Bill Text: TX SB1332 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to sales and use taxes on e-cigarette vapor products; imposing taxes; providing an administrative penalty.
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Introduced - Dead) 2019-03-19 - Co-author authorized [SB1332 Detail]
Download: Texas-2019-SB1332-Introduced.html
86R9133 SRA-D | ||
By: Johnson, et al. | S.B. No. 1332 |
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relating to sales and use taxes on e-cigarette vapor products; | ||
imposing taxes; providing an administrative penalty. | ||
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-CIGARETTE VAPOR PRODUCTS | ||
Sec. 164.0001. DEFINITIONS. In this chapter: | ||
(1) "E-cigarette" has the meaning assigned by Section | ||
161.081, Health and Safety Code. | ||
(2) "Vapor product" means a consumable nicotine liquid | ||
solution or other material containing nicotine suitable for use in | ||
an e-cigarette. | ||
Sec. 164.0002. E-CIGARETTE VAPOR PRODUCT SALES TAX. (a) A | ||
tax is imposed on each sale of a vapor product in this state. | ||
(b) The tax rate is five cents for each milliliter or | ||
fractional part of a milliliter of vapor product sold. | ||
(c) The tax imposed under this section is in addition to the | ||
tax imposed under Subchapter C, Chapter 151. The 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 VAPOR PRODUCT USE TAX. (a) A | ||
tax is imposed on the storage, use, or other consumption in this | ||
state of a vapor product purchased from a retailer for storage, use, | ||
or other consumption in this state. | ||
(b) The tax rate is five cents for each milliliter or | ||
fractional part of a milliliter of vapor product stored, used, or | ||
otherwise consumed in this state. | ||
(c) The tax imposed under this section is in addition to the | ||
tax imposed under Subchapter D, Chapter 151. The tax imposed under | ||
this section does not apply to the storage, use, or other | ||
consumption of a vapor 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 a vapor 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 volume of vapor | ||
products sold by the seller during the reporting period; | ||
(2) for use tax purposes, the volume of vapor products | ||
sold by the retailer during the reporting period for storage, use, | ||
or other consumption in this state; | ||
(3) the volume of vapor 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 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 volume of vapor products sold in this state | ||
during each reporting period; | ||
(2) the volume of vapor products, including the | ||
constituent parts of vapor products, purchased from every source | ||
during each reporting period; | ||
(3) all sales and use taxes, and any money represented | ||
to be sales or use tax, collected during each reporting period; and | ||
(4) any other information required by the comptroller. | ||
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. | ||
Sec. 164.0008. DISCIPLINARY ACTION FOR CERTAIN VIOLATIONS. | ||
(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 is subject | ||
to disciplinary action as provided by this section if: | ||
(1) an agent or employee of the person commits an | ||
offense under Subchapter H, Chapter 161, Health and Safety Code; | ||
and | ||
(2) the person, with criminal negligence, failed to | ||
prevent the offense through adequate supervision and training of | ||
the agent or employee. | ||
(b) If the comptroller finds, after notice and an | ||
opportunity for a hearing, that a person described by Subsection | ||
(a) has violated Subchapter H, Chapter 161, Health and Safety Code, | ||
at a place of business for which a sales tax permit under Chapter | ||
151 has been issued, the comptroller may suspend the permit for that | ||
place of business or administratively assess a fine as follows: | ||
(1) if the person has not been found to have violated | ||
Subchapter H, Chapter 161, Health and Safety Code, at that place of | ||
business during the preceding 12 months, the comptroller may | ||
require the person to pay a fine in an amount not to exceed $500; | ||
(2) if the person has been found to have violated | ||
Subchapter H, Chapter 161, Health and Safety Code, at that place of | ||
business once during the preceding 12 months, the comptroller may | ||
require the person to pay a fine in an amount not to exceed $750; and | ||
(3) if the person has been found to have violated | ||
Subchapter H, Chapter 161, Health and Safety Code, at that place of | ||
business at least twice during the preceding 12 months, the | ||
comptroller may require the person to pay a fine in an amount not to | ||
exceed $1,000 or suspend the sales tax permit for that place of | ||
business for not more than three days. | ||
(c) Except as provided by Section 164.0009, if the person | ||
has been found to have violated Section 161.082(b), Health and | ||
Safety Code, on four or more previous and separate occasions at the | ||
same place of business during the preceding 24 months, the | ||
comptroller shall revoke the sales tax permit for that place of | ||
business. | ||
(d) A person whose sales tax permit has been revoked under | ||
this section may not apply for a sales tax permit under Chapter 151 | ||
for the same place of business before the expiration of six months | ||
after the effective date of the revocation. | ||
Sec. 164.0009. ACTIONS OF EMPLOYEE. (a) For purposes of | ||
Subchapter H, Chapter 161, Health and Safety Code, and the | ||
provisions of this code relating to the sale or delivery of | ||
e-cigarettes to a minor, the comptroller may suspend a sales tax | ||
permit of a person required to file a report under Section 151.403 | ||
who is also required to collect or pay a tax under this chapter but | ||
may not revoke the permit under Section 164.0008 if the comptroller | ||
finds that: | ||
(1) the person has not violated Section 161.082(b), | ||
Health and Safety Code, more than four times at the place of | ||
business for which the permit is issued in the 24-month period | ||
preceding the violation in question; | ||
(2) the person requires its employees to attend a | ||
comptroller-approved seller training program; | ||
(3) the employee has actually attended a | ||
comptroller-approved seller training program; and | ||
(4) the person has not directly or indirectly | ||
encouraged the employee to violate the law. | ||
(b) The comptroller shall adopt rules or policies | ||
establishing the minimum requirements for approved seller training | ||
programs. On application, the comptroller shall approve seller | ||
training programs meeting the requirements that are sponsored | ||
privately or by public community colleges. The comptroller may | ||
charge an application fee in an amount necessary to defray the | ||
expense of processing the application. | ||
(c) The comptroller may approve under this section a seller | ||
training program sponsored by a person described by Subsection (a) | ||
for the purpose of training the person's employees without regard | ||
to whether the employees are located at the same place of business. | ||
This subsection applies only to a person who employs at least 100 | ||
persons at any one time during the permit year who sell | ||
e-cigarettes. | ||
SECTION 2. This Act takes effect September 1, 2019. |