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.