Texas 2023 - 88th Regular

Texas House Bill HB5141 Compare Versions

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1	1	88R13621 BEF-F
2	2	By: Cain H.B. No. 5141
3	3
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5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to local sales and use tax administration.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 321.002(a)(3), Tax Code, is amended to
10	10	read as follows:
11	11	(3)(A) "Place of business of the retailer" means an
12	12	established outlet, office, or location operated by the retailer,
13	13	or operated by the retailer's agent or employee, for the purpose of
14	14	receiving orders, regardless of the method by which orders are
15	15	transmitted or received, for taxable items and includes any
16	16	location at which three or more orders are received by the retailer
17	17	during a calendar year. A warehouse, storage yard, or
18	18	manufacturing plant is not a "place of business of the retailer"
19	19	unless at least three orders are received by the retailer during the
20	20	calendar year at the warehouse, storage yard, or manufacturing
21	21	plant.
22	22	(B) An outlet, office, facility, or any location
23	23	that contracts with a retail or commercial business to process for
24	24	that business invoices, purchase orders, bills of lading, or other
25	25	equivalent records onto which sales tax is added, including an
26	26	office operated for the purpose of buying and selling taxable goods
27	27	to be used or consumed by the retail or commercial business, is not
28	28	a "place of business of the retailer" if the comptroller determines
29	29	that the outlet, office, facility, or location functions or exists
30	30	to avoid the tax legally due under this chapter or exists solely to
31	31	rebate a portion of the tax imposed by this chapter to the
32	32	contracting business. An outlet, office, facility, or location
33	33	does not exist to avoid the tax legally due under this chapter or
34	34	solely to rebate a portion of the tax imposed by this chapter if the
35	35	outlet, office, facility, or location provides significant
36	36	business services, beyond processing invoices, to the contracting
37	37	business, including logistics management, purchasing, inventory
38	38	control, or other vital business services.
39	39	(C) Notwithstanding any other provision of this
40	40	subdivision, a kiosk is not a "place of business of the retailer."
41	41	In this subdivision, "kiosk" means a small stand-alone area or
42	42	structure that:
43	43	(i) is used solely to display merchandise
44	44	or to submit orders for taxable items from a data entry device, or
45	45	both;
46	46	(ii) is located entirely within a location
47	47	that is a place of business of another retailer, such as a
48	48	department store or shopping mall; and
49	49	(iii) at which taxable items are not
50	50	available for immediate delivery to a customer.
51	51	SECTION 2. Section 321.203(b), Tax Code, is amended to read
52	52	as follows:
53	53	(b) If a retailer has only one place of business in this
54	54	state, all of the retailer's retail sales of taxable items,
55	55	regardless of the method by which orders for the taxable items are
56	56	transmitted or received, are consummated at that place of business
57	57	except as provided by Subsection (e).
58	58	SECTION 3. Section 323.203(b), Tax Code, is amended to read
59	59	as follows:
60	60	(b) If a retailer has only one place of business in this
61	61	state, all of the retailer's retail sales of taxable items,
62	62	regardless of the method by which orders for the taxable items are
63	63	transmitted or received, are consummated at that place of business
64	64	except as provided by Subsection (e).
65	65	SECTION 4. The changes in law made by this Act do not affect
66	66	tax liability accruing before the effective date of this Act. That
67	67	liability continues in effect as if this Act had not been enacted,
68	68	and the former law is continued in effect for the collection of
69	69	taxes due and for civil and criminal enforcement of the liability
70	70	for those taxes.
71	71	SECTION 5. This Act takes effect January 1, 2024.