87R12432 SRA-F
By: Springer S.B. No. 1712
A BILL TO BE ENTITLED
AN ACT
relating to sales and use taxes on e-cigarettes and nicotine
products; imposing taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 164 to read as follows:
CHAPTER 164. TAX ON E-CIGARETTES AND NICOTINE PRODUCTS
Sec. 164.0001. DEFINITIONS. In this chapter:
(1) "E-cigarette" has the meaning assigned by Section
161.081, Health and Safety Code.
(2) "Nicotine product" means an item that contains
nicotine and is not taxed under Chapter 154 or 155.
Sec. 164.0002. E-CIGARETTE AND NICOTINE PRODUCT SALES TAX.
(a) A tax is imposed on each sale of an e-cigarette or nicotine
product in this state.
(b) The tax rate is 10 percent of the sales price of an
e-cigarette or nicotine product sold.
(c) A tax imposed under this section is in addition to the
tax imposed under Subchapter C, Chapter 151. A tax imposed under
this section does not apply to a sale unless the tax imposed under
Subchapter C, Chapter 151, applies to the sale.
Sec. 164.0003. E-CIGARETTE AND NICOTINE PRODUCT USE TAX.
(a) A tax is imposed on the storage, use, or other consumption in
this state of an e-cigarette or nicotine product purchased from a
retailer for storage, use, or other consumption in this state.
(b) The tax rate is 10 percent of the sales price of an
e-cigarette or nicotine product stored, used, or otherwise consumed
in this state.
(c) A tax imposed under this section is in addition to the
tax imposed under Subchapter D, Chapter 151. A tax imposed under
this section does not apply to the storage, use, or other
consumption of an e-cigarette or nicotine product unless the tax
imposed under Subchapter D, Chapter 151, applies to the storage,
use, or other consumption.
Sec. 164.0004. APPLICATION OF OTHER PROVISIONS OF CODE.
(a) Except as provided by this chapter:
(1) the taxes imposed under this chapter are
administered, imposed, collected, and enforced in the same manner
as the taxes under Chapter 151 are administered, imposed,
collected, and enforced; and
(2) the provisions of Chapter 151 applicable to the
sales tax imposed under Subchapter C, Chapter 151, and the use tax
imposed under Subchapter D, Chapter 151, apply to the sales and use
taxes imposed under this chapter.
(b) A change in the law relating to the taxation of the sale
or use of an e-cigarette or nicotine product under Chapter 151 also
applies to the sales or use tax imposed under this chapter.
Sec. 164.0005. REPORTS. (a) A person required to file a
report under Section 151.403 who is also required to collect or pay
a tax under this chapter shall file with the comptroller a report
stating:
(1) for sales tax purposes, the amount of total
receipts from e-cigarettes and nicotine products sold by the seller
during the reporting period;
(2) for use tax purposes, the amount of total receipts
from e-cigarettes and nicotine products sold by the retailer during
the reporting period for storage, use, or other consumption in this
state;
(3) the amount of the total sales prices of
e-cigarettes and nicotine products subject to the use tax that were
acquired during the reporting period for storage, use, or other
consumption in this state by a purchaser who did not pay the tax to a
retailer;
(4) the amount of the taxes due under this chapter for
the reporting period; and
(5) any other information required by the comptroller.
(b) The report required by this section for a reporting
period is due on the same date that the tax payment for the period is
due.
Sec. 164.0006. RECORDS. (a) A person required to file a
report under Section 151.403 who is also required to collect or pay
a tax under this chapter shall keep a complete record of:
(1) all gross receipts from each sale to which this
chapter applies occurring during each reporting period, along with
documentation relating to those receipts;
(2) all purchases of e-cigarettes and nicotine
products, including the constituent parts of e-cigarettes and
nicotine products, from every source during each reporting period,
along with documentation relating to those purchases;
(3) all sales and use taxes, and any money represented
to be sales or use tax, collected under this chapter during each
reporting period; and
(4) any other information required by the comptroller.
(b) A person shall keep the records required by Subsection
(a) for the period required by Section 151.025(b).
Sec. 164.0007. DISPOSITION OF PROCEEDS. The comptroller
shall deposit the proceeds from taxes imposed under this chapter to
the credit of the general revenue fund.
SECTION 2. This Act takes effect September 1, 2021.