Bill Text: TX SB596 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to imposing a tax on certain sweetened beverages and ingredients used to make certain sweetened beverages; providing a penalty.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-02-08 - Referred to Finance [SB596 Detail]

Download: Texas-2017-SB596-Introduced.html
  85R7478 GRM-D
 
  By: Lucio S.B. No. 596
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to imposing a tax on certain sweetened beverages and
  ingredients used to make certain sweetened beverages; providing a
  penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by
  adding Chapter 165 to read as follows:
  CHAPTER 165.  TAX ON SWEETENED BEVERAGES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 165.0001.  DEFINITIONS. In this chapter:
               (1)  "Retailer" means a person, other than a
  manufacturer, distributor, or wholesaler, who receives, stores,
  mixes, compounds, or manufactures sweetened beverages and who sells
  or otherwise distributes sweetened beverages in this state to the
  ultimate consumer.
               (2)  "Sweetened beverage" means a carbonated or
  non-carbonated nonalcoholic beverage that contains natural or
  artificial sweeteners. The term does not include:
                     (A)  a beverage that:
                           (i)  is sweetened only by a sweetener that
  does not add calories to the beverage;
                           (ii)  is 100 percent vegetable or fruit
  juice by volume;
                           (iii)  contains more than one-half of one
  percent alcohol per ounce; or
                           (iv)  is intended by the manufacturer for
  consumption by an infant and is commonly referred to as "infant
  formula";
                     (B)  milk or milk products that do not contain
  sweeteners that add calories to the milk or milk products;
                     (C)  non-carbonated water or water without any
  additional substances except for minerals and flavoring agents that
  do not add calories to the water; or
                     (D)  coffee or tea that does not contain
  sweeteners that add calories to the coffee or tea.
               (3)  "Sweetened beverage powder" means a solid mixture
  of basic ingredients used to make, mix, or compound sweetened
  beverages.
               (4)  "Sweetened beverage syrup" means a liquid mixture
  of basic ingredients used to make, mix, or compound sweetened
  beverages.
         Sec. 165.0002.  RULES.  The comptroller may adopt rules
  necessary for the implementation of this chapter and the collection
  of taxes imposed by this chapter.
  SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
         Sec. 165.0051.  TAX IMPOSED ON SWEETENED BEVERAGES. (a) A
  tax is imposed on the sale to a retailer of a sweetened beverage in
  this state.
         (b)  A tax is imposed on the importation into this state of a
  sweetened beverage for sale in this state to the ultimate consumer.
         (c)  Except as provided by Subsection (d), the rate of the
  tax imposed by this section is one cent for each ounce or fractional
  part of an ounce of sweetened beverage.
         (d)  On January 1 of each year, the comptroller shall
  increase the rate of the tax prescribed by Subsection (c) or in
  effect the preceding year, whichever is greater, by a percentage
  equal to the percentage increase in the most recent annual revised
  Consumer Price Index for All Urban Consumers, as published by the
  federal Bureau of Labor Statistics of the United States Department
  of Labor.
         Sec. 165.0052.  TAX IMPOSED ON SWEETENED BEVERAGE POWDER.
  (a) A tax is imposed on the sale to a retailer of sweetened beverage
  powder in this state.
         (b)  A tax is imposed on the importation into this state of
  sweetened beverage powder for sale in this state to the ultimate
  consumer.
         (c)  Except as provided by Subsection (d), the rate of the
  tax imposed by this section is one cent for the greater of:
               (1)  each ounce or fractional part of an ounce of
  sweetened beverage that may be produced from the powder by
  following the manufacturer's directions; or
               (2)  each ounce or fractional part of an ounce of
  sweetened beverage actually produced by the retailer, as determined
  by the comptroller.
         (d)  On January 1 of each year, the comptroller shall
  increase the rate of the tax prescribed by Subsection (c) or in
  effect the preceding year, whichever is greater, by a percentage
  equal to the percentage increase in the most recent annual revised
  Consumer Price Index for All Urban Consumers, as published by the
  federal Bureau of Labor Statistics of the United States Department
  of Labor.
         Sec. 165.0053.  TAX IMPOSED ON SWEETENED BEVERAGE SYRUP.
  (a) A tax is imposed on the sale to a retailer of sweetened beverage
  syrup in this state.
         (b)  A tax is imposed on the importation into this state of
  sweetened beverage syrup for sale in this state to the ultimate
  consumer.
         (c)  Except as provided by Subsection (d), the rate of the
  tax imposed by this section is one cent for the greater of:
               (1)  each ounce or fractional part of an ounce of
  sweetened beverage that may be produced from the syrup by following
  the manufacturer's directions; or
               (2)  each ounce or fractional part of an ounce of
  sweetened beverage actually produced by the retailer, as determined
  by the comptroller.
         (d)  On January 1 of each year, the comptroller shall
  increase the rate of the tax prescribed by Subsection (c) or in
  effect the preceding year, whichever is greater, by a percentage
  equal to the percentage increase in the most recent annual revised
  Consumer Price Index for All Urban Consumers, as published by the
  federal Bureau of Labor Statistics of the United States Department
  of Labor.
         Sec. 165.0054.  EXEMPTION FROM TAX.  The tax imposed by this
  chapter does not apply to:
               (1)  sweetened beverages that:
                     (A)  the comptroller determines are unsalable; or
                     (B)  this state is prohibited from taxing under
  federal law; or
               (2)  a sale of sweetened beverages, sweetened beverage
  powder, or sweetened beverage syrup that occurs after a sale that is
  taxed under this chapter.
         Sec. 165.0055.  IMPACT OF TAX.  The ultimate consumer or user
  in this state bears the impact of the tax imposed by this chapter.
  If another person pays the tax, the amount of the tax is added to the
  price to the ultimate consumer or user.
         Sec. 165.0056.  PAYMENT OF TAX. (a) The manufacturer,
  distributor, wholesaler, or other person selling sweetened
  beverages, sweetened beverage syrup, or sweetened beverage powder
  in this state to a retailer or importing sweetened beverages,
  sweetened beverage syrup, or sweetened beverage powder for sale in
  this state to the ultimate consumer shall pay the tax imposed by
  this chapter.
         (b)  On or before the 25th day of each month, the person
  responsible for paying the tax shall send to the comptroller the
  amount of tax due under this chapter for the preceding month.
         Sec. 165.0057.  REPORTS. On or before the 25th day of each
  month, the person responsible for paying the tax under this chapter
  shall file with the comptroller a report stating:
               (1)  the volume of sweetened beverages, sweetened
  beverage powder, and sweetened beverage syrup sold in this state to
  retailers;
               (2)  the volume of sweetened beverages, sweetened
  beverage powder, and sweetened beverage syrup imported into this
  state for sale in this state to the ultimate consumer; and
               (3)  any other information required by the comptroller.
         Sec. 165.0058.  RECORDS.  (a) The person responsible for
  paying the tax under this chapter shall keep a complete record of:
               (1)  the volume of sweetened beverages, sweetened
  beverage powder, and sweetened beverage syrup sold in this state to
  retailers;
               (2)  the volume of sweetened beverages, sweetened
  beverage powder, and sweetened beverage syrup imported into this
  state for sale in this state to the ultimate consumer; and
               (3)  any other information required by the comptroller.
         (b)  A record required by this section must be kept or
  maintained for at least two years after the date the record is made.
  SUBCHAPTER C. SALES PERMITS
         Sec. 165.0101.  SALES PERMITS. (a) The comptroller shall
  issue to an applicant who qualifies under Section 165.0102 a
  separate permit for each place of business in this state.
         (b)  The holder of a permit shall display it conspicuously in
  the place of business to which it applies.
         (c)  A permit is valid only for the person and the place of
  business to which it applies and is non-assignable.
         (d)  A permit issued under this chapter must be renewed
  annually.
         Sec. 165.0102.  APPLICATION FOR PERMIT. (a) A person
  desiring to sell to a retailer, or import for sale in this state to
  the ultimate consumer, sweetened beverages, sweetened beverage
  powder, or sweetened beverage syrup shall file with the comptroller
  an application for a permit for each place of business.
         (b)  The application must:
               (1)  be on a form prescribed by the comptroller;
               (2)  state the name under which the applicant transacts
  or intends to transact business;
               (3)  give the address of the place of business to which
  the permit is to apply;
               (4)  contain any other information required by the
  comptroller; and
               (5)  be signed by the applicant or a person authorized
  to act on behalf of the applicant.
  SUBCHAPTER D.  PENALTIES
         Sec. 165.0151.  INTEREST ON DELINQUENT TAX. A tax imposed by
  this chapter that is delinquent draws interest as provided by
  Section 111.060.
         Sec. 165.0152.  PENALTY.  (a) A person who is responsible
  for paying the tax imposed by this chapter and who fails to file a
  report as required by this chapter or does not pay the tax when it is
  due forfeits to the state a penalty of 25 percent of the amount of
  the delinquent tax.
         (b)  The minimum penalty under this section is $1.
  SUBCHAPTER E. DISPOSITION OF REVENUE
         Sec. 165.0201.  DISPOSITION OF REVENUE. The revenue from
  the tax imposed by this chapter shall be deposited to the credit of
  the general revenue fund.
         SECTION 2.  Not later than December 1, 2017, the comptroller
  of public accounts shall adopt rules necessary for the
  implementation and administration of Chapter 165, Tax Code, as
  added by this Act.
         SECTION 3.  Chapter 165, Tax Code, as added by this Act,
  applies to a sweetened beverage, sweetened beverage powder, or
  sweetened beverage syrup sold in this state or imported into this
  state on or after January 1, 2018. A sweetened beverage, sweetened
  beverage powder, or sweetened beverage syrup sold or imported
  before January 1, 2018, is governed by the law in effect when the
  sweetened beverage, sweetened beverage powder, or sweetened
  beverage syrup was sold or imported, and that law is continued in
  effect for that purpose.
         SECTION 4.  (a) Except as provided by Subsection (b) of this
  section, this Act takes effect January 1, 2018.
         (b)  Section 2 of this Act takes effect September 1, 2017.
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