Bill Text: TX HB2153 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to a single local use tax rate as an alternative to combined local use tax rates for computing the amount of local use taxes remote sellers are required to collect and to the allocation of tax revenue collected at that rate.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2019-05-17 - Effective on . . . . . . . . . . . . . . . October 1, 2019 [HB2153 Detail]
Download: Texas-2019-HB2153-Introduced.html
Bill Title: Relating to a single local use tax rate as an alternative to combined local use tax rates for computing the amount of local use taxes remote sellers are required to collect and to the allocation of tax revenue collected at that rate.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2019-05-17 - Effective on . . . . . . . . . . . . . . . October 1, 2019 [HB2153 Detail]
Download: Texas-2019-HB2153-Introduced.html
86R2765 BEF-F | ||
By: Burrows | H.B. No. 2153 |
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relating to a single local use tax rate as an alternative to | ||
combined local use tax rates for computing the amount of local use | ||
taxes remote sellers are required to collect and to the allocation | ||
of tax revenue collected at that rate. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The purpose of this Act is to provide an | ||
optional, simplified means of computing the amount of local use tax | ||
remote sellers are required to collect following the decision of | ||
the United States Supreme Court in South Dakota v. Wayfair, Inc., | ||
138 S. Ct. 2080 (2018). | ||
SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended | ||
by adding Section 151.0595 to read as follows: | ||
Sec. 151.0595. SINGLE LOCAL TAX RATE FOR REMOTE SELLERS. | ||
(a) In this section, "remote seller" means a seller whose only | ||
activities in this state are described by Section 151.107(a)(4) or | ||
(5). | ||
(b) A remote seller required to collect and remit one or | ||
more local use taxes in connection with a sale of a taxable item | ||
made by the remote seller shall compute the amount to collect and | ||
remit using: | ||
(1) the combined rate of all applicable local use | ||
taxes authorized or governed by Title 3; or | ||
(2) at the remote seller's election, the single local | ||
use tax rate published in the Texas Register as required by | ||
Subsection (d). | ||
(c) A remote seller who elects under Subsection (b)(2) to | ||
use the single local use tax rate shall notify the comptroller of | ||
the election before using that rate. The election applies to all | ||
sales of taxable items made by the remote seller unless the remote | ||
seller revokes the election by notifying the comptroller. Notice to | ||
the comptroller under this subsection must be in the form and manner | ||
provided by the comptroller. | ||
(d) The single local use tax rate effective in a calendar | ||
year is equal to the estimated average rate of local sales and use | ||
taxes imposed in this state during the preceding state fiscal year, | ||
as determined under Subsection (e). Before the beginning of a | ||
calendar year, the comptroller shall publish in the Texas Register | ||
notice of the single local use tax rate that will be in effect for | ||
that calendar year. | ||
(e) As soon as practicable after the end of a state fiscal | ||
year, the comptroller shall determine the estimated average rate of | ||
local sales and use taxes imposed in this state during the preceding | ||
state fiscal year by: | ||
(1) dividing the total amount of net local sales and | ||
use taxes remitted to the comptroller under this section and Title 3 | ||
during that state fiscal year by the total amount of net state sales | ||
and use taxes remitted to the comptroller under this chapter during | ||
that state fiscal year; | ||
(2) multiplying the amount computed under Subdivision | ||
(1) by the rate provided by Section 151.051; and | ||
(3) rounding the amount computed under Subdivision (2) | ||
to the nearest .0025. | ||
(f) Notwithstanding Section 111.104(b), a purchaser may | ||
annually apply for a refund of any amount by which the amount of use | ||
tax computed using the rate described by Subsection (b)(2) and paid | ||
by the purchaser exceeds the amount the purchaser would have paid if | ||
that tax had been computed using the rate described by Subsection | ||
(b)(1). The comptroller may adopt rules regarding the procedure | ||
and proof required for the refund. | ||
(g) A person storing, using, or consuming in this state a | ||
taxable item purchased from a remote seller is not liable for any | ||
additional amount of local use tax authorized or governed by Title 3 | ||
if the remote seller elects under Subsection (b)(2) to use the | ||
single local use tax rate and the person pays to the remote seller | ||
the amount of local use tax computed on the purchase using the | ||
single local use tax rate. | ||
(h) The comptroller shall administer, collect, and enforce | ||
local use taxes computed using the single local use tax rate. | ||
(i) The comptroller shall apportion and distribute revenue | ||
from local use taxes computed using the single local use tax rate as | ||
provided by Section 403.107, Government Code. | ||
(j) The comptroller may adopt rules to administer this | ||
section. | ||
SECTION 3. Section 403.107, Government Code, is reenacted | ||
and amended to read as follows: | ||
Sec. 403.107. SINGLE LOCAL USE TAXES COLLECTED BY REMOTE | ||
SELLERS [ |
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deposit revenue remitted to the comptroller from taxes computed | ||
using the single local use tax rate under Section 151.0595(b)(2) | ||
[ |
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treasury and shall keep records of the amount of money deposited | ||
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subsection [ |
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eligible taxing units, as determined under Subsection (b) [ |
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shall distribute money held in trust [ |
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under this section to each eligible taxing unit in the amount and | ||
manner provided by [ |
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(b) A local taxing unit is an eligible taxing unit for | ||
purposes of [ |
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a sales and use tax authorized or governed by Title 3, Tax Code | ||
[ |
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(c) Subject to Subsection (d), the [ |
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transmit to each eligible taxing unit's treasurer, or to the | ||
officer performing the functions of that office, on a monthly | ||
[ |
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under Subsection (a) [ |
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together with the pro rata share of any penalty or interest on | ||
delinquent taxes computed using the single local use tax rate | ||
[ |
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comptroller shall deduct two percent of [ |
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each taxing unit's share [ |
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services under this section and deposit that amount into the state | ||
treasury to the credit of the comptroller's operating fund. | ||
Interest earned on all deposits made in the state treasury under | ||
this section shall be credited to the general revenue fund. | ||
(d) The comptroller shall retain [ |
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share of money held in trust under Subsection (a) [ |
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transmitted [ |
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From the amounts retained [ |
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the comptroller may make refunds for overpayments of taxes computed | ||
using the single local use tax rate, make refunds to purchasers as | ||
provided by Section 151.0595(f), Tax Code, and [ |
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(a) [ |
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(e) The [ |
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the percentage of total sales and use tax allocations made pursuant | ||
to Title 3, [ |
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taxes governed by any provision of Title 3, [ |
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each eligible taxing unit. The comptroller shall determine each | ||
eligible taxing unit's share of the money held in trust from | ||
deposits under Subsection (a) for that month by applying the | ||
percentage computed under this subsection for the eligible taxing | ||
unit [ |
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trust from deposits for that month [ |
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(f) The comptroller may combine an eligible taxing unit's | ||
share of the money held in trust under Subsection (a) [ |
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other money [ |
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[ |
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(g) The comptroller may adopt rules to administer this | ||
section. | ||
SECTION 4. Sections 151.059 and 151.107(c), Tax Code, as | ||
added by Chapter 291 (H.B. 2215), Acts of the 71st Legislature, | ||
Regular Session, 1989, are repealed. | ||
SECTION 5. The changes in law made by this Act do 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 6. (a) Not later than October 1, 2019, the | ||
comptroller shall adopt any rules necessary to implement this Act. | ||
(b) This Act does not require a remote seller, as defined by | ||
Section 151.0595, Tax Code, as added by this Act, to collect local | ||
use taxes on sales of taxable items made before October 1, 2019. | ||
SECTION 7. This Act takes effect September 1, 2019. |