes imposed in this state during the preceding
49	49	state fiscal year by:
50	50	(1) dividing the total amount of net local sales and
51	51	use taxes remitted to the comptroller under this section and Title 3
52	52	during that state fiscal year by the total amount of net state sales
53	53	and use taxes remitted to the comptroller under this chapter during
54	54	that state fiscal year;
55	55	(2) multiplying the amount computed under Subdivision
56	56	(1) by the rate provided by Section 151.051; and
57	57	(3) rounding the amount computed under Subdivision (2)
58	58	to the nearest .0025.
59	59	(f) Notwithstanding Section 111.104(b), a purchaser may
60	60	annually apply for a refund of any amount by which the amount of use
61	61	tax computed using the rate described by Subsection (b)(2) and paid
62	62	by the purchaser exceeds the amount the purchaser would have paid if
63	63	that tax had been computed using the rate described by Subsection
64	64	(b)(1). The comptroller may adopt rules regarding the procedure
65	65	and proof required for the refund.
66	66	(g) A person storing, using, or consuming in this state a
67	67	taxable item purchased from a remote seller is not liable for any
68	68	additional amount of local use tax authorized or governed by Title 3
69	69	if the remote seller elects under Subsection (b)(2) to use the
70	70	single local use tax rate and the person pays to the remote seller
71	71	the amount of local use tax computed on the purchase using the
72	72	single local use tax rate.
73	73	(h) The comptroller shall administer, collect, and enforce
74	74	local use taxes computed using the single local use tax rate.
75	75	(i) The comptroller shall apportion and distribute revenue
76	76	from local use taxes computed using the single local use tax rate as
77	77	provided by Section 403.107, Government Code.
78	78	(j) The comptroller may adopt rules to administer this
79	79	section.
80	80	SECTION 3. Section 403.107, Government Code, is reenacted
81	81	and amended to read as follows:
82	82	Sec. 403.107. SINGLE LOCAL USE TAXES COLLECTED BY REMOTE
83	83	SELLERS [SALES AND USE TAX FEES]. (a) The comptroller shall
84	84	deposit revenue remitted to the comptroller from taxes computed
85	85	using the single local use tax rate under Section 151.0595(b)(2)
86	86	[fees imposed under Section 151.059], Tax Code, in the state
87	87	treasury and shall keep records of the amount of money deposited
88	88	[collected] for each reporting period. Money deposited under this
89	89	subsection [Such fees] shall be held in trust for the benefit of
90	90	eligible taxing units, as determined under Subsection (b) [in the
91	91	suspense account of each eligible taxing unit]. The comptroller
92	92	shall distribute money held in trust [in the suspense accounts]
93	93	under this section to each eligible taxing unit in the amount and
94	94	manner provided by [federal law or] this section.
95	95	(b) A local taxing unit is an eligible taxing unit for
96	96	purposes of [to receive funds under] this section if it has adopted
97	97	a sales and use tax authorized or governed by Title 3, Tax Code
98	98	[under Chapter 321, Chapter 322, or Chapter 323, Tax Code, or has
99	99	adopted a local sales and use tax governed in part by any provision
100	100	of those chapters].
101	101	(c) Subject to Subsection (d), the [The] comptroller shall
102	102	transmit to each eligible taxing unit's treasurer, or to the
103	103	officer performing the functions of that office, on a monthly
104	104	[quarterly] basis, the taxing unit's share of money held in trust
105	105	under Subsection (a) [the fees remitted to the comptroller],
106	106	together with the pro rata share of any penalty or interest on
107	107	delinquent taxes computed using the single local use tax rate
108	108	[fees] that may be collected. Before transmitting the funds, the
109	109	comptroller shall deduct two percent of [the amount allocated to]
110	110	each taxing unit's share [unit] as a charge by the state for its
111	111	services under this section and deposit that amount into the state
112	112	treasury to the credit of the comptroller's operating fund.
113	113	Interest earned on all deposits made in the state treasury under
114	114	this section shall be credited to the general revenue fund.
115	115	(d) The comptroller shall retain [in the suspense account
116	116	for a taxing unit] a portion of each eligible [the] taxing unit's
117	117	share of money held in trust under Subsection (a) [the fees
118	118	collected], not to exceed five percent of the amount eligible to be
119	119	transmitted [remitted] to the taxing unit under Subsection (c).
120	120	From the amounts retained [in a taxing unit's suspense account],
121	121	the comptroller may make refunds for overpayments of taxes computed
122	122	using the single local use tax rate, make refunds to purchasers as
123	123	provided by Section 151.0595(f), Tax Code, and [to the account and
124	124	to] redeem dishonored checks and drafts deposited under Subsection
125	125	(a) [to the credit of the account].
126	126	(e) The [Unless another method is required by federal law,
127	127	the] comptroller shall compute for each calendar month [quarter]
128	128	the percentage of total sales and use tax allocations made pursuant
129	129	to Title 3, [of the] Tax Code, including any local sales and use
130	130	taxes governed by any provision of Title 3, [of the] Tax Code, to
131	131	each eligible taxing unit. The comptroller shall determine each
132	132	eligible taxing unit's share of the money held in trust from
133	133	deposits under Subsection (a) for that month by applying the
134	134	percentage computed under this subsection for the eligible taxing
135	135	unit [and shall apply that percentage] to the total amount held in
136	136	trust from deposits for that month [fees collected under Section
137	137	151.059, Tax Code, and allocated to eligible taxing units in that
138	138	quarter].
139	139	(f) The comptroller may combine an eligible taxing unit's
140	140	share of the money held in trust under Subsection (a) [fees remitted
141	141	or collected under Section 151.059, Tax Code, a suspense account
142	142	under this section, or an allocation made under this section] with
143	143	other money [trust or suspense accounts] held for that taxing unit
144	144	[or other allocations made to that taxing unit under Title 3 of the
145	145	Tax Code].
146	146	(g) The comptroller may adopt rules to administer this
147	147	section.
148	148	SECTION 4. Sections 151.059 and 151.107(c), Tax Code, as
149	149	added by Chapter 291 (H.B. 2215), Acts of the 71st Legislature,
150	150	Regular Session, 1989, are repealed.
151	151	SECTION 5. The changes in law made by this Act do not affect
152	152	tax liability accruing before the effective date of this Act. That
153	153	liability continues in effect as if this Act had not been enacted,
154	154	and the former law is continued in effect for the collection of
155	155	taxes due and for civil and criminal enforcement of the liability
156	156	for those taxes.
157	157	SECTION 6. (a) Not later than October 1, 2019, the
158	158	comptroller shall adopt any rules necessary to implement this Act.
159	159	(b) This Act does not require a remote seller, as defined by
160	160	Section 151.0595, Tax Code, as added by this Act, to collect local
161	161	use taxes on sales of taxable items made before October 1, 2019.
162	162	SECTION 7. This Act takes effect September 1, 2019.