Texas 2021 - 87th Regular

Texas House Bill HB211 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Thierry, Burrows, Noble, Sanford H.B. No. 211
	1	+	87R19644 SRA-F
	2	+	By: Thierry, Burrows, Noble H.B. No. 211
	3	+	Substitute the following for H.B. No. 211:
	4	+	By: Shine C.S.H.B. No. 211
2	5
3	6
4	7		A BILL TO BE ENTITLED
5	8		AN ACT
6		-	relating to sales and use taxes on e-cigarette vapor products;
7		-	imposing taxes.
	9	+	relating to sales and use taxes on e-cigarette vapor products and
	10	+	alternative nicotine products and the computation of taxes imposed
	11	+	on modified risk tobacco products; imposing taxes; reducing the
	12	+	rates of certain taxes imposed on modified risk tobacco products.
8	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9		-	SECTION 1. The legislature finds that:
10		-	It is in the state's interest to implement consistent and
11		-	effective taxation on nicotine-based consumer products and set
12		-	appropriate tax rates based on the risk associated with the
13		-	different types of new nicotine and tobacco products we see in
14		-	today's marketplace.
15		-	SECTION 2. Subtitle E, Title 2, Tax Code, is amended by
16		-	adding Chapter 164 to read as follows:
17		-	CHAPTER 164. TAX ON E-CIGARETTE VAPOR PRODUCTS
	14	+	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
	15	+	adding Chapters 164 and 164A to read as follows:
	16	+	CHAPTER 164. TAX ON E-CIGARETTE VAPOR PRODUCTS AND ALTERNATIVE
	17	+	NICOTINE PRODUCTS
18	18		Sec. 164.0001. DEFINITIONS. In this chapter:
19		-	(1) "E-cigarette" has the meaning assigned by Section
	19	+	(1) "Alternative nicotine product" means a
	20	+	noncombustible product containing nicotine, but not containing
	21	+	tobacco leaf, that is intended for human consumption, whether
	22	+	chewed, absorbed, dissolved, inhaled, snorted, sniffed, or
	23	+	ingested by any other means. The term does not include an
	24	+	e-cigarette, a vapor product, a product regulated as a drug or
	25	+	device by the United States Food and Drug Administration, or a
	26	+	tobacco product as defined by Section 155.001.
	27	+	(2) "E-cigarette" has the meaning assigned by Section
20	28		161.081, Health and Safety Code.
21		-	(2) "Vapor product" means a consumable nicotine liquid
	29	+	(3) "Vapor product" means a consumable nicotine liquid
22	30		solution or other material containing nicotine suitable for use in
23	31		an e-cigarette.
24	32		Sec. 164.0002. E-CIGARETTE VAPOR PRODUCT SALES TAX. (a) A
25	33		tax is imposed on each sale of a vapor product in this state.
26		-	(b) The tax rate is ~~five~~ cents for each milliliter or
	34	+	(b) The tax rate is seven cents for each milliliter or
27	35		fractional part of a milliliter of vapor product sold.
28	36		(c) The tax imposed under this section is in addition to the
29	37		tax imposed under Subchapter C, Chapter 151. The tax imposed under
30	38		this section does not apply to a sale unless the tax imposed under
31	39		Subchapter C, Chapter 151, applies to the sale.
32	40		Sec. 164.0003. E-CIGARETTE VAPOR PRODUCT USE TAX. (a) A
33	41		tax is imposed on the storage, use, or other consumption in this
34	42		state of a vapor product purchased from a retailer for storage, use,
35	43		or other consumption in this state.
36		-	(b) The tax rate is ~~five~~ cents for each milliliter or
	44	+	(b) The tax rate is seven cents for each milliliter or
37	45		fractional part of a milliliter of vapor product stored, used, or
38	46		otherwise consumed in this state.
39	47		(c) The tax imposed under this section is in addition to the
40	48		tax imposed under Subchapter D, Chapter 151. The tax imposed under
41	49		this section does not apply to the storage, use, or other
42	50		consumption of a vapor product unless the tax imposed under
43	51		Subchapter D, Chapter 151, applies to the storage, use, or other
44	52		consumption.
45		-	Sec. 164.0004. APPLICATION OF OTHER PROVISIONS OF CODE.
	53	+	Sec. 164.0004. ALTERNATIVE NICOTINE PRODUCT SALES TAX. (a)
	54	+	A tax is imposed on each sale of an alternative nicotine product in
	55	+	this state.
	56	+	(b) The tax rate is $1.22 for each ounce or fractional part
	57	+	of an ounce of alternative nicotine product sold.
	58	+	(c) The computation of the tax under this section is based
	59	+	on the net weight of an alternative nicotine product as listed by
	60	+	the manufacturer.
	61	+	(d) The tax imposed under this section is in addition to the
	62	+	tax imposed under Subchapter C, Chapter 151. The tax imposed under
	63	+	this section does not apply to a sale unless the tax imposed under
	64	+	Subchapter C, Chapter 151, applies to the sale.
	65	+	Sec. 164.0005. ALTERNATIVE NICOTINE PRODUCT USE TAX. (a) A
	66	+	tax is imposed on the storage, use, or other consumption in this
	67	+	state of an alternative nicotine product purchased from a retailer
	68	+	for storage, use, or other consumption in this state.
	69	+	(b) The tax rate is $1.22 for each ounce or fractional part
	70	+	of an ounce of alternative nicotine product stored, used, or
	71	+	otherwise consumed in this state.
	72	+	(c) The computation of the tax under this section is based
	73	+	on the net weight of an alternative nicotine product as listed by
	74	+	the manufacturer.
	75	+	(d) The tax imposed under this section is in addition to the
	76	+	tax imposed under Subchapter D, Chapter 151. The tax imposed under
	77	+	this section does not apply to the storage, use, or other
	78	+	consumption of an alternative nicotine product unless the tax
	79	+	imposed under Subchapter D, Chapter 151, applies to the storage,
	80	+	use, or other consumption.
	81	+	Sec. 164.0006. APPLICATION OF OTHER PROVISIONS OF CODE.
46	82		(a) Except as provided by this chapter:
47	83		(1) the taxes imposed under this chapter are
48	84		administered, imposed, collected, and enforced in the same manner
49	85		as the taxes under Chapter 151 are administered, imposed,
50	86		collected, and enforced; and
51	87		(2) the provisions of Chapter 151 applicable to the
52	88		sales tax imposed under Subchapter C, Chapter 151, and the use tax
53	89		imposed under Subchapter D, Chapter 151, apply to the sales and use
54	90		taxes imposed under this chapter.
55	91		(b) A change in the law relating to the taxation of the sale
56		-	or use of a vapor product under Chapter 151 also applies to the
57		-	sales or use tax imposed under this chapter.
58		-	Sec. 164.0005. REPORTS. (a) A person required to file a
	92	+	or use of a vapor product or alternative nicotine product under
	93	+	Chapter 151 also applies to the sales or use tax imposed under this
	94	+	chapter.
	95	+	Sec. 164.0007. REPORTS. (a) A person required to file a
59	96		report under Section 151.403 who is also required to collect or pay
60	97		a tax under this chapter shall file with the comptroller a report
61	98		stating:
62	99		(1) for sales tax purposes, the volume of vapor
63		-	products sold by the seller during the reporting period;
	100	+	products and the net weight of alternative nicotine products sold
	101	+	by the seller during the reporting period;
64	102		(2) for use tax purposes, the volume of vapor products
65		-	sold by the retailer during the reporting period for storage, use,
66		-	or other consumption in this state;
67		-	(3) the volume of vapor products subject to the use tax
68		-	that were acquired during the reporting period for storage, use, or
69		-	other consumption in this state by a purchaser who did not pay the
70		-	tax to a retailer;
	103	+	and the net weight of alternative nicotine products sold by the
	104	+	retailer during the reporting period for storage, use, or other
	105	+	consumption in this state;
	106	+	(3) the volume of vapor products and the net weight of
	107	+	alternative nicotine products subject to the use tax that were
	108	+	acquired during the reporting period for storage, use, or other
	109	+	consumption in this state by a purchaser who did not pay the tax to a
	110	+	retailer;
71	111		(4) the amount of the taxes due under this chapter for
72	112		the reporting period; and
73	113		(5) any other information required by the comptroller.
74	114		(b) The report required by this section for a reporting
75	115		period is due on the same date that the tax payment for the period is
76	116		due.
77		-	Sec. 164.~~0006~~. RECORDS. A person required to file a report
	117	+	Sec. 164.0008. RECORDS. A person required to file a report
78	118		under Section 151.403 who is also required to collect or pay a tax
79	119		under this chapter shall keep a complete record of:
80		-	(1) the volume of vapor products sold in this state
81		-	during each reporting period;
	120	+	(1) the volume of vapor products and the net weight of
	121	+	alternative nicotine products sold in this state during each
	122	+	reporting period;
82	123		(2) the volume of vapor products, including the
83		-	constituent parts of vapor products, purchased from every source
84		-	during each reporting period;
	124	+	constituent parts of vapor products, and the net weight of
	125	+	alternative nicotine products purchased from every source during
	126	+	each reporting period;
85	127		(3) all sales and use taxes, and any money represented
86	128		to be sales or use tax, collected during each reporting period; and
87	129		(4) any other information required by the comptroller.
88		-	Sec. 164.0007. DISPOSITION AND USE OF PROCEEDS. The
89		-	comptroller shall deposit the proceeds from taxes imposed under
90		-	this chapter as follows:
91		-	(1) 20 percent to the credit of an account in the
92		-	general revenue fund administered by the Department of State Health
93		-	Services, which may be appropriated to the department only for the
94		-	purpose of administering youth vaping prevention and awareness
95		-	programs; and
96		-	(2) the remainder to the credit of the general revenue
97		-	fund.
	130	+	Sec. 164.0009. DISPOSITION OF PROCEEDS. The comptroller
	131	+	shall deposit the proceeds from taxes imposed under this chapter in
	132	+	the general revenue fund.
	133	+	CHAPTER 164A. COMPUTATION OF TAX IMPOSED ON CERTAIN PRODUCTS
	134	+	CONTAINING TOBACCO OR NICOTINE
	135	+	Sec. 164A.0001. DEFINITION. In this chapter, "modified
	136	+	risk tobacco product" has the meaning assigned by 21 U.S.C. Section
	137	+	387k(b).
	138	+	Sec. 164A.0002. TAX RATE APPLICABLE TO MODIFIED RISK
	139	+	TOBACCO PRODUCT. The rate of a tax applicable to a modified risk
	140	+	tobacco product for which an order under 21 U.S.C. Section 387k(g)
	141	+	is effective is one-half the rate provided by Section 154.021(b),
	142	+	155.021(b), 155.0211(b) or (c), 164.0002(b), 164.0003(b),
	143	+	164.0004(b), or 164.0005(b) that would otherwise apply to the
	144	+	product, notwithstanding the rates specified by those sections.
	145	+	Sec. 164A.0003. RULES. The comptroller may adopt rules to
	146	+	implement this chapter.
	147	+	SECTION 2. The change in law made by this Act does not
	148	+	affect tax liability accruing before the effective date of this
	149	+	Act. That liability continues in effect as if this Act had not been
	150	+	enacted, and the former law is continued in effect for the
	151	+	collection of taxes due and for civil and criminal enforcement of
	152	+	the liability for those taxes.
98	153		SECTION 3. This Act takes effect September 1, 2021.