Bill Text: TX HB3875 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to establishing certain facilitators of sale, lease, or rental transactions as retailers engaged in business in this state for purposes of collection of the use tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-31 - Referred to Ways & Means [HB3875 Detail]
Download: Texas-2017-HB3875-Introduced.html
85R11173 CJC-F | ||
By: Springer | H.B. No. 3875 |
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relating to establishing certain facilitators of sale, lease, or | ||
rental transactions as retailers engaged in business in this state | ||
for purposes of collection of the use tax. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 151.008(b), Tax Code, is amended to read | ||
as follows: | ||
(b) "Seller" and "retailer" include: | ||
(1) a person in the business of making sales at auction | ||
of tangible personal property owned by the person or by another; | ||
(2) a person who makes more than two sales of taxable | ||
items during a 12-month period, including sales made in the | ||
capacity of an assignee for the benefit of creditors or receiver or | ||
trustee in bankruptcy; | ||
(3) a person regarded by the comptroller as a seller or | ||
retailer under Section 151.024; | ||
(4) a hotel, motel, or owner or lessor of an office or | ||
residential building or development that contracts and pays for | ||
telecommunications services for resale to guests or tenants; | ||
(5) a person who engages in regular or systematic | ||
solicitation of sales of taxable items in this state by the | ||
distribution of catalogs, periodicals, advertising flyers, or | ||
other advertising, by means of print, radio, or television media, | ||
or by mail, telegraphy, telephone, computer data base, cable, | ||
optic, microwave, or other communication system for the purpose of | ||
effecting sales of taxable items; [ |
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(6) a person who, under an agreement with another | ||
person, is: | ||
(A) entrusted with possession of tangible | ||
personal property with respect to which the other person has title | ||
or another ownership interest; and | ||
(B) authorized to sell, lease, or rent the | ||
property without additional action by the person having title to or | ||
another ownership interest in the property; and | ||
(7) a person who is a marketplace provider as defined | ||
by Section 151.109. | ||
SECTION 2. Subchapter D, Chapter 151, Tax Code, is amended | ||
by adding Section 151.109 to read as follows: | ||
Sec. 151.109. MARKETPLACE PROVIDERS. (a) In this section, | ||
"marketplace provider" means a person who: | ||
(1) facilitates the sale, lease, or rental of the | ||
tangible personal property of a retailer that is not the person to a | ||
purchaser in this state in any manner, including by the use of a | ||
catalog or an Internet website; | ||
(2) directly or indirectly collects from a purchaser | ||
in this state receipts derived from the sale, lease, or rental of | ||
the retailer's tangible personal property to the purchaser and | ||
transmits those receipts to the retailer, other than any amount the | ||
person is authorized to retain as a fee for facilitating the sale, | ||
lease, or rental; and | ||
(3) is engaged in business in this state by means of | ||
any of the activities listed in Section 151.107(a). | ||
(b) A marketplace provider's facilitation of a sale, lease, | ||
or rental described by Subsection (a)(1) that results in a sale, | ||
lease, or rental by the other retailer is considered the making of a | ||
sale by the marketplace provider for purposes of Sections | ||
151.008(a) and 151.103. Notwithstanding Section 151.103, the | ||
marketplace provider is not required to collect a use tax imposed | ||
under this subchapter that is due from a purchaser if the retailer | ||
for whom the marketplace provider facilitates the sale, lease, or | ||
rental collects the tax from the purchaser. | ||
(c) For purposes of Subsection (b), a marketplace provider | ||
may presume that a retailer registered with the comptroller under | ||
Section 151.106 collects the use tax from a purchaser. | ||
(d) Subject to Subsection (e), a marketplace provider is not | ||
subject to liability under Subchapter L for failing to collect or | ||
remit the appropriate amount of use tax if, in determining the | ||
amount, the marketplace provider relies exclusively on information | ||
provided by the retailer for whom the marketplace provider | ||
facilitates the sale, lease, or rental of the tangible personal | ||
property on which the tax is due. | ||
(e) Subsection (d) does not apply if the marketplace | ||
provider holds a substantial ownership interest in the retailer for | ||
whom the marketplace provider facilitated the sale, lease, or | ||
rental of tangible personal property, or the retailer holds a | ||
substantial ownership interest in the marketplace provider. For | ||
purposes of this subsection, "ownership" and "substantial" have the | ||
meanings assigned by Section 151.107(d). | ||
(f) The comptroller may adopt rules necessary to implement | ||
and administer this section, including rules establishing the | ||
requirements for an entity to be considered a marketplace provider. | ||
SECTION 3. Section 151.403(b), Tax Code, is amended to read | ||
as follows: | ||
(b) A retailer engaged in business in this state as provided | ||
by Section 151.107 or 151.109 [ |
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with respect to the use tax. | ||
SECTION 4. 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 5. This Act takes effect September 1, 2017. |