Texas 2021 - 87th Regular

Texas Senate Bill SB1712 Compare Versions

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

Old	New	Differences
1	1	87R12432 SRA-F
2	2	By: Springer S.B. No. 1712
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to sales and use taxes on e-cigarettes and nicotine
8	8	products; imposing taxes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
11	11	adding Chapter 164 to read as follows:
12	12	CHAPTER 164. TAX ON E-CIGARETTES AND NICOTINE PRODUCTS
13	13	Sec. 164.0001. DEFINITIONS. In this chapter:
14	14	(1) "E-cigarette" has the meaning assigned by Section
15	15	161.081, Health and Safety Code.
16	16	(2) "Nicotine product" means an item that contains
17	17	nicotine and is not taxed under Chapter 154 or 155.
18	18	Sec. 164.0002. E-CIGARETTE AND NICOTINE PRODUCT SALES TAX.
19	19	(a) A tax is imposed on each sale of an e-cigarette or nicotine
20	20	product in this state.
21	21	(b) The tax rate is 10 percent of the sales price of an
22	22	e-cigarette or nicotine product sold.
23	23	(c) A tax imposed under this section is in addition to the
24	24	tax imposed under Subchapter C, Chapter 151. A tax imposed under
25	25	this section does not apply to a sale unless the tax imposed under
26	26	Subchapter C, Chapter 151, applies to the sale.
27	27	Sec. 164.0003. E-CIGARETTE AND NICOTINE PRODUCT USE TAX.
28	28	(a) A tax is imposed on the storage, use, or other consumption in
29	29	this state of an e-cigarette or nicotine product purchased from a
30	30	retailer for storage, use, or other consumption in this state.
31	31	(b) The tax rate is 10 percent of the sales price of an
32	32	e-cigarette or nicotine product stored, used, or otherwise consumed
33	33	in this state.
34	34	(c) A tax imposed under this section is in addition to the
35	35	tax imposed under Subchapter D, Chapter 151. A tax imposed under
36	36	this section does not apply to the storage, use, or other
37	37	consumption of an e-cigarette or nicotine product unless the tax
38	38	imposed under Subchapter D, Chapter 151, applies to the storage,
39	39	use, or other consumption.
40	40	Sec. 164.0004. APPLICATION OF OTHER PROVISIONS OF CODE.
41	41	(a) Except as provided by this chapter:
42	42	(1) the taxes imposed under this chapter are
43	43	administered, imposed, collected, and enforced in the same manner
44	44	as the taxes under Chapter 151 are administered, imposed,
45	45	collected, and enforced; and
46	46	(2) the provisions of Chapter 151 applicable to the
47	47	sales tax imposed under Subchapter C, Chapter 151, and the use tax
48	48	imposed under Subchapter D, Chapter 151, apply to the sales and use
49	49	taxes imposed under this chapter.
50	50	(b) A change in the law relating to the taxation of the sale
51	51	or use of an e-cigarette or nicotine product under Chapter 151 also
52	52	applies to the sales or use tax imposed under this chapter.
53	53	Sec. 164.0005. REPORTS. (a) A person required to file a
54	54	report under Section 151.403 who is also required to collect or pay
55	55	a tax under this chapter shall file with the comptroller a report
56	56	stating:
57	57	(1) for sales tax purposes, the amount of total
58	58	receipts from e-cigarettes and nicotine products sold by the seller
59	59	during the reporting period;
60	60	(2) for use tax purposes, the amount of total receipts
61	61	from e-cigarettes and nicotine products sold by the retailer during
62	62	the reporting period for storage, use, or other consumption in this
63	63	state;
64	64	(3) the amount of the total sales prices of
65	65	e-cigarettes and nicotine products subject to the use tax that were
66	66	acquired during the reporting period for storage, use, or other
67	67	consumption in this state by a purchaser who did not pay the tax to a
68	68	retailer;
69	69	(4) the amount of the taxes due under this chapter for
70	70	the reporting period; and
71	71	(5) any other information required by the comptroller.
72	72	(b) The report required by this section for a reporting
73	73	period is due on the same date that the tax payment for the period is
74	74	due.
75	75	Sec. 164.0006. RECORDS. (a) A person required to file a
76	76	report under Section 151.403 who is also required to collect or pay
77	77	a tax under this chapter shall keep a complete record of:
78	78	(1) all gross receipts from each sale to which this
79	79	chapter applies occurring during each reporting period, along with
80	80	documentation relating to those receipts;
81	81	(2) all purchases of e-cigarettes and nicotine
82	82	products, including the constituent parts of e-cigarettes and
83	83	nicotine products, from every source during each reporting period,
84	84	along with documentation relating to those purchases;
85	85	(3) all sales and use taxes, and any money represented
86	86	to be sales or use tax, collected under this chapter during each
87	87	reporting period; and
88	88	(4) any other information required by the comptroller.
89	89	(b) A person shall keep the records required by Subsection
90	90	(a) for the period required by Section 151.025(b).
91	91	Sec. 164.0007. DISPOSITION OF PROCEEDS. The comptroller
92	92	shall deposit the proceeds from taxes imposed under this chapter to
93	93	the credit of the general revenue fund.
94	94	SECTION 2. This Act takes effect September 1, 2021.