Texas 2021 - 87th Regular

Texas House Bill HB3941 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Guillen, Morales of Maverick H.B. No. 3941
	1	+	87R12074 MLH-D
	2	+	By: Guillen H.B. No. 3941
2	3
3	4
4	5		A BILL TO BE ENTITLED
5	6		AN ACT
6		-	relating to surcharges imposed for the use of a credit card and to
7		-	certain reimbursements and discounts allowed for the collection and
8		-	payment of sales and use taxes.
	7	+	relating to surcharges imposed for the use of a credit card.
9	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	9		SECTION 1. Section 604A.003, Business & Commerce Code, is
11	10		amended to read as follows:
12	11		Sec. 604A.003. CIVIL PENALTY. (a) A person who knowingly
13	12		violates Section 604A.002 [or 604A.0021] is liable to the state for
14	13		a civil penalty in an amount not to exceed $500 for each violation.
15	14		The attorney general or the prosecuting attorney in the county in
16	15		which the violation occurs may bring:
17	16		(1) a suit to recover the civil penalty imposed under
18	17		this section; and
19	18		(2) an action in the name of the state to restrain or
20	19		enjoin a person from violating this chapter.
21	20		(b) Before bringing the action, the attorney general or
22	21		prosecuting attorney shall give the person notice of the person's
23	22		noncompliance and liability for a civil penalty. The notice must:
24	23		(1) contain guidance to assist the person in complying
25	24		with this chapter;
26	25		(2) advise the person of the prohibitions under
27	26		Section [Sections] 604A.002 [and 604A.0021]; and
28	27		(3) state that the person may be liable for a civil
29	28		penalty for a subsequent violation of Section 604A.002 [or
30	29		604A.0021].
31	30		(b-1) If the person complies with Section [Sections]
32	31		604A.002 [and 604A.0021] not later than the 30th day after the date
33	32		of the notice under Subsection (b), the violation is cured and the
34	33		person is not liable for the civil penalty. A person who has
35	34		previously received notice of noncompliance under Subsection (b) is
36	35		not entitled to notice of or the opportunity to cure a subsequent
37	36		violation of Section 604A.002 [or 604A.0021].
38	37		(c) The attorney general or the prosecuting attorney, as
39	38		appropriate, is entitled to recover reasonable expenses incurred in
40	39		obtaining injunctive relief, civil penalties, or both, under this
41	40		section, including reasonable attorney's fees, court costs, and
42	41		investigatory costs.
43		-	SECTION 2. (a) Effective October 1, 2021, Section 151.423,
44		-	Tax Code, is amended to read as follows:
45		-	Sec. 151.423. REIMBURSEMENT TO TAXPAYER FOR TAX
46		-	COLLECTIONS. (a) In this section:
47		-	(1) "Credit card" means a card or equivalent device
48		-	used to make purchases based on the cardholder's promise to pay the
49		-	issuer of the card for the amount of the purchase and any associated
50		-	interest and fees.
51		-	(2) "Credit card sale" means a sale of a taxable item
52		-	paid for by the purchaser using a credit card.
53		-	(b) As reimbursement for the cost of collecting the taxes
54		-	imposed by this chapter, a [A] taxpayer may on a timely return
55		-	deduct and withhold:
56		-	(1) one-half of one percent of the amount of taxes due
57		-	from the taxpayer, other than taxes imposed on credit card sales;
58		-	and
59		-	(2) 2.5 percent of the amount of taxes imposed on
60		-	credit card sales due from the taxpayer [on a timely return as
61		-	reimbursement for the cost of collecting the taxes imposed by this
62		-	chapter].
63		-	(c) The comptroller shall provide a card with each form
64		-	distributed for the collection of taxes under this chapter. The
65		-	card may be inserted by the taxpayer with the tax payment to provide
66		-	for contribution of all or part of the reimbursement provided by
67		-	this section for use as grants under Subchapter M, Chapter 56,
68		-	Education Code. If the taxpayer chooses to contribute the
69		-	reimbursement for the grants, the taxpayer shall include the amount
70		-	of the reimbursement contribution with the tax payment. The
71		-	comptroller shall transfer money contributed under this section for
72		-	grants under Subchapter M, Chapter 56, Education Code, to the
73		-	appropriate fund.
74		-	(b) Effective October 1, 2021, Section 151.424, Tax Code, is
75		-	amended by amending Subsection (a) and adding Subsection (a-1) to
76		-	read as follows:
77		-	(a) A taxpayer who prepays the taxpayer's tax liability of
78		-	taxes described by Section 151.423(b)(1) on the basis of a
79		-	reasonable estimate of the tax liability for a quarter in which a
80		-	prepayment is made or for a month in which a prepayment is made may
81		-	deduct and withhold 1.25 percent of the amount of the prepayment in
82		-	addition to the amount permitted to be deducted and withheld under
83		-	that section [Section 151.423 of this code]. A reasonable estimate
84		-	of the tax liability must be at least 90 percent of that [the] tax
85		-	ultimately due or the amount of that tax paid in the same quarter,
86		-	or month, if a monthly prepayer, in the last preceding year. Failure
87		-	to prepay a reasonable estimate of the tax will result in the loss
88		-	of the entire prepayment discount.
89		-	(a-1) A taxpayer may not deduct or withhold any amount under
90		-	this section of a prepayment of the taxpayer's tax liability for
91		-	taxes described by Section 151.423(b)(2).
92		-	(c) Section 151.423, Tax Code, as amended by this section,
93		-	applies to a tax report due on or after October 1, 2021. A tax
94		-	report due before October 1, 2021, is governed by the law in effect
95		-	on the date the tax report was due, and the former law is continued
96		-	in effect for that purpose.
97		-	(d) Section 151.424, Tax Code, as amended by this section,
98		-	applies to a prepayment of tax liability made on or after October 1,
99		-	2021. A prepayment of tax liability made before October 1, 2021, is
100		-	governed by the law in effect on the date the prepayment was made,
101		-	and the former law is continued in effect for that purpose.
102		-	SECTION 3. Section 604A.0021, Business & Commerce Code, is
	42	+	SECTION 2. Section 604A.0021, Business & Commerce Code, is
103	43		repealed.
104		-	SECTION 4. This Act takes effect September 1, 2021.
	44	+	SECTION 3. This Act takes effect September 1, 2021.