Bill Text: TX HB5089 | 2023-2024 | 88th Legislature | Comm Sub
Bill Title: Relating to the location at which certain sales are consummated for purposes of local sales and use taxes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-05-02 - Committee report sent to Calendars [HB5089 Detail]
Download: Texas-2023-HB5089-Comm_Sub.html
88R21926 BEF-F | |||
By: Meyer | H.B. No. 5089 | ||
Substitute the following for H.B. No. 5089: | |||
By: Button | C.S.H.B. No. 5089 |
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relating to the location at which certain sales are consummated for | ||
purposes of local sales and use taxes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 321.002(a)(3)(A), Tax Code, is amended | ||
to read as follows: | ||
(A) "Place of business of the retailer" means an | ||
established outlet, office, or location operated by the retailer or | ||
the retailer's agent or employee for the purpose of receiving | ||
orders for taxable items and includes any location at which three or | ||
more orders are received by the retailer during a calendar year. | ||
The term does not include a computer server, Internet protocol | ||
address, domain name, website, or software application. A | ||
warehouse, storage yard, or manufacturing plant is not a "place of | ||
business of the retailer" unless at least three orders are received | ||
by the retailer during the calendar year at the warehouse, storage | ||
yard, or manufacturing plant. | ||
SECTION 2. Section 321.002(a), Tax Code, is amended by | ||
amending Subdivision (1) and adding Subdivisions (1-a), (1-b), (4), | ||
and (5) to read as follows: | ||
(1) "Active economic development agreement" means an | ||
agreement under Chapter 380, 381, 504, or 505, Local Government | ||
Code, under which the local government made payments on or before | ||
January 1, 2023, based on local sales and use tax collections. | ||
(1-a) "Additional municipal sales and use tax" means | ||
only the additional tax authorized by Section 321.101(b). | ||
(1-b) "Affiliated group" has the meaning assigned by | ||
Section 171.0001. | ||
(4) "Principal business location" means the business | ||
location where the decision makers of a business conduct the daily | ||
affairs of the organization. | ||
(5) "Small business" means a sales tax permit holder | ||
that has: | ||
(A) its principal business location in this | ||
state; | ||
(B) not more than 20 employees, including all | ||
employees of each member of an affiliated group that includes the | ||
permit holder; and | ||
(C) total combined gross receipts from the sale | ||
of tangible personal property and services in the preceding twelve | ||
calendar months of less than $500,000, including the gross receipts | ||
of each member of an affiliated group that includes the permit | ||
holder. | ||
SECTION 3. Section 321.203, Tax Code, is amended by | ||
amending Subsections (b), (c), (c-1), (d), and (e-1) and adding | ||
Subsections (o), (p), and (q) to read as follows: | ||
(b) Except as otherwise provided by this section, the sale | ||
of a taxable item by a small business is consummated at the | ||
principal business location of the small business [ |
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(c) Each [ |
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other than a small business is consummated at the place of business | ||
of the retailer in this state where the retailer [ |
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the order, provided that the order is placed in person by the | ||
purchaser or lessee of the taxable item at the place of business of | ||
the retailer in this state where the retailer [ |
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order. | ||
(c-1) If Subsections (b) and (c) do [ |
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not apply, the sale is consummated at the location in this state to | ||
which the item is shipped or delivered or at which possession is | ||
taken by the purchaser [ |
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[ |
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[ |
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(d) If [ |
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sale is consummated at: | ||
(1) the place of business of the retailer in this state | ||
where the order is received; or | ||
(2) if the order is not received at a place of business | ||
of the retailer, the place of business from which the retailer's | ||
agent or employee who took the order operates. | ||
(e-1) Except as otherwise provided by Subsection (f), (g), | ||
(g-1), (g-2), (g-3), (h), (i), (j), (k), (m), [ |
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a sale of a taxable item made by a marketplace seller through a | ||
marketplace as provided by Section 151.0242 is consummated at the | ||
location in this state to which the item is shipped or delivered or | ||
at which possession is taken by the purchaser. | ||
(o) An order is received at the location where all of the | ||
information from the purchaser necessary to determine whether the | ||
order can be accepted has been received by or on behalf of the | ||
seller. The order is not received at a location where the order is | ||
subsequently accepted, completed, or fulfilled. | ||
(p) A retailer that has an active economic development | ||
agreement with a municipality and has a single place of business in | ||
this state that is within the municipality may elect to collect and | ||
report the sales tax authorized by this chapter based on the | ||
location of the retailer's single place of business. An election | ||
under this subsection is binding on the retailer and the purchaser. | ||
This subsection expires December 31, 2028. | ||
(q) A retailer that has an active economic development | ||
agreement with a municipality may elect to collect and report the | ||
sales tax authorized by this chapter based on the location of the | ||
retailer within the municipality from which an item is shipped | ||
directly to the purchaser or the purchaser's designee. An election | ||
under this subsection is binding on the retailer and the purchaser. | ||
This subsection expires December 31, 2028. | ||
SECTION 4. The heading to Section 323.203, Tax Code, is | ||
amended to read as follows: | ||
Sec. 323.203. CONSUMMATION OF SALE: CERTAIN PROVISIONS OF | ||
MUNICIPAL SALES AND USE TAX APPLICABLE. | ||
SECTION 5. Section 323.203(a), Tax Code, is amended to read | ||
as follows: | ||
(a) Sections 321.002 and 321.203 apply to the taxes | ||
authorized by this chapter in the same manner as those sections | ||
apply to the taxes authorized under Chapter 321 [ |
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SECTION 6. The following laws are repealed: | ||
(1) Section 3853.202(d), Special District Local Laws | ||
Code; and | ||
(2) Sections 323.203(b), (c), (c-1), (c-4), (c-5), | ||
(d), (e), (e-1), (f), (g), (g-1), (g-2), (g-3), (h), (i), (j), (k), | ||
and (m), Tax Code. | ||
SECTION 7. 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 8. This Act takes effect January 1, 2024. |