Bill Text: TX SB1712 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to sales and use taxes on e-cigarettes and nicotine products; imposing taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2021-03-26 - Referred to Finance [SB1712 Detail]

Download: Texas-2021-SB1712-Introduced.html
  87R12432 SRA-F
 
  By: Springer S.B. No. 1712
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to sales and use taxes on e-cigarettes and nicotine
  products; imposing taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by
  adding Chapter 164 to read as follows:
  CHAPTER 164. TAX ON E-CIGARETTES AND NICOTINE PRODUCTS
         Sec. 164.0001.  DEFINITIONS. In this chapter:
               (1)  "E-cigarette" has the meaning assigned by Section
  161.081, Health and Safety Code.
               (2)  "Nicotine product" means an item that contains
  nicotine and is not taxed under Chapter 154 or 155.
         Sec. 164.0002.  E-CIGARETTE AND NICOTINE PRODUCT SALES TAX.
  (a) A tax is imposed on each sale of an e-cigarette or nicotine
  product in this state.
         (b)  The tax rate is 10 percent of the sales price of an
  e-cigarette or nicotine product sold.
         (c)  A tax imposed under this section is in addition to the
  tax imposed under Subchapter C, Chapter 151. A 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 AND NICOTINE PRODUCT USE TAX.
  (a) A tax is imposed on the storage, use, or other consumption in
  this state of an e-cigarette or nicotine product purchased from a
  retailer for storage, use, or other consumption in this state.
         (b)  The tax rate is 10 percent of the sales price of an
  e-cigarette or nicotine product stored, used, or otherwise consumed
  in this state.
         (c)  A tax imposed under this section is in addition to the
  tax imposed under Subchapter D, Chapter 151. A tax imposed under
  this section does not apply to the storage, use, or other
  consumption of an e-cigarette or nicotine 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 an e-cigarette or nicotine 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 amount of total
  receipts from e-cigarettes and nicotine products sold by the seller
  during the reporting period;
               (2)  for use tax purposes, the amount of total receipts
  from e-cigarettes and nicotine products sold by the retailer during
  the reporting period for storage, use, or other consumption in this
  state;
               (3)  the amount of the total sales prices of
  e-cigarettes and 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. 164.0006.  RECORDS. (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 keep a complete record of:
               (1)  all gross receipts from each sale to which this
  chapter applies occurring during each reporting period, along with
  documentation relating to those receipts;
               (2)  all purchases of e-cigarettes and nicotine
  products, including the constituent parts of e-cigarettes and
  nicotine products, from every source during each reporting period,
  along with documentation relating to those purchases;
               (3)  all sales and use taxes, and any money represented
  to be sales or use tax, collected under this chapter during each
  reporting period; and
               (4)  any other information required by the comptroller.
         (b)  A person shall keep the records required by Subsection
  (a) for the period required by Section 151.025(b).
         Sec. 164.0007.  DISPOSITION OF PROCEEDS. The comptroller
  shall deposit the proceeds from taxes imposed under this chapter to
  the credit of the general revenue fund.
         SECTION 2.  This Act takes effect September 1, 2021.
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