Bill Text: TX HB211 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Comm_Sub.html
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-Comm_Sub.html
87R19644 SRA-F | |||
By: Thierry, Burrows, Noble | H.B. No. 211 | ||
Substitute the following for H.B. No. 211: | |||
By: Shine | C.S.H.B. No. 211 |
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relating to sales and use taxes on e-cigarette vapor products and | ||
alternative nicotine products and the computation of taxes imposed | ||
on modified risk tobacco products; imposing taxes; reducing the | ||
rates of certain taxes imposed on modified risk tobacco products. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by | ||
adding Chapters 164 and 164A to read as follows: | ||
CHAPTER 164. TAX ON E-CIGARETTE VAPOR PRODUCTS AND ALTERNATIVE | ||
NICOTINE PRODUCTS | ||
Sec. 164.0001. DEFINITIONS. In this chapter: | ||
(1) "Alternative nicotine product" means a | ||
noncombustible product containing nicotine, but not containing | ||
tobacco leaf, that is intended for human consumption, whether | ||
chewed, absorbed, dissolved, inhaled, snorted, sniffed, or | ||
ingested by any other means. The term does not include an | ||
e-cigarette, a vapor product, a product regulated as a drug or | ||
device by the United States Food and Drug Administration, or a | ||
tobacco product as defined by Section 155.001. | ||
(2) "E-cigarette" has the meaning assigned by Section | ||
161.081, Health and Safety Code. | ||
(3) "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 seven 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 seven 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. ALTERNATIVE NICOTINE PRODUCT SALES TAX. (a) | ||
A tax is imposed on each sale of an alternative nicotine product in | ||
this state. | ||
(b) The tax rate is $1.22 for each ounce or fractional part | ||
of an ounce of alternative nicotine product sold. | ||
(c) The computation of the tax under this section is based | ||
on the net weight of an alternative nicotine product as listed by | ||
the manufacturer. | ||
(d) 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. 164.0005. ALTERNATIVE NICOTINE PRODUCT USE TAX. (a) A | ||
tax is imposed on the storage, use, or other consumption in this | ||
state of an alternative nicotine product purchased from a retailer | ||
for storage, use, or other consumption in this state. | ||
(b) The tax rate is $1.22 for each ounce or fractional part | ||
of an ounce of alternative nicotine product stored, used, or | ||
otherwise consumed in this state. | ||
(c) The computation of the tax under this section is based | ||
on the net weight of an alternative nicotine product as listed by | ||
the manufacturer. | ||
(d) 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 an alternative nicotine product unless the tax | ||
imposed under Subchapter D, Chapter 151, applies to the storage, | ||
use, or other consumption. | ||
Sec. 164.0006. 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 or alternative nicotine product under | ||
Chapter 151 also applies to the sales or use tax imposed under this | ||
chapter. | ||
Sec. 164.0007. 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 and the net weight of alternative nicotine products sold | ||
by the seller during the reporting period; | ||
(2) for use tax purposes, the volume of vapor products | ||
and the net weight of alternative nicotine products sold by the | ||
retailer during the reporting period for storage, use, or other | ||
consumption in this state; | ||
(3) the volume of vapor products and the net weight of | ||
alternative nicotine 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. 164.0008. 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 and the net weight of | ||
alternative nicotine products sold in this state during each | ||
reporting period; | ||
(2) the volume of vapor products, including the | ||
constituent parts of vapor products, and the net weight of | ||
alternative nicotine 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. 164.0009. DISPOSITION OF PROCEEDS. The comptroller | ||
shall deposit the proceeds from taxes imposed under this chapter in | ||
the general revenue fund. | ||
CHAPTER 164A. COMPUTATION OF TAX IMPOSED ON CERTAIN PRODUCTS | ||
CONTAINING TOBACCO OR NICOTINE | ||
Sec. 164A.0001. DEFINITION. In this chapter, "modified | ||
risk tobacco product" has the meaning assigned by 21 U.S.C. Section | ||
387k(b). | ||
Sec. 164A.0002. TAX RATE APPLICABLE TO MODIFIED RISK | ||
TOBACCO PRODUCT. The rate of a tax applicable to a modified risk | ||
tobacco product for which an order under 21 U.S.C. Section 387k(g) | ||
is effective is one-half the rate provided by Section 154.021(b), | ||
155.021(b), 155.0211(b) or (c), 164.0002(b), 164.0003(b), | ||
164.0004(b), or 164.0005(b) that would otherwise apply to the | ||
product, notwithstanding the rates specified by those sections. | ||
Sec. 164A.0003. RULES. The comptroller may adopt rules to | ||
implement this chapter. | ||
SECTION 2. The change in law made by this Act does not | ||
affect tax liability accruing before the effective date of this | ||
Act. That liability continues in effect as if this Act had not been | ||
enacted, and the former law is continued in effect for the | ||
collection of taxes due and for civil and criminal enforcement of | ||
the liability for those taxes. | ||
SECTION 3. This Act takes effect September 1, 2021. |