Bill Text: TX HB1144 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to sales and use taxes on e-cigarette vapor products to benefit the child health plan program; imposing taxes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-04-09 - Left pending in committee [HB1144 Detail]
Download: Texas-2019-HB1144-Introduced.html
| 86R5300 BEF-F | ||
| By: Thierry | H.B. No. 1144 | |
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| relating to sales and use taxes on e-cigarette vapor products to | ||
| benefit the child health plan program; 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-CIGARETTE VAPOR PRODUCTS | ||
| Sec. 164.0001. DEFINITIONS. In this chapter: | ||
| (1) "E-cigarette" has the meaning assigned by Section | ||
| 161.081, Health and Safety Code. | ||
| (2) "Vapor product" means a consumable nicotine liquid | ||
| solution or other material containing nicotine suitable for use in | ||
| an e-cigarette. | ||
| Sec. 164.0002. E-CIGARETTE VAPOR PRODUCT SALES TAX. (a) A | ||
| tax is imposed on each sale of a vapor product in this state. | ||
| (b) The tax rate is five cents for each milliliter or | ||
| fractional part of a milliliter of vapor product sold. | ||
| (c) The tax imposed under this section is in addition to the | ||
| tax imposed under Subchapter C, Chapter 151. The 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 VAPOR PRODUCT USE TAX. (a) A | ||
| tax is imposed on the storage, use, or other consumption in this | ||
| state of a vapor product purchased from a retailer for storage, use, | ||
| or other consumption in this state. | ||
| (b) The tax rate is five cents for each milliliter or | ||
| fractional part of a milliliter of vapor product stored, used, or | ||
| otherwise consumed in this state. | ||
| (c) The tax imposed under this section is in addition to the | ||
| tax imposed under Subchapter D, Chapter 151. The tax imposed under | ||
| this section does not apply to the storage, use, or other | ||
| consumption of a vapor 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 a vapor 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 volume of vapor | ||
| products sold by the seller during the reporting period; | ||
| (2) for use tax purposes, the volume of vapor products | ||
| sold by the retailer during the reporting period for storage, use, | ||
| or other consumption in this state; | ||
| (3) the volume of vapor 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 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) the volume of vapor products sold in this state | ||
| during each reporting period; | ||
| (2) the volume of vapor products, including the | ||
| constituent parts of vapor products, purchased from every source | ||
| during each reporting period; | ||
| (3) all sales and use taxes, and any money represented | ||
| to be sales or use tax, collected during each reporting period; and | ||
| (4) any other information required by the comptroller. | ||
| Sec. 164.0007. DISPOSITION AND USE OF PROCEEDS. The | ||
| comptroller shall deposit the proceeds from taxes imposed under | ||
| this chapter in the general revenue fund. The proceeds may be | ||
| appropriated only to the Health and Human Services Commission for | ||
| the purpose of providing health benefits coverage under the child | ||
| health plan program established under Chapter 62, Health and Safety | ||
| Code. | ||
| SECTION 2. This Act takes effect September 1, 2019. | ||
