| 1 | 1 | | 87R10543 SRA-D |
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| 2 | 2 | | By: Rodriguez H.B. No. 4013 |
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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 a reduction in the amount of sales and use tax |
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| 8 | 8 | | collections that certain taxpayers who employ tipped employees are |
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| 9 | 9 | | required to remit to the comptroller. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended |
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| 12 | 12 | | by adding Section 151.4245 to read as follows: |
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| 13 | 13 | | Sec. 151.4245. DISCOUNT FOR CERTAIN TAXPAYERS EMPLOYING |
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| 14 | 14 | | TIPPED EMPLOYEES. (a) In this section, "tipped employee" has the |
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| 15 | 15 | | meaning assigned by Section 62.052(b), Labor Code. |
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| 16 | 16 | | (b) A taxpayer may deduct and withhold 1.25 percent of the |
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| 17 | 17 | | amount of tax liability for a quarter or month in which a payment is |
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| 18 | 18 | | made if: |
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| 19 | 19 | | (1) at least half of the taxpayer's employees are |
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| 20 | 20 | | tipped employees; and |
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| 21 | 21 | | (2) the taxpayer pays each tipped employee a cash wage |
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| 22 | 22 | | in an amount that is not less than the federal minimum wage under |
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| 23 | 23 | | Section 6, Fair Labor Standards Act of 1938 (29 U.S.C. Section 206), |
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| 24 | 24 | | for an employee who is not a tipped employee. |
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| 25 | 25 | | (c) In order to qualify for the deduction under Subsection |
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| 26 | 26 | | (b), the taxpayer shall provide to the comptroller paystubs or |
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| 27 | 27 | | other documentation showing that the taxpayer meets the |
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| 28 | 28 | | requirements of Subsection (b). |
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| 29 | 29 | | SECTION 2. The change in law made by this Act does not |
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| 30 | 30 | | affect tax liability accruing before the effective date of this |
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| 31 | 31 | | Act. That liability continues in effect as if this Act had not been |
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| 32 | 32 | | enacted, and the former law is continued in effect for the |
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| 33 | 33 | | collection of taxes due and for civil and criminal enforcement of |
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| 34 | 34 | | the liability for those taxes. |
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| 35 | 35 | | SECTION 3. This Act takes effect October 1, 2021. |
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