| 1 | 1 | | 87R5764 SMT-F |
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| 2 | 2 | | By: Noble H.B. No. 2626 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the imposition of the use tax on tangible personal |
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| 8 | 8 | | property purchased in another state and transferred to an affiliate |
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| 9 | 9 | | of the purchaser before being brought into this state for storage, |
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| 10 | 10 | | use, or other consumption. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 151.101(a), Tax Code, is amended to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | (a) A tax is imposed on the storage, use, or other |
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| 15 | 15 | | consumption in this state of a taxable item purchased [from a |
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| 16 | 16 | | retailer] for storage, use, or other consumption in this state. |
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| 17 | 17 | | SECTION 2. The heading to Section 151.105, Tax Code, is |
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| 18 | 18 | | amended to read as follows: |
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| 19 | 19 | | Sec. 151.105. IMPORTATION FOR STORAGE, USE, OR CONSUMPTION |
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| 20 | 20 | | PRESUMED; IMPOSITION OF TAX ON IMPORTED PROPERTY. |
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| 21 | 21 | | SECTION 3. Section 151.105, Tax Code, is amended by |
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| 22 | 22 | | amending Subsection (a) and adding Subsections (c) and (d) to read |
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| 23 | 23 | | as follows: |
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| 24 | 24 | | (a) Tangible personal property that is shipped or brought |
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| 25 | 25 | | into this state by a purchaser or by an affiliate of the purchaser |
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| 26 | 26 | | is presumed, in the absence of evidence to the contrary, to have |
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| 27 | 27 | | been purchased [from a retailer] for storage, use, or consumption |
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| 28 | 28 | | in this state. |
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| 29 | 29 | | (c) The tax under Section 151.101 is imposed on the sales |
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| 30 | 30 | | price paid by the purchaser of tangible personal property that is |
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| 31 | 31 | | shipped or brought into this state by an affiliate of the purchaser. |
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| 32 | 32 | | (d) For purposes of this section, "affiliate" means an |
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| 33 | 33 | | entity that would be classified as a member of the purchaser's |
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| 34 | 34 | | affiliated group under Section 171.0001. |
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| 35 | 35 | | SECTION 4. The change in law made by this Act does not |
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| 36 | 36 | | affect tax liability accruing before the effective date of this |
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| 37 | 37 | | Act. That liability continues in effect as if this Act had not been |
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| 38 | 38 | | enacted, and the former law is continued in effect for the |
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| 39 | 39 | | collection of taxes due and for civil and criminal enforcement of |
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| 40 | 40 | | the liability for those taxes. |
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| 41 | 41 | | SECTION 5. This Act takes effect September 1, 2021. |
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