Bill Text: TX HB1523 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the regulation of, and taxes imposed on the sale or use of, cigarettes, tobacco products, and e-cigarettes; imposing taxes; requiring a permit; imposing a fee; providing administrative penalties.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-08 - Referred to Ways & Means [HB1523 Detail]
Download: Texas-2021-HB1523-Introduced.html
87R2175 SRA-D | ||
By: Thierry | H.B. No. 1523 |
|
||
|
||
relating to the regulation of, and taxes imposed on the sale or use | ||
of, cigarettes, tobacco products, and e-cigarettes; imposing | ||
taxes; requiring a permit; imposing a fee; providing administrative | ||
penalties. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 161.081(1-a), (2), and (4), Health and | ||
Safety Code, are amended to read as follows: | ||
(1-a) "E-cigarette" means an electronic cigarette or | ||
any other device that simulates smoking by using a mechanical | ||
heating element, battery, or electronic circuit to deliver nicotine | ||
or other substances to the individual inhaling from the device or a | ||
consumable liquid solution or other material aerosolized or | ||
vaporized during the use of an electronic cigarette or other device | ||
described by this subdivision, regardless of whether the liquid or | ||
other material contains nicotine. The term does not include a | ||
prescription medical device unrelated to the cessation of smoking. | ||
The term includes: | ||
(A) a device described by this subdivision | ||
regardless of whether the device is manufactured, distributed, or | ||
sold as an e-cigarette, e-cigar, or e-pipe or under another product | ||
name or description; and | ||
(B) a component, part, or accessory for the | ||
device, regardless of whether the component, part, or accessory is | ||
sold separately from the device. | ||
(2) "Permit holder" has the meaning assigned by | ||
Section 154.001, [ |
||
applicable. | ||
(4) "Retailer" means a person who engages in the | ||
practice of selling cigarettes, e-cigarettes, or tobacco products | ||
to consumers and includes the owner of a coin-operated cigarette, | ||
e-cigarette, or tobacco product vending machine. The term includes | ||
a retailer as that term is defined by Section 154.001, [ |
||
or 164.0001, Tax Code, as applicable. | ||
SECTION 2. Section 161.083(d), Health and Safety Code, is | ||
amended to read as follows: | ||
(d) Notwithstanding any other provision of law, a violation | ||
of this section is not a violation of this subchapter for purposes | ||
of Section 161.0901 [ |
||
SECTION 3. Subchapter H, Chapter 161, Health and Safety | ||
Code, is amended by adding Section 161.0901 to read as follows: | ||
Sec. 161.0901. DISCIPLINARY ACTION AGAINST CIGARETTE, | ||
E-CIGARETTE, AND TOBACCO PRODUCTS RETAILERS. (a) A retailer is | ||
subject to disciplinary action as provided by this section if an | ||
agent or employee of the retailer commits an offense under this | ||
subchapter or Subchapter K. | ||
(b) If the comptroller finds, after notice and an | ||
opportunity for a hearing as provided by Chapter 2001, Government | ||
Code, that a permit holder has violated this subchapter or | ||
Subchapter K at a place of business for which a permit is issued, | ||
the comptroller may suspend the permit for that place of business | ||
and administratively assess a fine as follows: | ||
(1) if the permit holder has not been found to have | ||
violated this subchapter or Subchapter K at that place of business | ||
during the 24-month period preceding the violation, the comptroller | ||
may require the permit holder to pay a fine in an amount not to | ||
exceed $1,000; | ||
(2) if the permit holder has been found to have | ||
violated this subchapter or Subchapter K at that place of business | ||
once during the 24-month period preceding the violation, the | ||
comptroller may require the permit holder to pay a fine in an amount | ||
not to exceed $2,000; and | ||
(3) if the permit holder has been found to have | ||
violated this subchapter or Subchapter K at that place of business | ||
at least twice during the 24-month period preceding the violation, | ||
the comptroller may: | ||
(A) require the permit holder to pay a fine in an | ||
amount not to exceed $3,000; and | ||
(B) suspend the permit for that place of business | ||
for not more than five days. | ||
(c) Except as provided by Subsection (e), if the permit | ||
holder has been found to have violated this subchapter or | ||
Subchapter K on four or more previous and separate occasions at the | ||
same place of business during the 24-month period preceding the | ||
violation, the comptroller shall revoke the permit issued under | ||
Chapter 154, 155, or 164, Tax Code, as applicable. If the permit | ||
holder does not hold a permit under Chapter 154, 155, or 164, Tax | ||
Code, the comptroller shall revoke the permit issued under Section | ||
151.201, Tax Code. | ||
(d) A permit holder whose permit has been revoked under this | ||
section may not apply for a permit for the same place of business | ||
before the expiration of six months after the effective date of the | ||
revocation. | ||
(e) For purposes of this section, the comptroller may | ||
suspend a permit but may not revoke the permit under Subsection (c) | ||
if the comptroller finds that: | ||
(1) the employer has not violated this subchapter or | ||
Subchapter K more than seven times at the place of business for | ||
which the permit is issued in the 48-month period preceding the | ||
violation in question; | ||
(2) the employer requires its employees to attend a | ||
comptroller-approved seller training program; | ||
(3) the employees have actually attended a | ||
comptroller-approved seller training program; and | ||
(4) the employer has not directly or indirectly | ||
encouraged the employees to violate the law. | ||
(f) The comptroller may adopt rules to implement this | ||
section. | ||
SECTION 4. Section 111.00455(b), Tax Code, is amended to | ||
read as follows: | ||
(b) The following are not contested cases under Subsection | ||
(a) and Section 2003.101, Government Code: | ||
(1) a show cause hearing or any hearing not related to | ||
the collection, receipt, administration, or enforcement of the | ||
amount of a tax or fee imposed, or the penalty or interest | ||
associated with that amount, except for a hearing under Section | ||
151.157(f), 151.1575(c), or 151.712(g) of this code or Section | ||
161.0901, Health and Safety Code [ |
||
(2) a property value study hearing under Subchapter M, | ||
Chapter 403, Government Code; | ||
(3) a hearing in which the issue relates to: | ||
(A) Chapters 72-75, Property Code; | ||
(B) forfeiture of a right to do business; | ||
(C) a certificate of authority; | ||
(D) articles of incorporation; | ||
(E) a penalty imposed under Section 151.703(d); | ||
(F) the refusal or failure to settle under | ||
Section 111.101; or | ||
(G) a request for or revocation of an exemption | ||
from taxation; and | ||
(4) any other hearing not related to the collection, | ||
receipt, administration, or enforcement of the amount of a tax or | ||
fee imposed, or the penalty or interest associated with that | ||
amount. | ||
SECTION 5. Section 154.1135(b), Tax Code, is amended to | ||
read as follows: | ||
(b) The payment must be made in cash or by money order, [ |
||
check, or credit card. | ||
SECTION 6. Section 154.121(b), Tax Code, is amended to read | ||
as follows: | ||
(b) Revenue from the sale of retailer's permits shall be | ||
deposited to the general revenue fund and may be appropriated only | ||
as provided by this section. The money may be appropriated first to | ||
the comptroller for administering: | ||
(1) permitting [ |
||
retailers under this chapter and Chapters [ |
||
and | ||
(2) disciplinary actions taken under Section | ||
161.0901, Health and Safety Code. | ||
SECTION 7. Section 155.050(b), Tax Code, is amended to read | ||
as follows: | ||
(b) The payment must be made in cash or by money order, [ |
||
check, or credit card. | ||
SECTION 8. Section 155.058(b), Tax Code, is amended to read | ||
as follows: | ||
(b) Revenue from the sale of retailer's permits shall be | ||
deposited to the general revenue fund and may be appropriated only | ||
as provided by this section. The money may be appropriated first to | ||
the comptroller for administering: | ||
(1) permitting [ |
||
retailers under this chapter and Chapters [ |
||
and | ||
(2) disciplinary actions taken under Section | ||
161.0901, Health and Safety Code. | ||
SECTION 9. Subtitle E, Title 2, Tax Code, is amended by | ||
adding Chapter 164 to read as follows: | ||
CHAPTER 164. TAX ON E-CIGARETTES | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 164.0001. DEFINITIONS. In this chapter: | ||
(1) "E-cigarette" has the meaning assigned by Section | ||
161.081, Health and Safety Code. | ||
(2) "Marketplace" has the meaning assigned by Section | ||
151.0242. | ||
(3) "Permit holder" means a person who obtains a | ||
permit under Section 164.0102. | ||
(4) "Retailer" means a person who engages in the | ||
business of selling e-cigarettes to consumers, including a person | ||
who sells e-cigarettes to consumers through a marketplace. | ||
Sec. 164.0002. INAPPLICABILITY TO CERTAIN PRODUCTS. This | ||
chapter does not apply to a product described by Section 161.0815, | ||
Health and Safety Code. | ||
Sec. 164.0003. RULES. The comptroller may adopt rules to | ||
implement this chapter, including rules exempting a person who | ||
sells e-cigarettes to consumers through a marketplace from the | ||
requirements of this chapter. | ||
SUBCHAPTER B. IMPOSITION AND ADMINISTRATION OF E-CIGARETTE SALES | ||
AND USE TAXES | ||
Sec. 164.0051. E-CIGARETTE SALES TAX. (a) A tax is imposed | ||
on each sale of an e-cigarette in this state, including a sale made | ||
through a marketplace, except that the tax does not apply to a sale | ||
unless the tax imposed under Subchapter C, Chapter 151, applies to | ||
the sale. | ||
(b) The tax under this section is imposed at the rate | ||
determined under Section 164.0053. | ||
(c) The tax imposed under this section is in addition to the | ||
tax imposed under Subchapter C, Chapter 151. | ||
Sec. 164.0052. E-CIGARETTE USE TAX. (a) A tax is imposed | ||
on the storage, use, or other consumption in this state of an | ||
e-cigarette purchased from a retailer for storage, use, or other | ||
consumption in this state, except that the tax does not apply to the | ||
storage, use, or other consumption unless the tax imposed under | ||
Subchapter D, Chapter 151, applies to the storage, use, or other | ||
consumption. | ||
(b) The tax under this section is imposed at the rate | ||
determined under Section 164.0053. | ||
(c) The tax imposed under this section is in addition to the | ||
tax imposed under Subchapter D, Chapter 151. | ||
Sec. 164.0053. TAX RATE. (a) In this section: | ||
(1) "Cigarette" means a roll for smoking described by | ||
Section 154.001(2) weighing three pounds or less per thousand. | ||
(2) "Federal excise tax rate on cigarettes" means the | ||
tax rate imposed on cigarettes under 26 U.S.C Section 5701(b)(1). | ||
(3) "First sale" has the meaning assigned by Section | ||
154.001. | ||
(4) "State excise tax rate on cigarettes" means the | ||
tax rate imposed on cigarettes under Section 154.021(b)(1). | ||
(b) The rate of the taxes imposed under this chapter in a | ||
calendar year is the rate the comptroller computes and publishes in | ||
the Texas Register not later than December 1 of the preceding | ||
calendar year as required by Subsection (c). | ||
(c) As soon as practicable after the end of each state | ||
fiscal year but not later than December 1 of each year, the | ||
comptroller shall: | ||
(1) determine the tax rate to be imposed under this | ||
chapter in the subsequent calendar year that is proportionate to | ||
the state excise tax rate imposed on cigarettes in this state during | ||
the preceding state fiscal year by: | ||
(A) determining the estimated mean price of 1,000 | ||
cigarettes on first sale in this state during the preceding state | ||
fiscal year, including the amount of the federal excise tax imposed | ||
on cigarettes and excluding the amount of the state excise tax | ||
imposed on cigarettes, using available data and generally accepted | ||
statistical methods in making that determination as necessary; | ||
(B) dividing the state excise tax rate on | ||
cigarettes by the estimated mean price of 1,000 cigarettes on first | ||
sale in this state as determined under Paragraph (A); and | ||
(C) converting the amount computed under | ||
Paragraph (B) into a percentage and rounding that percentage down | ||
to the nearest quarter percentage point; and | ||
(2) publish the tax rate determined under Subdivision | ||
(1) in the Texas Register. | ||
Sec. 164.0054. 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 law relating to the taxation of the sale or | ||
use of an e-cigarette under Chapter 151 also applies to the sales or | ||
use tax imposed under this chapter. | ||
Sec. 164.0055. 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 e-cigarette sales tax purposes, the amount of | ||
total receipts from e-cigarettes sold by the retailer during the | ||
reporting period, if the person is a retailer; | ||
(2) for e-cigarette use tax purposes, the amount of | ||
total receipts from e-cigarettes sold by the retailer during the | ||
reporting period for storage, use, or other consumption in this | ||
state, if the person is a retailer described by Section 151.403(b); | ||
(3) the amount of the total sales prices of | ||
e-cigarettes subject to the e-cigarette use tax that were acquired | ||
during the reporting period for storage, use, or other consumption | ||
in this state, if the person is 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 the tax payment for the period is due. | ||
Sec. 164.0056. 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) all gross receipts from each sale to which this | ||
chapter applies occurring during each reporting period, along with | ||
documentation relating to those receipts; | ||
(2) all purchases of e-cigarettes, including the | ||
constituent parts of e-cigarettes, from every source during each | ||
reporting period, along with documentation relating to those | ||
purchases; | ||
(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 C. E-CIGARETTE RETAILER PERMITS | ||
Sec. 164.0101. PERMITS REQUIRED. (a) A person may not | ||
engage in business as a retailer in this state unless the person has | ||
been issued a permit from the comptroller. A person shall obtain a | ||
permit for each place of business the person owns or operates at | ||
which sales of e-cigarettes are made. | ||
(b) The comptroller shall prescribe the form and content of | ||
an application for a permit and provide the form on request. | ||
(c) The applicant shall accurately complete all information | ||
required by the application and provide the comptroller with | ||
additional information the comptroller considers necessary. | ||
(d) The comptroller may require each corporation, | ||
association, joint venture, syndicate, partnership, or | ||
proprietorship to provide: | ||
(1) financial information regarding the applicant; | ||
and | ||
(2) the identity of each officer, director, | ||
stockholder owning 10 percent or more of the outstanding stock, | ||
partner, member, owner, or managing employee. | ||
(e) Each applicant that applies for a permit to sell | ||
e-cigarettes from a vehicle must provide the make, model, vehicle | ||
identification number, registration number, and any other | ||
information concerning the vehicle the comptroller requires. | ||
(f) All financial information provided under this section | ||
is confidential and not subject to Chapter 552, Government Code. | ||
(g) Permits for engaging in business as an e-cigarette | ||
retailer are governed exclusively by the provisions of this code. | ||
Sec. 164.0102. ISSUANCE OF PERMIT. (a) The comptroller | ||
shall issue a permit to an applicant if the comptroller: | ||
(1) has received an application and fee, if required; | ||
(2) does not reject the application and deny the | ||
permit under Section 164.0103; and | ||
(3) determines that issuing the permit will not | ||
jeopardize the administration and enforcement of this chapter. | ||
(b) The permit shall be issued for a designated place of | ||
business, except as provided by Section 164.0106. | ||
(c) The permits are nonassignable. | ||
(d) The permit must indicate the type of permit that it is | ||
and authorize the sale of e-cigarettes in this state. The permit | ||
must show that it is revocable and shall be forfeited or suspended | ||
if the conditions of issuance, provisions of this chapter, or rules | ||
of the comptroller are violated. | ||
Sec. 164.0103. DENIAL OF PERMIT. The comptroller may | ||
reject an application and deny a permit if the comptroller finds, | ||
after notice and opportunity for hearing, any of the following: | ||
(1) the premises where business will be conducted are | ||
not adequate to protect the e-cigarettes; or | ||
(2) the applicant or managing employee, or if the | ||
applicant is a corporation, an officer, director, manager, or any | ||
stockholder who holds directly or through family or partner | ||
relationship 10 percent or more of the corporation's stock, or, if | ||
the applicant is a partnership, a partner or manager: | ||
(A) has failed to disclose any information | ||
required by Sections 164.0101(c), (d), and (e), including previous | ||
business experience, financial condition of the applicant, present | ||
or previous business affiliations, previous employment, and any | ||
conviction of a felony, or has made a false statement in the | ||
application; or | ||
(B) has previously violated provisions of this | ||
chapter. | ||
Sec. 164.0104. PERMIT YEAR; FEES. (a) A permit required | ||
by this chapter expires on the last day of May of each even-numbered | ||
year. | ||
(b) An application for a permit required by this chapter | ||
must be accompanied by a fee of: | ||
(1) one-half of the amount of the fee for a retailer's | ||
permit required by Section 154.111(b) if the applicant holds a | ||
valid retailer's permit under Section 154.101, 154.102, or 155.041; | ||
or | ||
(2) the amount of the fee for a retailer's permit | ||
required by Section 154.111(b). | ||
(c) For a new or renewal permit required by Section | ||
164.0101, the comptroller shall prorate the fee according to the | ||
number of months remaining during the calendar year that the permit | ||
is to be in effect. | ||
(d) A person who does not obtain a permit each year in a | ||
timely manner must pay a late fee of $50 in addition to the | ||
application fee for the permit. | ||
(e) If on the date of issuance a permit will expire within | ||
three months, the comptroller may collect the prorated permit fee | ||
or the fee for the current year and, with the consent of the permit | ||
holder, may collect the fee for the next permit year and issue a | ||
permit or permits for both periods, as applicable. | ||
(f) A person issued a permit for a place of business that | ||
permanently closes before the permit expiration date is not | ||
entitled to a refund of the permit fee. | ||
Sec. 164.0105. PAYMENT FOR PERMITS. (a) An applicant for a | ||
permit required by Section 164.0101 shall send the required fee | ||
with the application. | ||
(b) The payment must be made in cash or by money order, | ||
check, or credit card. | ||
(c) The comptroller may not issue a permit in exchange for a | ||
check until after the comptroller receives full payment on the | ||
check. | ||
Sec. 164.0106. DISPLAY OF PERMIT. (a) A permit holder | ||
shall keep the permit on public display at the place of business for | ||
which the permit was issued. | ||
(b) A permit holder who has a permit assigned to a vehicle | ||
shall post the permit in a conspicuous place on the vehicle. | ||
Sec. 164.0107. REVENUE. Revenue from the sale of | ||
retailer's permits shall be deposited to the general revenue fund | ||
and may be appropriated only as provided by this section. The money | ||
may be appropriated first to the comptroller for administering: | ||
(1) permitting of retailers under this chapter and | ||
Chapters 154 and 155; and | ||
(2) disciplinary actions taken under Section | ||
161.0901, Health and Safety Code. | ||
Sec. 164.0108. FINAL SUSPENSION OR REVOCATION OF PERMIT. | ||
(a) The comptroller may revoke or suspend a permit holder's permit | ||
if the comptroller finds, after notice and hearing as provided by | ||
this section, that the permit holder violated this chapter or a rule | ||
adopted under this chapter. | ||
(b) If the comptroller intends to suspend or revoke a | ||
permit, the comptroller shall provide the permit holder with | ||
written notice that includes a statement: | ||
(1) of the reason for the intended revocation or | ||
suspension; | ||
(2) that the permit holder is entitled to a hearing by | ||
the comptroller on the proposed suspension or revocation; and | ||
(3) of the date, time, and place of the hearing. | ||
(c) The comptroller shall deliver the written notice by | ||
personal service or by mail to the permit holder's mailing address | ||
as it appears in the comptroller's records. Service by mail is | ||
complete when the notice is deposited with the United States Postal | ||
Service. | ||
(d) The comptroller shall give the permit holder notice | ||
before the 10th day before the final hearing. | ||
(e) A permit holder may appeal the comptroller's decision to | ||
a district court in Travis County not later than the 30th day after | ||
the date the comptroller's decision becomes final. | ||
(f) A person whose permit is suspended or revoked may not | ||
sell, offer for sale, or distribute e-cigarettes from the place of | ||
business to which the permit applied until a new permit is granted | ||
or the suspension is removed. | ||
Sec. 164.0109. SUMMARY SUSPENSION OF PERMIT. (a) The | ||
comptroller may suspend a permit holder's permit without notice or | ||
a hearing for the permit holder's failure to comply with this | ||
chapter or a rule adopted under this chapter if the permit holder's | ||
continued operation constitutes an immediate and substantial | ||
threat to the collection of taxes imposed by this chapter and | ||
attributable to the permit holder's operation. | ||
(b) If the comptroller summarily suspends a permit holder's | ||
permit, proceedings for a preliminary hearing before the | ||
comptroller or the comptroller's representative must be initiated | ||
simultaneously with the summary suspension. The preliminary | ||
hearing shall be set for a date not later than the 10th day after the | ||
date of the summary suspension, unless the parties agree to a later | ||
date. | ||
(c) At the preliminary hearing, the permit holder must show | ||
cause why the permit should not remain suspended pending a final | ||
hearing on suspension or revocation. | ||
(d) Chapter 2001, Government Code, does not apply to a | ||
summary suspension under this section. | ||
(e) To initiate a proceeding to suspend summarily a permit | ||
holder's permit, the comptroller shall serve notice on the permit | ||
holder informing the permit holder of the right to a preliminary | ||
hearing before the comptroller or the comptroller's representative | ||
and of the time and place of the preliminary hearing. The notice | ||
must be personally served on the permit holder or an officer, | ||
employee, or agent of the permit holder or sent by certified or | ||
registered mail, return receipt requested, to the permit holder's | ||
mailing address as it appears in the comptroller's records. The | ||
notice must state the alleged violations that constitute the | ||
grounds for summary suspension. The suspension is effective at the | ||
time the notice is served. If notice is served in person, the | ||
permit holder shall immediately surrender the permit to the | ||
comptroller. If notice is served by mail, the permit holder shall | ||
immediately return the permit to the comptroller. | ||
(f) Section 164.0108, governing hearings for final | ||
suspension or revocation of a permit under this subchapter, governs | ||
a final administrative hearing. | ||
Sec. 164.0110. HEARINGS. Unless otherwise provided by this | ||
chapter, the comptroller shall conduct all hearings required by | ||
this subchapter in accordance with Chapter 2001, Government Code. | ||
The comptroller may designate one or more representatives to | ||
conduct the hearings and may prescribe the rules of procedure | ||
governing the hearings. | ||
SUBCHAPTER D. DISPOSITION OF PROCEEDS | ||
Sec. 164.0151. DEPOSIT AND USE OF PROCEEDS. The | ||
comptroller shall deposit the proceeds from taxes imposed under | ||
this chapter as follows: | ||
(1) 25 percent to the credit of an account in the | ||
general revenue fund that may be appropriated only to the | ||
Department of State Health Services for the purposes of tobacco and | ||
e-cigarette use prevention, control, and enforcement; and | ||
(2) the remainder to the credit of the general revenue | ||
fund. | ||
SECTION 10. The following provisions of the Tax Code are | ||
repealed: | ||
(1) Section 154.1142; | ||
(2) Section 154.1143; | ||
(3) Section 155.0592; and | ||
(4) Section 155.0593. | ||
SECTION 11. Section 161.0901, Health and Safety Code, as | ||
added by this Act, applies only to a violation that occurs on or | ||
after the effective date of this Act. A violation that occurs | ||
before the effective date of this Act is governed by the law in | ||
effect on the date the violation occurred, and the former law is | ||
continued in effect for that purpose. | ||
SECTION 12. (a) Notwithstanding Sections 164.0051 and | ||
164.0052, Tax Code, as added by this Act, the taxes imposed under | ||
those sections apply only to a sale, storage, use, or other | ||
consumption of e-cigarettes that occurs on or after January 1, | ||
2022. | ||
(b) The comptroller of public accounts shall determine and | ||
publish the initial tax rate for the taxes imposed under Sections | ||
164.0051 and 164.0052, Tax Code, as added by this Act, in the manner | ||
required by Section 164.0053, Tax Code, as added by this Act, not | ||
later than December 1, 2021. The initial tax rate applies beginning | ||
January 1, 2022. | ||
SECTION 13. (a) Notwithstanding Section 164.0101, Tax | ||
Code, as added by this Act, a person is not required to hold a permit | ||
under that section to engage in business as a retailer of | ||
e-cigarettes in this state until January 1, 2022. | ||
(b) The comptroller of public accounts shall prescribe the | ||
form and content of an application for a permit under Section | ||
164.0101, Tax Code, as added by this Act, and begin accepting | ||
applications for the permit not later than October 1, 2021. | ||
SECTION 14. This Act takes effect September 1, 2021. |