Texas 2019 - 86th Regular

Texas Senate Bill SB890 Compare Versions

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

Old	New	Differences
1	1	86R9063 BEF-F
2	2	By: Nelson S.B. No. 890
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the administration and collection of sales and use
8	8	taxes applicable to sales involving marketplace providers.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 151.008(b), Tax Code, is amended to read
11	11	as follows:
12	12	(b) "Seller" and "retailer" include:
13	13	(1) a person in the business of making sales at auction
14	14	of tangible personal property owned by the person or by another;
15	15	(2) a person who makes more than two sales of taxable
16	16	items during a 12-month period, including sales made in the
17	17	capacity of an assignee for the benefit of creditors or receiver or
18	18	trustee in bankruptcy;
19	19	(3) a person regarded by the comptroller as a seller or
20	20	retailer under Section 151.024;
21	21	(4) a hotel, motel, or owner or lessor of an office or
22	22	residential building or development that contracts and pays for
23	23	telecommunications services for resale to guests or tenants;
24	24	(5) a person who engages in regular or systematic
25	25	solicitation of sales of taxable items in this state by the
26	26	distribution of catalogs, periodicals, advertising flyers, or
27	27	other advertising, by means of print, radio, or television media,
28	28	or by mail, telegraphy, telephone, computer data base, cable,
29	29	optic, microwave, or other communication system for the purpose of
30	30	effecting sales of taxable items; [and]
31	31	(6) a person who, under an agreement with another
32	32	person, is:
33	33	(A) entrusted with possession of tangible
34	34	personal property with respect to which the other person has title
35	35	or another ownership interest; and
36	36	(B) authorized to sell, lease, or rent the
37	37	property without additional action by the person having title to or
38	38	another ownership interest in the property; and
39	39	(7) a person who is a marketplace provider under
40	40	Section 151.0242.
41	41	SECTION 2. Subchapter B, Chapter 151, Tax Code, is amended
42	42	by adding Section 151.0242 to read as follows:
43	43	Sec. 151.0242. MARKETPLACE PROVIDERS AND MARKETPLACE
44	44	SELLERS. (a) In this section:
45	45	(1) "Marketplace" means a physical or electronic
46	46	medium through which persons other than the owner or operator of the
47	47	medium make sales of taxable items. The term includes a store,
48	48	Internet website, software application, or catalog.
49	49	(2) "Marketplace provider" means a person who owns or
50	50	operates a marketplace and directly or indirectly processes sales
51	51	or payments for marketplace sellers.
52	52	(3) "Marketplace seller" means a seller, other than
53	53	the marketplace provider, who makes a sale of a taxable item through
54	54	a marketplace.
55	55	(b) Except as otherwise provided by this section, a
56	56	marketplace provider has the rights and duties of a seller or
57	57	retailer under this chapter with respect to sales made through the
58	58	marketplace.
59	59	(c) A marketplace provider shall:
60	60	(1) certify to each marketplace seller that the
61	61	marketplace provider assumes the rights and duties of a seller or
62	62	retailer under this chapter with respect to sales made by the
63	63	marketplace seller through the marketplace;
64	64	(2) report under Subchapter I all sales made through
65	65	the marketplace; and
66	66	(3) collect in the manner provided by Subchapters C
67	67	and D and remit the taxes imposed under this chapter on sales of
68	68	taxable items made through the marketplace.
69	69	(d) A marketplace seller who in good faith accepts a
70	70	marketplace provider's certification under Subsection (c)(1) shall
71	71	exclude sales made through the marketplace from the marketplace
72	72	seller's report under Subchapter I, notwithstanding Section
73	73	151.406.
74	74	(e) A marketplace seller shall retain records for all
75	75	marketplace sales as required by Section 151.025.
76	76	(f) A marketplace seller shall furnish to the marketplace
77	77	provider information that is required to correctly collect and
78	78	remit taxes imposed under this chapter. The information may
79	79	include a certification of taxability that an item being sold is a
80	80	taxable item, is not a taxable item, or is exempt from taxation.
81	81	(g) Except as provided by Subsection (h), a marketplace
82	82	provider is not liable for failure to collect and remit the correct
83	83	amount of taxes imposed under this chapter if the marketplace
84	84	provider demonstrates that the failure resulted from the
85	85	marketplace provider's good faith reliance on incorrect
86	86	information provided by the marketplace seller. The marketplace
87	87	seller is liable for a deficiency resulting from incorrect
88	88	information provided by the marketplace seller.
89	89	(h) A marketplace provider and marketplace seller that are
90	90	affiliates or associates, as defined by Section 1.002, Business
91	91	Organizations Code, are jointly and severally liable for a
92	92	deficiency resulting from a sale made by the marketplace seller
93	93	through the marketplace.
94	94	(i) This section does not affect the tax liability of a
95	95	purchaser under Section 151.052 or 151.102.
96	96	(j) A court may not certify an action brought against a
97	97	marketplace provider concerning this section as a class action.
98	98	(k) The comptroller may adopt rules and forms to implement
99	99	this section and by rule except certain small marketplace providers
100	100	from some or all of the requirements of this section.
101	101	SECTION 3. Section 321.203, Tax Code, is amended by adding
102	102	Subsection (e-1) to read as follows:
103	103	(e-1) Notwithstanding any other provision of this section,
104	104	a sale of a taxable item made by a marketplace seller through a
105	105	marketplace as provided by Section 151.0242 is consummated at the
106	106	location in this state to which the item is shipped or delivered or
107	107	at which possession is taken by the purchaser.
108	108	SECTION 4. Section 323.203, Tax Code, is amended by adding
109	109	Subsection (e-1) to read as follows:
110	110	(e-1) Notwithstanding any other provision of this section,
111	111	a sale of a taxable item made by a marketplace seller through a
112	112	marketplace as provided by Section 151.0242 is consummated at the
113	113	location in this state to which the item is shipped or delivered or
114	114	at which possession is taken by the purchaser.
115	115	SECTION 5. The changes in law made by this Act do not affect
116	116	tax liability accruing before the effective date of this Act. That
117	117	liability continues in effect as if this Act had not been enacted,
118	118	and the former law is continued in effect for the collection of
119	119	taxes due and for civil and criminal enforcement of the liability
120	120	for those taxes.
121	121	SECTION 6. This Act takes effect September 1, 2019.