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A BILL TO BE ENTITLED
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AN ACT
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relating to imposing a tax on animal-tested cosmetics; providing a |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle E, Title 2, Tax Code, is amended by |
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adding Chapter 166 to read as follows: |
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CHAPTER 166. TAX ON ANIMAL-TESTED COSMETICS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 166.0001. DEFINITIONS. In this chapter: |
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(1) "Animal-tested cosmetic" means a cosmetic that has |
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been tested by internal or external application to or exposure to |
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the skin, eyes, or other body part of a live nonhuman vertebrate for |
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purposes of evaluating the safety or efficacy of the cosmetic. |
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(2) "Cosmetic" has the meaning assigned by Section 321 |
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of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Section 301 |
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et seq.). |
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(3) "Retailer" means a person, other than a |
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manufacturer, distributor, or wholesaler, who receives, stores, |
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mixes, compounds, or manufactures animal-tested cosmetics and who |
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sells or otherwise distributes animal-tested cosmetics in this |
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state to the ultimate consumer. |
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Sec. 166.0002. RULES. The comptroller may adopt rules |
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necessary for the implementation of this chapter and the collection |
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of taxes imposed by this chapter, including the identification of |
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animal-tested cosmetics. |
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SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX |
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Sec. 166.0051. TAX IMPOSED ON ANIMAL-TESTED COSMETICS. (a) |
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A tax is imposed on the sale by a retailer of an animal-tested |
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cosmetic in this state. |
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(b) The rate of the tax imposed by this section is 2.25 |
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percent of the sales price of an animal-tested cosmetic. |
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Sec. 166.0052. PAYMENT OF TAX. (a) The retailer or other |
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person selling animal-tested cosmetics in this state to the |
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ultimate consumer shall pay the tax imposed by this chapter. |
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(b) On or before the 25th day of each month, the person |
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responsible for paying the tax shall send to the comptroller the |
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amount of tax due under this chapter for the preceding month. |
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Sec. 166.0053. REPORTS. On or before the 25th day of each |
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month, the person responsible for paying the tax under this chapter |
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shall file with the comptroller a report stating: |
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(1) the amount of animal-tested cosmetics sold in this |
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state by the retailer; and |
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(2) any other information required by the comptroller. |
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Sec. 166.0054. RECORDS. (a) The person responsible for |
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paying the tax under this chapter shall keep a complete record of: |
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(1) the amount of animal-tested cosmetics sold in this |
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state by the retailer; and |
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(2) any other information required by the comptroller. |
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(b) A record required by this section must be kept or |
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maintained for at least two years after the date the record is made. |
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SUBCHAPTER C. SALES PERMITS |
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Sec. 166.0101. SALES PERMITS. (a) The comptroller shall |
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issue to an applicant who qualifies under Section 166.0102 a |
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separate permit for each place of business in this state. |
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(b) The holder of a permit shall display it conspicuously in |
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the place of business to which it applies. |
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(c) A permit is valid only for the person and the place of |
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business to which it applies and is not assignable. |
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(d) A permit issued under this chapter must be renewed |
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annually. |
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Sec. 166.0102. APPLICATION FOR PERMIT. (a) A person |
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desiring to sell animal-tested cosmetics to the ultimate consumer |
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shall file with the comptroller an application for a permit for each |
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place of business. |
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(b) The application must: |
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(1) be on a form prescribed by the comptroller; |
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(2) state the name under which the applicant transacts |
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or intends to transact business; |
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(3) give the address of the place of business to which |
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the permit is to apply; |
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(4) contain any other information required by the |
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comptroller; and |
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(5) be signed by the applicant or a person authorized |
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to act on behalf of the applicant. |
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SUBCHAPTER D. PENALTIES |
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Sec. 166.0151. INTEREST ON DELINQUENT TAX. A tax imposed by |
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this chapter that is delinquent draws interest as provided by |
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Section 111.060. |
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Sec. 166.0152. PENALTY. (a) A person who is responsible |
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for paying the tax imposed by this chapter and who fails to file a |
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report as required by this chapter or does not pay the tax when it is |
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due forfeits to the state a penalty of 25 percent of the amount of |
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the delinquent tax. |
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(b) The minimum penalty under this section is $1. |
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SUBCHAPTER E. DISPOSITION OF REVENUE |
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Sec. 166.0201. DISPOSITION OF REVENUE. The revenue from |
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the tax imposed by this chapter shall be deposited to the credit of |
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the general revenue fund. |
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SECTION 2. Not later than December 1, 2017, the comptroller |
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of public accounts shall adopt rules necessary for the |
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implementation and administration of Chapter 166, Tax Code, as |
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added by this Act. |
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SECTION 3. Chapter 166, Tax Code, as added by this Act, |
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applies to an animal-tested cosmetic sold in this state on or after |
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January 1, 2018. An animal-tested cosmetic sold before January 1, |
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2018, is governed by the law in effect when the animal-tested |
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cosmetic was sold, and that law is continued in effect for that |
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purpose. |
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SECTION 4. (a) Except as provided by Subsection (b) of this |
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section, this Act takes effect January 1, 2018. |
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(b) Section 2 of this Act takes effect September 1, 2017. |