Bill Text: TX HB1411 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to sales and use taxes on e-cigarette vapor products to fund grants for local law enforcement mental health staff; imposing taxes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-02-28 - Referred to Ways & Means [HB1411 Detail]
Download: Texas-2017-HB1411-Introduced.html
85R4870 BEF/GCB-F | ||
By: Turner | H.B. No. 1411 |
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relating to sales and use taxes on e-cigarette vapor products to | ||
fund grants for local law enforcement mental health staff; 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-CIGARETTE VAPOR PRODUCTS | ||
Sec. 164.001. 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. 164.002. 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. 164.003. 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. 164.004. 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. 164.005. 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. 164.006. 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. 164.007. DISPOSITION OF REVENUE. The comptroller | ||
shall deposit the revenue from taxes imposed under this chapter in | ||
an account in the general revenue fund. The account is administered | ||
by the Health and Human Services Commission. Money in the account | ||
may be appropriated only to the commission for the purpose of making | ||
grants under Section 164.008. | ||
Sec. 164.008. GRANTS FOR LOCAL LAW ENFORCEMENT MENTAL | ||
HEALTH STAFF. (a) In this section, "commission" means the Health | ||
and Human Services Commission. | ||
(b) Using money appropriated as provided by Section | ||
164.007, the commission shall make grants to local law enforcement | ||
agencies for the purpose of hiring staff to provide mental health | ||
services related to the agencies' law enforcement functions. | ||
(c) The commission shall request proposals for the award of | ||
grants under this section. The commission shall evaluate the | ||
proposals and award grants based on the proposed recipients' | ||
quantifiable effectiveness and potentially positive impact on the | ||
delivery of mental health services in the law enforcement context. | ||
(d) A grant recipient may use grant money received under | ||
this section only to pay for activities directly related to the | ||
purpose of the grant program as described by Subsection (b). | ||
(e) The commission shall establish procedures to administer | ||
the grant program, including a procedure for the submission of a | ||
proposal and a procedure to be used by the commission to evaluate a | ||
proposal. | ||
(f) The commission shall enter into a contract that includes | ||
performance requirements with each grant recipient. The commission | ||
shall monitor and enforce the terms of the contract. The contract | ||
must authorize the commission to recoup grant money from a grant | ||
recipient for failure of the grant recipient to comply with the | ||
terms of the contract. | ||
SECTION 2. This Act takes effect September 1, 2017. |