| 1 | 1 | | 87R11291 CJC-F |
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| 2 | 2 | | By: Burrows H.B. No. 4114 |
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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 retention of state sales tax revenue collected by |
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| 8 | 8 | | certain retailers for a limited period. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended |
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| 11 | 11 | | by adding Section 151.433 to read as follows: |
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| 12 | 12 | | Sec. 151.433. AUTHORIZATION FOR CERTAIN RETAILERS TO RETAIN |
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| 13 | 13 | | STATE SALES TAX COLLECTIONS FOR A LIMITED PERIOD. (a) In this |
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| 14 | 14 | | section, "qualifying retailer" means a retailer that: |
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| 15 | 15 | | (1) collects and remits to the comptroller sales taxes |
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| 16 | 16 | | imposed on the sale of: |
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| 17 | 17 | | (A) a ticket granting admission to a film; and |
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| 18 | 18 | | (B) concessions sold on-site at the retailer's |
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| 19 | 19 | | place of business; and |
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| 20 | 20 | | (2) was at any time in 2020 required to cease |
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| 21 | 21 | | operations as a result of an order, proclamation, or other |
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| 22 | 22 | | instrument issued by the governor, another official of this state, |
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| 23 | 23 | | or the governing body or an official of a political subdivision of |
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| 24 | 24 | | this state in response to a disaster. |
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| 25 | 25 | | (b) Notwithstanding any other law, a qualifying retailer is |
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| 26 | 26 | | not required to remit to the comptroller and may retain the taxes |
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| 27 | 27 | | imposed under this chapter and collected by the qualifying retailer |
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| 28 | 28 | | on sales made during the period beginning September 1, 2021, and |
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| 29 | 29 | | ending August 31, 2023. |
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| 30 | 30 | | (c) A qualifying retailer must file with the comptroller a |
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| 31 | 31 | | tax report required by this chapter that shows the amount of taxes |
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| 32 | 32 | | imposed by this chapter and collected and retained as authorized by |
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| 33 | 33 | | this section. |
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| 34 | 34 | | (d) A qualifying retailer shall continue to remit to the |
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| 35 | 35 | | comptroller sales taxes imposed by a political subdivision of this |
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| 36 | 36 | | state and collected on sales with respect to which the qualifying |
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| 37 | 37 | | retailer retains collected taxes as authorized by this section. |
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| 38 | 38 | | (e) At any time during the period described by Subsection |
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| 39 | 39 | | (b), the comptroller may require the qualifying retailer to |
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| 40 | 40 | | demonstrate, in a manner prescribed by the comptroller, that the |
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| 41 | 41 | | qualifying retailer is in compliance with the requirements of this |
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| 42 | 42 | | section. |
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| 43 | 43 | | (f) The comptroller, after written notice and a hearing, may |
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| 44 | 44 | | revoke a qualifying retailer's authority to retain collected taxes |
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| 45 | 45 | | as authorized by this section if the qualifying retailer fails to |
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| 46 | 46 | | comply with this chapter or a rule adopted under this chapter. The |
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| 47 | 47 | | comptroller shall give notice to the qualifying retailer of the |
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| 48 | 48 | | time and place of the hearing on the revocation not later than the |
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| 49 | 49 | | 20th day before the date of the hearing. The notice must state the |
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| 50 | 50 | | reason the comptroller is seeking to revoke the qualifying |
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| 51 | 51 | | retailer's authority to retain collected taxes under this section. |
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| 52 | 52 | | At the hearing, the qualifying retailer must show cause why the |
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| 53 | 53 | | qualifying retailer's authority to retain the collected taxes |
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| 54 | 54 | | should not be revoked. |
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| 55 | 55 | | (g) This section expires January 1, 2024. |
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| 56 | 56 | | SECTION 2. The change in law made by this Act does not |
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| 57 | 57 | | affect tax liability accruing before the effective date of this |
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| 58 | 58 | | Act. That liability continues in effect as if this Act had not been |
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| 59 | 59 | | enacted, and the former law is continued in effect for the |
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| 60 | 60 | | collection of taxes due and for civil and criminal enforcement of |
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| 61 | 61 | | the liability for those taxes. |
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| 62 | 62 | | SECTION 3. This Act takes effect September 1, 2021. |
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