88R1171 BEF-D
By: Thierry H.B. No. 447
A BILL TO BE ENTITLED
AN ACT
relating to sales and use taxes imposed on certain assault weapons;
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 165 to read as follows:
CHAPTER 165. ASSAULT WEAPON TAXES
SUBCHAPTER A. DEFINITIONS
Sec. 165.0001. LARGE CAPACITY AMMUNITION FEEDING DEVICE.
(a) In this chapter, "large capacity ammunition feeding device"
means a magazine, belt, drum, feed strip, or similar device,
including a device joined or coupled with another in any manner,
that has an overall capacity of, or that can be readily restored,
changed, or converted to accept, more than 10 rounds of ammunition.
(b) The term "large capacity ammunition feeding device"
does not include an attached tubular device designed to accept, and
capable of operating only with, .22 caliber rimfire ammunition.
Sec. 165.0002. PRESUMPTIVE RETAIL PRICE. In this chapter,
"presumptive retail price" means the average retail sales price of
an item in the United States during the preceding calendar year, as
the comptroller determines or estimates.
Sec. 165.0003. SEMIAUTOMATIC ASSAULT WEAPON. (a) In this
chapter, "semiautomatic assault weapon" means:
(1) a semiautomatic rifle that has the capacity to use
a magazine that is not a fixed magazine and has:
(A) a pistol grip;
(B) a forward grip;
(C) a folding, telescoping, or detachable stock;
(D) the ability to fold or adjust in a manner that
reduces the length, size, or any other dimension, or otherwise
enhances the concealability, of the rifle;
(E) a functional grenade launcher;
(F) a barrel shroud; or
(G) a threaded barrel;
(2) a semiautomatic rifle that has a fixed magazine
with the capacity to accept more than 10 rounds of ammunition,
except for an attached tubular device designed to accept, and
capable of operating only with, .22 caliber rimfire ammunition;
(3) any part, combination of parts, component, device,
attachment, or accessory that is designed or functions to
accelerate the rate of fire of a semiautomatic firearm but not
convert the semiautomatic firearm into a machine gun;
(4) a semiautomatic pistol that has the capacity to
use a magazine that is not a fixed magazine and has:
(A) a threaded barrel;
(B) a second pistol grip;
(C) a barrel shroud;
(D) the capacity to accept a detachable magazine
at a location outside of the pistol grip;
(E) a design that is identical, or nearly
identical, to a design intended for a machine gun;
(F) a manufactured weight of 50 ounces or more
when unloaded;
(G) a stabilizing brace or similar component; or
(H) a buffer tube or other part that protrudes
horizontally behind the pistol grip;
(5) a semiautomatic pistol with a fixed magazine that
has the capacity to accept more than 10 rounds;
(6) a semiautomatic shotgun that:
(A) either:
(i) has a fixed magazine with the capacity
to accept more than five rounds; or
(ii) does not have a fixed magazine; and
(B) has:
(i) a folding, telescoping, or detachable
stock;
(ii) a pistol grip or bird's head grip;
(iii) the ability to accept a detachable
magazine;
(iv) a forward grip; or
(v) a functional grenade launcher;
(7) a shotgun with a revolving cylinder;
(8) a belt-fed semiautomatic firearm, including a TNW
Firearms model M2HB firearm or FN America model M249S series
firearm;
(9) any combination of parts from which a firearm
described by Subdivisions (1) through (8) can be assembled; or
(10) the frame or receiver of a rifle or shotgun
described by Subdivision (1), (2), (3), (4), or (8).
(b) The term "semiautomatic assault weapon" does not
include a firearm that is:
(1) manually operated by bolt or lever action; or
(2) capable only of firing rimfire ammunition.
Sec. 165.0004. TAXABLE ASSAULT WEAPON. In this chapter,
"taxable assault weapon" means a:
(1) large capacity ammunition feeding device; or
(2) semiautomatic assault weapon.
SUBCHAPTER B. ASSAULT WEAPON SALES TAX
Sec. 165.0051. SALES TAX IMPOSED. (a) A tax is imposed on
each sale of a taxable assault weapon in this state.
(b) The tax rate is 1,000 percent of the greater of the:
(1) sales price of the taxable assault weapon sold; or
(2) presumptive retail price of the taxable assault
weapon sold.
Sec. 165.0052. APPLICABILITY OF SALES TAX. (a) The tax
imposed under Section 165.0051 is in addition to the tax imposed
under Subchapter C, Chapter 151.
(b) Except as provided by Section 165.0152, the tax imposed
under Section 165.0051 does not apply to a sale unless the tax
imposed under Subchapter C, Chapter 151, applies to the sale.
SUBCHAPTER C. ASSAULT WEAPON USE TAX
Sec. 165.0101. USE TAX IMPOSED. (a) A tax is imposed on the
storage, use, or other consumption in this state of a taxable
assault weapon purchased from a retailer for storage, use, or other
consumption in this state.
(b) The tax rate is 1,000 percent of the greater of the:
(1) sales price of the taxable assault weapon stored,
used, or otherwise consumed in this state; or
(2) presumptive retail price of the taxable assault
weapon stored, used, or otherwise consumed in this state.
Sec. 165.0102. APPLICABILITY OF USE TAX. (a) The tax
imposed under Section 165.0101 is in addition to the tax imposed
under Subchapter D, Chapter 151.
(b) Except as provided by Section 165.0152, the tax imposed
under Section 165.0101 does not apply to the storage, use, or other
consumption of a taxable assault weapon unless the tax imposed
under Subchapter D, Chapter 151, applies to the storage, use, or
other consumption.
SUBCHAPTER D. APPLICATION OF OTHER LAW
Sec. 165.0151. ADMINISTRATION OF TAX. (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) Except as provided by Section 165.0152, a change in the
law relating to the taxation of the sale or use of a taxable assault
weapon under Chapter 151 also applies to the sales or use tax
imposed under this chapter.
Sec. 165.0152. EXEMPTIONS. (a) Sections 151.302(a),
151.303, 151.307, 151.309, and 151.330 apply to the sales and use
taxes imposed under this chapter.
(b) Except as provided by Subsection (a), the provisions of
Subchapter H, Chapter 151, do not apply to the sales and use taxes
imposed under this chapter.
SUBCHAPTER E. REPORTS AND RECORDS
Sec. 165.0201. 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 make, model, sales
price, and presumptive retail price of each taxable assault weapon
sold by the seller during the reporting period;
(2) for use tax purposes, the make, model, sales
price, and presumptive retail price of each taxable assault weapon
sold by the retailer during the reporting period for storage, use,
or other consumption in this state;
(3) the make, model, sales price, and presumptive
retail price of each taxable assault weapon subject to the use tax
that was 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 the comptroller requires.
(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. 165.0202. 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) the make, model, sales price, and presumptive
retail price of each taxable assault weapon sold during each
reporting period;
(2) the make, model, sales price, and presumptive
retail price of each taxable assault weapon purchased during each
reporting period;
(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 the comptroller requires.
(b) A person shall keep the records required by Subsection
(a) for the period required by Section 151.025(b).
SUBCHAPTER F. DISPOSITION OF PROCEEDS
Sec. 165.0251. DEPOSIT AND USE OF PROCEEDS. The
comptroller shall deposit the proceeds from taxes imposed under
this chapter to the credit of an account in the general revenue fund
that may be appropriated only to the Texas Education Agency for the
purpose of providing funding to public schools to improve campus
safety.
SECTION 2. This Act takes effect September 1, 2023.