Bill Text: TX HB211 | 2021-2022 | 87th Legislature | Engrossed
Bill Title: Relating to sales and use taxes on e-cigarette vapor products; imposing taxes.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Engrossed - Dead) 2021-05-10 - Received from the House [HB211 Detail]
Download: Texas-2021-HB211-Engrossed.html
By: Thierry, Burrows, Noble, Sanford | H.B. No. 211 |
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relating to sales and use taxes on e-cigarette vapor products; | ||
imposing taxes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The legislature finds that: | ||
It is in the state's interest to implement consistent and | ||
effective taxation on nicotine-based consumer products and set | ||
appropriate tax rates based on the risk associated with the | ||
different types of new nicotine and tobacco products we see in | ||
today's marketplace. | ||
SECTION 2. 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 AND USE OF PROCEEDS. The | ||
comptroller shall deposit the proceeds from taxes imposed under | ||
this chapter as follows: | ||
(1) 20 percent to the credit of an account in the | ||
general revenue fund administered by the Department of State Health | ||
Services, which may be appropriated to the department only for the | ||
purpose of administering youth vaping prevention and awareness | ||
programs; and | ||
(2) the remainder to the credit of the general revenue | ||
fund. | ||
SECTION 3. This Act takes effect September 1, 2021. |