Supplement: TX HB4865 | 2023-2024 | 88th Legislature | Fiscal Note (House Committee Report)
For additional supplements on Texas HB4865 please see the Bill Drafting List
Bill Title: Relating to the taxation of cigars and pipe tobacco sold by certain remote retail sellers; requiring an occupational permit.
Status: 2023-05-18 - Left pending in committee [HB4865 Detail]
Download: Texas-2023-HB4865-Fiscal_Note_House_Committee_Report_.html
Bill Title: Relating to the taxation of cigars and pipe tobacco sold by certain remote retail sellers; requiring an occupational permit.
Status: 2023-05-18 - Left pending in committee [HB4865 Detail]
Download: Texas-2023-HB4865-Fiscal_Note_House_Committee_Report_.html
| TO: |
Honorable Morgan Meyer, Chair, House Committee on Ways & Means |
| FROM: |
Jerry McGinty, Director, Legislative Budget Board
|
| IN RE: |
HB4865 by Harris, Cody (relating to the taxation of cigars and pipe tobacco sold by certain remote retail sellers; requiring an occupational permit.), Committee Report 1st House, Substituted |
Estimated Two-year Net Impact to General Revenue Related Funds for HB4865, Committee Report 1st House, Substituted : a positive impact of $383,000 through the biennium ending August 31, 2025.
General Revenue-Related Funds, Five- Year Impact:
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2024 | $97,000 |
| 2025 | $286,000 |
| 2026 | $286,000 |
| 2027 | $286,000 |
| 2028 | $286,000 |
All Funds, Five-Year Impact:
| Fiscal Year | Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
|---|---|
| 2024 | $97,000 |
| 2025 | $286,000 |
| 2026 | $286,000 |
| 2027 | $286,000 |
| 2028 | $286,000 |
Fiscal Analysis
The bill would amend Chapter 155 of the Tax Code, regarding the cigars and tobacco products tax, to create a remote retail seller permit.
The bill requires remote sellers to obtain a remote retail seller's permit to sell cigars or pipe tobacco remotely into Texas. The permit fee would be $180 and the permittee would be required to remit all pertinent sales and excise taxes on cigars and pipe tobacco they sell into Texas.
The Comptroller would be required to adopt rules necessary to implement changes made by the bill by January 1, 2024.
The bill would take effect September 1, 2023 except that the remote retail seller permit would not be required until April 1, 2024.
The bill requires remote sellers to obtain a remote retail seller's permit to sell cigars or pipe tobacco remotely into Texas. The permit fee would be $180 and the permittee would be required to remit all pertinent sales and excise taxes on cigars and pipe tobacco they sell into Texas.
The Comptroller would be required to adopt rules necessary to implement changes made by the bill by January 1, 2024.
The bill would take effect September 1, 2023 except that the remote retail seller permit would not be required until April 1, 2024.
Methodology
The Comptroller's analysis is based on information provided by industry sources on cigars sold into Texas and the number of potential permittees.
Local Government Impact
No fiscal implication to units of local government is anticipated.
| Source Agencies: | 304 Comptroller of Public Accounts |
| LBB Staff: | JMc, KK, SD, BRI |
