Texas 2021 - 87th Regular

Texas House Bill HB3538 Compare Versions

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

Old	New	Differences
1	1	87R7375 BEF-F
2	2	By: Shine H.B. No. 3538
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to local sales and use tax administration.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 321.002(a)(3), Tax Code, is amended to
10	10	read as follows:
11	11	(3)(A) "Place of business of the retailer" means an
12	12	established outlet, office, or location operated by the retailer,
13	13	or operated by the retailer's agent or employee, for the purpose of
14	14	receiving orders, regardless of the method by which orders are
15	15	transmitted or received, for taxable items and includes any
16	16	location at which three or more orders are received by the retailer
17	17	during a calendar year. A warehouse, storage yard, or
18	18	manufacturing plant is not a "place of business of the retailer"
19	19	unless at least three orders are received by the retailer during the
20	20	calendar year at the warehouse, storage yard, or manufacturing
21	21	plant.
22	22	(B) An outlet, office, facility, or any location
23	23	that contracts with a retail or commercial business to process for
24	24	that business invoices, purchase orders, bills of lading, or other
25	25	equivalent records onto which sales tax is added, including an
26	26	office operated for the purpose of buying and selling taxable goods
27	27	to be used or consumed by the retail or commercial business, is not
28	28	a "place of business of the retailer" if the comptroller determines
29	29	that the outlet, office, facility, or location functions or exists
30	30	to avoid the tax legally due under this chapter or exists solely to
31	31	rebate a portion of the tax imposed by this chapter to the
32	32	contracting business. An outlet, office, facility, or location
33	33	does not exist to avoid the tax legally due under this chapter or
34	34	solely to rebate a portion of the tax imposed by this chapter if the
35	35	outlet, office, facility, or location provides significant
36	36	business services, beyond processing invoices, to the contracting
37	37	business, including logistics management, purchasing, inventory
38	38	control, or other vital business services.
39	39	(C) Notwithstanding any other provision of this
40	40	subdivision, a kiosk is not a "place of business of the retailer."
41	41	In this subdivision, "kiosk" means a small stand-alone area or
42	42	structure that:
43	43	(i) is used solely to display merchandise
44	44	or to submit orders for taxable items from a data entry device, or
45	45	both;
46	46	(ii) is located entirely within a location
47	47	that is a place of business of another retailer, such as a
48	48	department store or shopping mall; and
49	49	(iii) at which taxable items are not
50	50	available for immediate delivery to a customer.
51	51	SECTION 2. Section 321.203, Tax Code, is amended by
52	52	amending Subsections (b) and (e-1) and adding Subsection (o) to
53	53	read as follows:
54	54	(b) If a retailer has only one place of business in this
55	55	state, all of the retailer's retail sales of taxable items,
56	56	regardless of the method by which orders for the taxable items are
57	57	transmitted or received, are consummated at that place of business
58	58	except as provided by Subsection (e) or (o).
59	59	(e-1) Notwithstanding any other provision of this section,
60	60	a sale of a taxable item made [by a marketplace seller] through a
61	61	marketplace as provided by Section 151.0242 is consummated at the
62	62	location in this state to which the item is shipped or delivered or
63	63	at which possession is taken by the purchaser.
64	64	(o) The sale of a taxable item purchased by the retailer
65	65	from a related entity, including a related entity acting as a
66	66	third-party drop shipper of taxable items, is consummated at the
67	67	place of business of the related entity where the order for the
68	68	taxable item is fulfilled or from which the taxable item is shipped
69	69	if:
70	70	(1) the retailer has only one place of business in this
71	71	state;
72	72	(2) the retailer purchases the taxable item from the
73	73	related entity using a resale certificate; and
74	74	(3) the order for the taxable item is fulfilled at, or
75	75	the taxable item is shipped from, a place of business of the related
76	76	entity in this state that would constitute a place of business of
77	77	the retailer if the related entity were the retailer.
78	78	SECTION 3. Section 323.203, Tax Code, is amended by
79	79	amending Subsections (b) and (e-1) and adding Subsection (n) to
80	80	read as follows:
81	81	(b) If a retailer has only one place of business in this
82	82	state, all of the retailer's retail sales of taxable items,
83	83	regardless of the method by which orders for the taxable items are
84	84	transmitted or received, are consummated at that place of business
85	85	except as provided by Subsection (e) or (n).
86	86	(e-1) Notwithstanding any other provision of this section,
87	87	a sale of a taxable item made [by a marketplace seller] through a
88	88	marketplace as provided by Section 151.0242 is consummated at the
89	89	location in this state to which the item is shipped or delivered or
90	90	at which possession is taken by the purchaser.
91	91	(n) The sale of a taxable item purchased by the retailer
92	92	from a related entity, including a related entity acting as a
93	93	third-party drop shipper of taxable items, is consummated at the
94	94	place of business of the related entity where the order for the
95	95	taxable item is fulfilled or from which the taxable item is shipped
96	96	if:
97	97	(1) the retailer has only one place of business in this
98	98	state;
99	99	(2) the retailer purchases the taxable item from the
100	100	related entity using a resale certificate; and
101	101	(3) the order for the taxable item is fulfilled at, or
102	102	the taxable item is shipped from, a place of business of the related
103	103	entity in this state that would constitute a place of business of
104	104	the retailer if the related entity were the retailer.
105	105	SECTION 4. The changes in law made by this Act do not affect
106	106	tax liability accruing before the effective date of this Act. That
107	107	liability continues in effect as if this Act had not been enacted,
108	108	and the former law is continued in effect for the collection of
109	109	taxes due and for civil and criminal enforcement of the liability
110	110	for those taxes.
111	111	SECTION 5. This Act takes effect January 1, 2022.