AN ACT
1-1 relating to the administration, collection, and enforcement by the
1-2 comptroller of public accounts of various taxes and fees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subdivision (8), Section 101.003, Tax Code, as
1-5 amended by Section 1.01, Chapter 486, and Section 3.27, Chapter
1-6 685, Acts of the 73rd Legislature, 1993, is reenacted to read as
1-7 follows:
1-8 (8) "Taxpayer" means a person liable for a tax, fee,
1-9 assessment, or other amount imposed by a statute or under the
1-10 authority of a statutory function administered by the comptroller.
1-11 SECTION 2. Subsection (a), Section 111.0047, Tax Code, as
1-12 amended by Section 4.08, Chapter 107, and Section 32, Chapter 284,
1-13 Acts of the 73rd Legislature, 1993, is amended to read as follows:
1-14 (a) If a person fails to comply with any provision of this
1-15 title[, with any provision of Chapter 466, Government Code,] or
1-16 with a rule of the comptroller adopted under this title [or Chapter
1-17 466, Government Code], the comptroller, after a hearing, may revoke
1-18 or suspend any permit or license issued to the person.
1-19 SECTION 3. Subsection (a), Section 111.0048, Tax Code, as
1-20 amended by Section 4.09, Chapter 107, and Section 33, Chapter 284,
1-21 Acts of the 73rd Legislature, 1993, is amended to read as follows:
1-22 (a) A new permit or license may not be issued to a former
1-23 holder of a revoked permit or license unless the comptroller is
2-1 satisfied that the person will comply with the provisions of this
2-2 title [and Chapter 466, Government Code] and the rules of the
2-3 comptroller relating to this title [and Chapter 466, Government
2-4 Code].
2-5 SECTION 4. (a) Subsection (a), Section 111.006, Tax Code,
2-6 is amended to conform to Section 1, Chapter 175, Acts of the 74th
2-7 Legislature, 1995, and Section 4, Chapter 351, Acts of the 74th
2-8 Legislature, 1995, to read as follows:
2-9 (a) The [Except as provided by Subsection (d), the]
2-10 following matter is confidential and may not be used publicly,
2-11 opened to public inspection, or disclosed except as permitted under
2-12 Subsection (b), [or] (d), or (e):
2-13 (1) a federal tax return or federal tax return
2-14 information required to have been submitted to the comptroller with
2-15 a state tax return or report; and
2-16 (2) all information secured, derived, or obtained by
2-17 the comptroller or the attorney general during the course of an
2-18 examination of the taxpayer's books, records, papers, officers, or
2-19 employees, including an examination of the business affairs,
2-20 operations, source of income, profits, losses, or expenditures of
2-21 the taxpayer.
2-22 (b) Subsection (d), Section 111.006, Tax Code, as added by
2-23 Section 4, Chapter 351, Acts of the 74th Legislature, 1995, is
2-24 relettered as Subsection (e), Section 111.006, Tax Code.
2-25 SECTION 5. Section 111.018, Tax Code, is amended by adding
3-1 Subsection (c) to read as follows:
3-2 (c) Publication in a newspaper of a notice of sale of seized
3-3 property under Subsection (b)(4) is not required if the estimated
3-4 value of the property to be sold is less than $40,000. The
3-5 comptroller may notify potential buyers of seized property the
3-6 value of which is estimated to be less than $40,000 by any means
3-7 reasonable and cost-effective to the state under the circumstances.
3-8 SECTION 6. Subsection (b), Section 111.061, Tax Code, is
3-9 amended to read as follows:
3-10 (b) Except where another penalty for fraud or intent to
3-11 evade the tax is specifically provided, an additional penalty of 50
3-12 percent of the tax due shall be imposed if it is determined that:
3-13 (1) the failure to pay the tax or file a report when
3-14 due was a result of fraud or an intent to evade the tax; or
3-15 (2) the taxpayer alters, destroys, or conceals any
3-16 record, document, or thing, or presents to the comptroller any
3-17 altered or fraudulent record, document, or thing, or otherwise
3-18 engages in fraudulent conduct, for the apparent purpose of
3-19 affecting the course or outcome of an audit, investigation,
3-20 redetermination, or other proceeding before the comptroller[, an
3-21 additional penalty of 50 percent of the tax due shall be imposed].
3-22 SECTION 7. Section 111.107, Tax Code, is amended to read as
3-23 follows:
3-24 Sec. 111.107. When Refund or Credit is Permitted. Except as
3-25 otherwise expressly provided, a person may request a refund or a
4-1 credit or the comptroller may make a refund or issue a credit for
4-2 the overpayment of a tax imposed by this title at any time before
4-3 the expiration of the period during which the comptroller may
4-4 assess a deficiency for the tax and not thereafter unless the
4-5 refund or credit is requested:
4-6 (1) under Subchapter B of Chapter 112 and the refund
4-7 is made or the credit is issued under a court order;
4-8 (2) under the provision of Section 111.104(c)(3)
4-9 applicable to a refund claim filed after a jeopardy or deficiency
4-10 determination becomes final;
4-11 (3) under Chapter 153, except Section 153.1195(e),
4-12 153.121(d), 153.2225(e), or 153.224(d); or
4-13 (4) under Section 151.318(g) or (n).
4-14 SECTION 8. Subsection (f), Section 111.206, Tax Code, is
4-15 amended to read as follows:
4-16 (f) In this section:
4-17 (1) "Federal[, "federal] regulatory agency" includes
4-18 the United States Internal Revenue Service.
4-19 (2) "Administrative proceeding" includes an audit by
4-20 the United States Internal Revenue Service.
4-21 SECTION 9. Section 112.060, Tax Code, is amended by amending
4-22 Subsections (a), (b), and (d) and adding Subsection (e) to read as
4-23 follows:
4-24 (a) If a suit under this subchapter results in a final
4-25 determination that all or part of the money paid under protest was
5-1 unlawfully demanded by the public official and belongs to the
5-2 taxpayer, the comptroller [treasurer] shall credit the proper
5-3 amount, with the pro rata interest earned on that amount, against
5-4 any other amount finally determined to be due to the state from the
5-5 taxpayer according to information in the custody of the comptroller
5-6 [treasurer] and shall refund the remainder by the issuance of a
5-7 refund warrant.
5-8 (b) A refund warrant shall be written and signed by the
5-9 comptroller [and countersigned by the treasurer].
5-10 (d) The comptroller shall issue each tax refund warrant and
5-11 [treasurer shall return to the comptroller each tax refund warrant
5-12 issued, and the comptroller] shall deliver it to the person
5-13 entitled to receive it.
5-14 (e) The comptroller may not refund an amount of tax to a
5-15 taxpayer or person who collects taxes from another person unless
5-16 the taxpayer or person refunds all the taxes to the person from
5-17 whom the taxes were collected.
5-18 SECTION 10. Subsection (b), Section 113.006, Tax Code, is
5-19 amended to read as follows:
5-20 (b) One tax lien notice is sufficient to cover all taxes of
5-21 the same nature, including penalty and interest computed by
5-22 reference to the amount of tax, that may have accrued before or
5-23 [accrue] after the filing of the notice.
5-24 SECTION 11. Section 151.0035, Tax Code, is amended to read
5-25 as follows:
6-1 Sec. 151.0035. "DATA PROCESSING SERVICE." "Data processing
6-2 service" includes word processing, data entry, data retrieval, data
6-3 search, information compilation, payroll and business accounting
6-4 data production, and other computerized data and information
6-5 storage or manipulation. "Data processing service" also includes
6-6 the use of a computer or computer time for data processing whether
6-7 the processing is performed by the provider of the computer or
6-8 computer time or by the purchaser or other beneficiary of the
6-9 service. "Data processing service" does not include the
6-10 transcription of medical dictation by a medical transcriptionist.
6-11 SECTION 12. Subsection (b), Section 151.0047, Tax Code, is
6-12 amended by adding Subdivision (3) to read as follows:
6-13 (3) "New product" means a product that:
6-14 (A) has different product properties and a
6-15 different commercial application than the product previously
6-16 manufactured or processed by the production unit that produced the
6-17 previous product; and
6-18 (B) is not created by straining or purifying an
6-19 existing product or by making cosmetic changes, such as adding or
6-20 removing color or odor, to or from an existing product.
6-21 SECTION 13. Subsection (c), Section 151.0048, Tax Code, is
6-22 amended to read as follows:
6-23 (c) In this section, "contractor" means a person who makes
6-24 an improvement on real estate and who, as a necessary or incidental
6-25 part of the service, incorporates tangible personal property into
7-1 the property improved. The term includes a builder, developer,
7-2 speculative builder, or other person acting as a builder to improve
7-3 residential real property.
7-4 SECTION 14. Subsection (c), Section 151.007, Tax Code, is
7-5 amended to read as follows:
7-6 (c) "Sales price" or "receipts" does not include any of the
7-7 following if separately identified to the customer by such means as
7-8 an invoice, billing, sales slip or ticket, or contract:
7-9 (1) a cash discount allowed on the sale;
7-10 (2) the amount charged for tangible personal property
7-11 returned by a customer if the total amount charged is refunded by
7-12 cash or credit;
7-13 (3) a refund of the charges for the performance of a
7-14 taxable service;
7-15 (4) finance, carrying and service charges, or interest
7-16 from credit extended on sales of taxable items under a conditional
7-17 sales contract or other contract providing for the deferred payment
7-18 of the purchase price;
7-19 (5) the value of tangible personal property that:
7-20 (A) is taken by a seller in trade as all or part
7-21 of the consideration for a sale of a taxable item; and
7-22 (B) is of a type of property sold by the seller
7-23 in the regular course of business;
7-24 (6) the face value of United States coin or currency
7-25 in a sale of that coin or currency in which the total consideration
8-1 given by the purchaser exceeds the face value of the coin or
8-2 currency; or
8-3 (7) a voluntary gratuity or a reasonable mandatory
8-4 charge for the service of a meal or food products, including soft
8-5 drinks and candy, for immediate human consumption when the service
8-6 charge is separated from the sales price of the meal or food
8-7 product and identified as a gratuity or tip and when the total
8-8 amount of the service charge is disbursed by the employer to
8-9 employees who customarily and regularly provide the service.
8-10 SECTION 15. Subchapter A, Chapter 151, Tax Code, is amended
8-11 by adding Section 151.01032 to read as follows:
8-12 Sec. 151.01032. "TELEPHONE PREPAID CALLING CARD."
8-13 "Telephone prepaid calling card" means a card or other item,
8-14 including an access code, that represents the right to make one or
8-15 more telephone calls for which payment is made in incremental
8-16 amounts and before the call is initiated. The term "telephone
8-17 prepaid calling card" does not include a card sold by mechanical
8-18 means for consideration of one dollar or less.
8-19 SECTION 16. Section 151.009, Tax Code, is amended to read as
8-20 follows:
8-21 Sec. 151.009. "Tangible Personal Property". "Tangible
8-22 personal property" means personal property that can be seen,
8-23 weighed, measured, felt, or touched or that is perceptible to the
8-24 senses in any other manner, and, for the purposes of this chapter,
8-25 the term includes a computer program and a telephone prepaid
9-1 calling card.
9-2 SECTION 17. Section 151.0103, Tax Code, is amended to read
9-3 as follows:
9-4 Sec. 151.0103. Telecommunications Services. For the
9-5 purposes of this title only, "telecommunications services" means
9-6 the electronic or electrical transmission, conveyance, routing, or
9-7 reception of sounds, signals, data, or information utilizing wires,
9-8 cable, radio waves, microwaves, satellites, fiber optics, or any
9-9 other method now in existence or that may be devised, including but
9-10 not limited to long-distance telephone service. The term does not
9-11 include:
9-12 (1) the [The] storage of data or information for
9-13 subsequent retrieval or the processing, or reception and
9-14 processing, of data or information intended to change its form or
9-15 content; or
9-16 (2) the sale or use of a telephone prepaid calling
9-17 card. [are not included in "telecommunications services."]
9-18 SECTION 18. Section 151.057, Tax Code, is amended to read as
9-19 follows:
9-20 Sec. 151.057. SERVICES BY EMPLOYEES. The following services
9-21 are not taxable under this chapter:
9-22 (1) a [A] service performed by an employee for his
9-23 employer in the regular course of business, within the scope of the
9-24 employee's duties, and for which the employee is paid his regular
9-25 wages or salary;[, or]
10-1 (2) a service performed by a temporary help service
10-2 for an employer to supplement the employer's existing work force on
10-3 a temporary basis, when the service is normally performed by the
10-4 employer's own employees, the employer provides all supplies and
10-5 equipment necessary, and the help is under the direct or general
10-6 supervision of the employer to whom the help is furnished; or
10-7 (3) a service performed by assigned employees of a
10-8 staff leasing company for a client company under a written contract
10-9 that provides for shared employment responsibilities between the
10-10 staff leasing company and the client company for the assigned
10-11 employees, most of whom must have been previously employed by the
10-12 client company. The comptroller shall prescribe by rule the
10-13 minimum percentage of assigned employees that must have been
10-14 previously employed by the client company, the minimum time period
10-15 the assigned employees must have been employed by the client
10-16 company prior to the commencement of its contract, and such other
10-17 criteria as the comptroller may deem necessary to properly
10-18 implement this section[, is not taxable under this chapter].
10-19 SECTION 19. Section 151.154, Tax Code, is amended by adding
10-20 Subsection (f) to read as follows:
10-21 (f) A purchaser who issues a resale certificate for the
10-22 purchase of a taxable item is liable for payment of the sales tax
10-23 on the purchase price of the taxable item if the purchaser uses the
10-24 item as a part of the excludable consideration on the purchase of
10-25 another taxable item.
11-1 SECTION 20. Subsection (c), Section 151.310, Tax Code, is
11-2 amended to read as follows:
11-3 (c) An organization that qualifies for an exemption under
11-4 Subsection (a)(1) or (a)(2) of this section, and each bona fide
11-5 chapter of the organization, may hold two tax-free sales or
11-6 auctions under this subsection during a calendar year and each
11-7 tax-free sale or auction may continue for one day only. The sale
11-8 of a taxable item the sales price of which is $5,000 or less by a
11-9 qualified organization or chapter of the organization at a tax-free
11-10 sale or auction is exempted from the sales tax imposed by
11-11 Subchapter C of this chapter. The storage, use, or consumption of
11-12 a taxable item that is acquired from a qualified organization or
11-13 chapter of the organization at a tax-free sale or auction and that
11-14 is exempted under this subsection from the taxes imposed by
11-15 Subchapter C of this chapter is exempted from the use tax imposed
11-16 by Subchapter D of this chapter until the item is resold or
11-17 subsequently transferred.
11-18 SECTION 21. Subdivision (2), Subsection (c), Section
11-19 151.317, Tax Code, is amended to read as follows:
11-20 (2) "Commercial use" means use by a person engaged in
11-21 selling, warehousing, or distributing a commodity or a professional
11-22 or personal service, but does not include:
11-23 (A) use by a person engaged in:
11-24 (i) processing tangible personal property
11-25 for sale as tangible personal property, other than preparation or
12-1 storage of food for immediate consumption;
12-2 (ii) exploring for, producing, or
12-3 transporting, a material extracted from the earth;
12-4 (iii) agriculture, including dairy or
12-5 poultry operations and pumping for farm or ranch irrigation;
12-6 (iv) electrical processes such as
12-7 electroplating, electrolysis, and cathodic protection; [or]
12-8 (v) the off-wing processing, overhaul, or
12-9 repair of a jet turbine engine or its parts for a certificated or
12-10 licensed carrier of persons or property; or
12-11 (vi) providing, under contracts with or on
12-12 behalf of the United States government or foreign governments,
12-13 defense or national security-related electronics, classified
12-14 intelligence data processing and handling systems, or
12-15 defense-related platform modifications or upgrades; or
12-16 (B) a direct or indirect use, consumption, or
12-17 loss of electricity by an electric utility engaged in the purchase
12-18 of electricity for resale.
12-19 SECTION 22. Section 151.318, Tax Code, is amended by adding
12-20 Subsection (r) to read as follows:
12-21 (r) For the purposes of this section, the manufacturing of
12-22 computer software begins with the design and writing of the code or
12-23 program for the software and includes the testing or demonstration
12-24 of the software.
12-25 SECTION 23. Subsections (a) and (c), Section 151.321, Tax
13-1 Code, are amended to read as follows:
13-2 (a) A taxable item sold by a qualified student organization
13-3 and for which the sales price is $5,000 or less is exempted from
13-4 the taxes imposed by Subchapter C if the student organization:
13-5 (1) sells the item [items] at a sale that may last for
13-6 one day only and the primary purpose of which is to raise funds for
13-7 the organization; and
13-8 (2) holds not more than one sale described by
13-9 Subdivision (1) each month for which an [the] exemption is claimed
13-10 for an item sold.
13-11 (c) A student organization must file with the comptroller a
13-12 certification issued by the institution, college, or university
13-13 described in Subsection (b)(1) showing that the organization is
13-14 affiliated with the institution, college, or university. [The
13-15 certification is valid for two years after the date that the
13-16 comptroller receives it.]
13-17 SECTION 24. Subsection (f), Section 151.330, Tax Code, is
13-18 amended to read as follows:
13-19 (f) Services performed for use both within and outside this
13-20 state are exempt to the extent the services are for use outside
13-21 this state and made taxable on or after September 1, 1987.
13-22 SECTION 25. Section 151.353, Tax Code, is amended by
13-23 amending Subsection (a) and adding Subsection (d) to read as
13-24 follows:
13-25 (a) Court reporting services relating to the preparation of
14-1 a document or other record in a civil or criminal suit by a notary
14-2 public or a court reporter licensed by the State of Texas Court
14-3 Reporters Certification Board are exempted from the taxes imposed
14-4 by this chapter if the document is:
14-5 (1) prepared for the use of a person participating in
14-6 a suit or the court in which a suit or administrative proceeding is
14-7 brought; and
14-8 (2) sold to a person participating in the suit.
14-9 (d) Court reporting services by a video photographer who is
14-10 not a court reporter and who videotapes or films a deposition,
14-11 testimony, discovery document, or statement of fact pertaining to a
14-12 civil or criminal suit are exempted from the taxes imposed by this
14-13 chapter if the services are provided and sold as described by
14-14 Subsections (a)(1) and (2).
14-15 SECTION 26. Section 152.001, Tax Code, is amended by
14-16 amending Subdivisions (2), (3), (4), and (15) and adding
14-17 Subdivisions (17), (18), and (19) to read as follows:
14-18 (2) "Retail sale" means a sale of a motor vehicle
14-19 except:
14-20 (A) the [a] sale of a new motor vehicle in which
14-21 the purchaser is a franchised dealer who is authorized by law and
14-22 by franchise agreement to offer the vehicle for sale as a new motor
14-23 vehicle and [holds a general distinguishing number issued pursuant
14-24 to the terms of Article 6686, Revised Statutes,] who acquires the
14-25 [a] vehicle either for the exclusive purpose of sale in the manner
15-1 provided by law or for purposes allowed under Chapter 503,
15-2 Transportation Code [resale]; [or]
15-3 (B) the [a] sale of a vehicle other than a new
15-4 motor vehicle in which the purchaser is a dealer who holds a
15-5 dealer's general distinguishing number issued under Chapter 503,
15-6 Transportation Code, and who acquires the vehicle either for the
15-7 exclusive purpose of resale in the manner provided by law or for
15-8 purposes allowed under Chapter 503, Transportation Code; or
15-9 (C) the sale to a franchised dealer of a new
15-10 motor vehicle removed from the franchised dealer's inventory for
15-11 the purpose of entering into a contract to lease the vehicle to
15-12 another person if, immediately after executing the lease contract,
15-13 the franchised dealer transfers title of the vehicle and assigns
15-14 the lease contract to the lessor of the vehicle [that is operated
15-15 under and in accordance with Article 6686, Revised Civil Statutes
15-16 of Texas, 1925, as amended].
15-17 (3) "Motor Vehicle" includes:
15-18 (A) a self-propelled vehicle designed to
15-19 transport persons or property on a public highway;
15-20 (B) a trailer and semitrailer, including a van,
15-21 flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or
15-22 converter gear; and
15-23 (C) a house trailer as defined by Chapter 501,
15-24 Transportation Code [the Certificate of Title Act (Article 6687-1,
15-25 Vernon's Texas Civil Statutes)].
16-1 (4) "Motor Vehicle" does not include:
16-2 (A) a device moved only by human power;
16-3 (B) a device used exclusively on stationary
16-4 rails or tracks;
16-5 (C) road-building machinery;
16-6 (D) a mobile office;
16-7 (E) a vehicle with respect to which the
16-8 certificate of title has been surrendered in exchange for:
16-9 (i) a salvage certificate issued pursuant
16-10 to Chapter 501, Transportation Code [the Certificate of Title Act
16-11 (Article 6687-1, Vernon's Texas Civil Statutes)];
16-12 (ii) a certificate of authority issued
16-13 pursuant to Chapter 683, Transportation Code [Article V, Chapter
16-14 741, Acts of the 67th Legislature, Regular Session, 1981 (Article
16-15 4477-9a, Vernon's Texas Civil Statutes)];
16-16 (iii) a nonrepairable motor vehicle
16-17 certificate of title issued pursuant to Chapter 501, Transportation
16-18 Code [Section 37A, Certificate of Title Act (Article 6687-1,
16-19 Vernon's Texas Civil Statutes), as added by H.B. No. 2151, Acts of
16-20 the 74th Legislature, Regular Session, 1995];
16-21 (iv) an ownership document issued by
16-22 another state if the document is comparable to a document issued
16-23 pursuant to Subparagraph (i), (ii), or (iii); or
16-24 (F) a vehicle that has been declared a total
16-25 loss by an insurance company pursuant to the settlement or
17-1 adjustment of a claim.
17-2 (15) "Seller-financed sale" means a retail sale of a
17-3 motor vehicle by a dealer licensed under Chapter 503,
17-4 Transportation Code [Article 6686, Revised Statutes], in which the
17-5 seller collects all or part of the total consideration in periodic
17-6 payments and retains a lien on the motor vehicle until all payments
17-7 have been received. The term does not include a:
17-8 (A) retail sale of a motor vehicle in which a
17-9 person other than the seller provides the consideration for the
17-10 sale and retains a lien on the motor vehicle as collateral;
17-11 (B) lease; or
17-12 (C) rental.
17-13 (17) "Lessor" means a person who acquires title to a
17-14 new motor vehicle for the purpose of leasing the vehicle to another
17-15 person.
17-16 (18) "New motor vehicle" means a motor vehicle that,
17-17 without regard to mileage, has not been the subject of a retail
17-18 tax.
17-19 (19) "Franchised dealer" has the meaning assigned the
17-20 term by Chapter 503, Transportation Code.
17-21 SECTION 27. Subsection (a), Section 152.028, Tax Code, is
17-22 amended to read as follows:
17-23 (a) A use tax is imposed on the operator of a motor vehicle
17-24 that was purchased tax-free under Section 152.092 [152.090] of this
17-25 code and that is brought back into this state for use on the public
18-1 highways of this state. The tax is imposed at the time the motor
18-2 vehicle is brought back into this state.
18-3 SECTION 28. Section 152.0411, Tax Code, is amended by
18-4 amending Subsections (a) and (e) and adding Subsection (f) to read
18-5 as follows:
18-6 (a) Except as provided by this section, a [A] seller who
18-7 makes a sale subject to the sales tax imposed by Section 152.021
18-8 shall add the amount of the tax to the sales price, and when the
18-9 amount of the tax is added:
18-10 (1) it is a debt of the purchaser to the seller until
18-11 paid; and
18-12 (2) if unpaid, it is recoverable at law in the same
18-13 manner as the original sales price.
18-14 (e) This section applies only to a sale in which the seller
18-15 is a motor vehicle dealer who holds a dealer license issued under
18-16 Chapter 503, Transportation Code [pursuant to the authority of
18-17 Article 6686, Revised Statutes], or the Texas Motor Vehicle
18-18 Commission Code (Article 4413(36), Vernon's Texas Civil Statutes).
18-19 (f) This section does not apply to the sale of a motor
18-20 vehicle with a gross weight in excess of 11,000 pounds. The seller
18-21 of a motor vehicle with a gross weight in excess of 11,000 pounds
18-22 shall maintain records of the sale in the manner and form, and
18-23 containing the information, required by the comptroller.
18-24 SECTION 29. Subsection (e), Section 152.063, Tax Code, is
18-25 amended to read as follows:
19-1 (e) For a retail sale for which the seller receives full
19-2 payment at the time of sale, the seller shall keep, at the seller's
19-3 principal office for at least four years from the date of the sale,
19-4 documentation of complete payment in the form of:
19-5 (1) a copy of the payment instrument or a receipt for
19-6 cash received; and
19-7 (2) a copy of the receipt for title application,
19-8 registration, and motor vehicle tax issued by the county tax
19-9 assessor-collector [or a written statement by the purchaser that:]
19-10 [(A) is signed and dated;]
19-11 [(B) indicates the date on which the seller
19-12 provided to the purchaser each of the documents necessary to apply
19-13 for the title, register the vehicle, and pay the motor vehicle
19-14 sales tax; and]
19-15 [(C) includes a statement that the seller
19-16 advised the purchaser that the purchaser must pay a tax to the
19-17 county tax assessor-collector].
19-18 SECTION 30. Subsections (c), (d), and (e), Section 152.0635,
19-19 Tax Code, are amended to read as follows:
19-20 (c) For retail sales paid in full at the time of sale, the
19-21 seller shall keep at the seller's principal office for at least
19-22 four years from the date of the sale documentation of complete
19-23 payment in the form of:
19-24 (1) a copy of the payment instrument or a receipt for
19-25 cash received; and
20-1 (2) a copy of the receipt for title application,
20-2 registration, and motor vehicle tax issued by the county tax
20-3 assessor-collector [or a statement by the purchaser that is signed
20-4 and dated and indicates the date that each of the documents
20-5 necessary to apply for the title, register the vehicle, and pay the
20-6 motor vehicle sales tax were provided to the purchaser by the
20-7 seller].
20-8 (d) [The document required under Subsection (c)(2) shall
20-9 also include a statement that the seller advised the purchaser that
20-10 the purchaser must pay a tax to the county tax assessor-collector.]
20-11 [(e)] For sales for resale, the seller shall keep at the
20-12 seller's principal office for at least four years from the date of
20-13 the sale the purchaser's written statement of resale on a form
20-14 prescribed by the comptroller.
20-15 SECTION 31. Subsection (d), Section 152.066, Tax Code, is
20-16 amended to read as follows:
20-17 (d) Except in the case of the gross receipts tax, interest
20-18 begins to accrue on delinquent taxes 60 days after the day on which
20-19 the joint statement [affidavit] was executed. Delinquent taxes on
20-20 gross rental receipts draw interest beginning 60 days from the due
20-21 date.
20-22 SECTION 32. Subsection (b), Section 152.069, Tax Code, is
20-23 amended to read as follows:
20-24 (b) The seller shall provide to the county tax
20-25 assessor-collector a joint statement [affidavit] as prescribed by
21-1 Section 152.062 in lieu of the motor vehicle sales tax imposed by
21-2 Section 152.021. The statement [affidavit] shall include the
21-3 seller's permit identification number issued by the comptroller.
21-4 SECTION 33. Subsections (b) and (g), Section 153.017, Tax
21-5 Code, are amended to read as follows:
21-6 (b) An agreement may provide for:
21-7 (1) determining the base state for motor fuel users;
21-8 (2) user records requirements;
21-9 (3) audit procedures;
21-10 (4) exchange of information;
21-11 (5) persons eligible for tax licensing;
21-12 (6) licensing and license revocation procedures,
21-13 permits, penalties, and fees;
21-14 (7) defining qualified motor vehicles;
21-15 (8) determining bonding procedures, types, and
21-16 amounts;
21-17 (9) specifying reporting requirements and periods;
21-18 (10) defining refund procedures and limitations,
21-19 including the payment of interest;
21-20 (11) defining uniform penalties, fees, and interest
21-21 rates;
21-22 (12) determining methods for collecting motor fuel
21-23 taxes and for collecting and forwarding [of] motor fuel taxes,
21-24 other than penalties, [and interest] due to another jurisdiction;
21-25 (13) the temporary remittal of funds equal to the
22-1 amount of the taxes[, penalties,] and interest due to another
22-2 jurisdiction but not otherwise collected, subject to appropriation
22-3 of funds for that purpose; and
22-4 (14) other provisions to facilitate the administration
22-5 of the agreement.
22-6 (g) The comptroller may segregate in a separate fund or
22-7 account the amount of motor fuel taxes, other than penalties,
22-8 estimated to be due to other jurisdictions, motor fuel taxes [or
22-9 otherwise] subject to refund during the fiscal year, [penalties and
22-10 interest on those taxes due other jurisdictions,] licensing fees,
22-11 and other costs collected under the agreement. On a determination
22-12 of an amount held that is due to be remitted to another
22-13 jurisdiction, the comptroller may issue a warrant or make an
22-14 electronic transfer of the amount as necessary to carry out the
22-15 purposes of the agreement. An auditing cost, membership fee, and
22-16 other cost associated with the agreement may be paid from interest
22-17 earned on funds segregated under this subsection. Any interest
22-18 earnings in excess of the costs associated with the agreement shall
22-19 be credited to general revenue.
22-20 SECTION 34. Subsection (e), Section 153.119, Tax Code, is
22-21 amended to read as follows:
22-22 (e) A person who exports or loses by fire or other accident
22-23 100 or more gallons of gasoline on which the tax has been paid, or
22-24 sells gasoline in any quantity to the United States government for
22-25 the exclusive use of that government on which the tax has been
23-1 paid, may file a claim for a refund of the net tax paid to the
23-2 state in the manner provided by this chapter or as the comptroller
23-3 may direct. [A permitted distributor who establishes proof
23-4 satisfactory to the comptroller of export, loss by accident, or
23-5 sale to the United States, may take a credit for the net amount of
23-6 the tax paid to the state on any subsequent monthly report and tax
23-7 payment made to the comptroller within one year after the date of
23-8 the exportation, loss, or sale.]
23-9 SECTION 35. Section 153.1195, Tax Code, is amended to read
23-10 as follows:
23-11 Sec. 153.1195. [REFUNDS AND] CREDITS FOR BAD DEBTS. (a) A
23-12 permitted distributor may take a credit on the monthly report to be
23-13 filed with [against taxes to be remitted to] the comptroller [or
23-14 claim a refund on taxes paid to the comptroller] if:
23-15 (1) the distributor has paid the taxes imposed by this
23-16 subchapter on gasoline sold on account;
23-17 (2) the distributor determines that the account is
23-18 uncollectable and worthless; and
23-19 (3) the account is written off as a bad debt on the
23-20 accounting books of the distributor.
23-21 (b) The amount of the credit that may be taken [or refund
23-22 that may be claimed] under Subsection (a) of this section may equal
23-23 but may not exceed the amount of taxes paid on the gasoline to
23-24 which the written-off account applies.
23-25 (c) If, after a credit is taken [or a refund is paid] under
24-1 Subsection (a) of this section, the account on which the credit [or
24-2 refund] was based is paid, or if the comptroller otherwise
24-3 determines that the credit [or refund] was not authorized by
24-4 Subsection (a) of this section, the unpaid taxes shall be paid by
24-5 the distributor taking the credit [or to whom the refund was made],
24-6 plus a penalty of 10 percent of the amount of the unpaid taxes and
24-7 interest at the rate provided by Section 111.060 of this code
24-8 beginning on the day that the credit was taken [or the refund was
24-9 made].
24-10 (d) This section does not apply to a sale of gasoline that
24-11 is delivered into the fuel supply tank of a motor vehicle or a
24-12 motorboat and for which payment is made through the use and
24-13 acceptance of a credit card.
24-14 (e) A credit under this section must be taken before the
24-15 expiration of the applicable limitation period as provided by
24-16 Chapter 111 of this code.
24-17 SECTION 36. Section 153.121, Tax Code, is amended by adding
24-18 Subsection (d) to read as follows:
24-19 (d) A permitted distributor that determines taxes were
24-20 erroneously reported and remitted or that paid more taxes than were
24-21 due this state because of a mistake of fact or law may take a
24-22 credit on the monthly tax report on which the error has occurred
24-23 and tax payment made to the comptroller. The credit must be taken
24-24 before the expiration of the applicable period of limitation as
24-25 provided by Chapter 111.
25-1 SECTION 37. Subsection (f), Section 153.206, Tax Code, is
25-2 amended to read as follows:
25-3 (f) If diesel fuel is purchased, in a single delivery of
25-4 5,000 gallons or more, or in lesser quantities where required by
25-5 city ordinance, by any person for the purpose of resale, the
25-6 seller, supplier [distributor], or broker shall sell the product to
25-7 the retailer or any other person purchasing the product on the
25-8 basis of temperature-corrected gallonage to 60 degrees Fahrenheit
25-9 and the tax shall be computed and paid over to the state on the
25-10 temperature-corrected basis. All other sales shall be reported to
25-11 the comptroller on the basis of gross or volumetric gallons of
25-12 taxable diesel fuel sold.
25-13 SECTION 38. Section 153.2225, Tax Code, is amended to read
25-14 as follows:
25-15 Sec. 153.2225. [REFUNDS AND] CREDITS FOR BAD DEBTS. (a) A
25-16 permitted supplier may take a credit on the monthly report to be
25-17 filed with [against taxes to be remitted to] the comptroller [or
25-18 claim a refund on taxes paid to the comptroller] if:
25-19 (1) the supplier has paid the taxes imposed by this
25-20 subchapter on diesel fuel sold on account;
25-21 (2) the supplier determines that the account is
25-22 uncollectable and worthless; and
25-23 (3) the account is written off as a bad debt on the
25-24 accounting books of the supplier.
25-25 (b) The amount of the credit that may be taken [or refund
26-1 that may be claimed] under Subsection (a) of this section may equal
26-2 but may not exceed the amount of taxes paid on the diesel fuel to
26-3 which the written-off account applies.
26-4 (c) If, after a credit is taken [or a refund is paid] under
26-5 Subsection (a) of this section, the account on which the credit [or
26-6 refund] was based is paid, or if the comptroller otherwise
26-7 determines that the credit [or refund] was not authorized by
26-8 Subsection (a) of this section, the unpaid taxes shall be paid by
26-9 the supplier taking the credit [or to whom the refund was made],
26-10 plus a penalty of 10 percent of the amount of the unpaid taxes and
26-11 interest at the rate provided by Section 111.060 of this code
26-12 beginning on the day that the credit was taken [or the refund was
26-13 made].
26-14 (d) This section does not apply to a sale of diesel fuel
26-15 that is delivered into the fuel supply tank of a motor vehicle or
26-16 motorboat and for which payment is made through the use and
26-17 acceptance of a credit card.
26-18 (e) A credit under this section must be taken before the
26-19 expiration of the applicable limitation period as provided by
26-20 Chapter 111 of this code.
26-21 SECTION 39. Section 153.224, Tax Code, is amended by adding
26-22 Subsection (d) to read as follows:
26-23 (d) A permitted supplier or bonded user that determines
26-24 taxes were erroneously reported or that paid more taxes than were
26-25 due this state because of a mistake of fact or law may take a
27-1 credit on the supplier or bonded user tax report on which the error
27-2 has occurred and tax payment made to the comptroller. The credit
27-3 must be taken before the expiration of the applicable period of
27-4 limitation as provided by Chapter 111.
27-5 SECTION 40. Section 154.001, Tax Code, is amended to read as
27-6 follows:
27-7 Sec. 154.001. DEFINITIONS. In this chapter:
27-8 (1) "Bonded agent" means a person in this state who is
27-9 an agent of a person outside this state and receives cigarettes in
27-10 interstate commerce and stores the cigarettes for distribution or
27-11 delivery to distributors under orders from the person outside this
27-12 state.
27-13 (2) "Cigarette" means a roll for smoking:
27-14 (A) that is made of tobacco or tobacco mixed
27-15 with another ingredient and wrapped or covered with a material
27-16 other than tobacco; and
27-17 (B) that is not a cigar.
27-18 (3) "Common carrier" means a motor carrier registered
27-19 under Chapter 643, Transportation Code [Article 6675c, Revised
27-20 Statutes], or a motor carrier operating under a certificate issued
27-21 by the Interstate Commerce Commission or a successor agency to the
27-22 Interstate Commerce Commission.
27-23 (4) "Consumer" means a person who possesses cigarettes
27-24 for personal consumption.
27-25 (5) "Counterfeit stamp" means a sticker, label, print,
28-1 tag, or token that is used or is intended to be used to simulate a
28-2 stamp and that is not authorized or issued by the comptroller
28-3 [treasurer].
28-4 (6) "Distributor" means a person who:
28-5 (A) is authorized to purchase for the purpose of
28-6 making a first sale in this state cigarettes in unstamped packages
28-7 from manufacturers who distribute cigarettes in this state and to
28-8 stamp cigarette packages;
28-9 (B) ships, transports, imports into this state,
28-10 acquires, or possesses cigarettes and makes a first sale of the
28-11 cigarettes in this state; [or]
28-12 (C) manufactures or produces cigarettes; or
28-13 (D) is an importer or import broker.
28-14 (7) "Export warehouse" means a person in this state
28-15 who receives cigarettes in unstamped packages from manufacturers
28-16 and stores the cigarettes for the purpose of making sales to
28-17 authorized persons for resale, use, or consumption outside the
28-18 United States.
28-19 (8) "First sale" means, except as otherwise provided
28-20 by this chapter:
28-21 (A) the first transfer of possession in
28-22 connection with a purchase, sale, or any exchange for value of
28-23 cigarettes in intrastate commerce;
28-24 (B) the first use or consumption of cigarettes
28-25 in this state; or
29-1 (C) the loss of cigarettes in this state whether
29-2 through negligence, theft, or other unaccountable loss.
29-3 (9) "Importer" or "import broker" means a person who
29-4 ships, transports, or imports into this state cigarettes
29-5 manufactured or produced outside the United States for the purpose
29-6 of making a first sale in this state.
29-7 (10) [(8)] "Individual package of cigarettes" means a
29-8 package that contains not fewer than 10 cigarettes[:]
29-9 [(A) the smallest package of cigarettes
29-10 ordinarily manufactured for sale; or]
29-11 [(B) any size package of cigarettes taxed by the
29-12 United States].
29-13 (11) [(9)] "Manufacturer" means a person who
29-14 manufactures and sells cigarettes to a distributor.
29-15 (12) [(10)] "Manufacturer's representative" means a
29-16 person employed by a manufacturer to sell or distribute the
29-17 manufacturer's stamped cigarette packages.
29-18 (13) [(11)] "Permit holder" means a bonded agent,
29-19 distributor, wholesaler, or retailer required to obtain a permit
29-20 under Section 154.101.
29-21 (14) [(12)] "Place of business" means:
29-22 (A) a commercial business location [place] where
29-23 cigarettes are sold;
29-24 (B) a commercial business location [place] where
29-25 cigarettes are kept for sale or consumption or otherwise stored; or
30-1 (C) a vehicle from which cigarettes are sold.
30-2 (15) [(13)] "Previously used stamp" means a stamp that
30-3 has been used to show payment of a tax imposed by this chapter and
30-4 is again used, sold, or possessed for sale or use to show payment
30-5 of a tax imposed by this chapter.
30-6 (16) [(14)] "Retailer" means a person who engages in
30-7 the practice of selling cigarettes to consumers and includes the
30-8 owner of a coin-operated cigarette vending machine.
30-9 (17) [(15)] "Stamp" includes only a stamp that:
30-10 (A) is printed, manufactured, or made by
30-11 authority of the comptroller [treasurer];
30-12 (B) shows payment of the tax imposed by this
30-13 chapter; and
30-14 (C) is consecutively numbered and uniquely
30-15 identifiable as a Texas tax stamp.
30-16 (18) [(16)] "Wholesaler" means a person, including a
30-17 manufacturer's representative, who sells or distributes cigarettes
30-18 in this state for resale but who is not a distributor.
30-19 SECTION 41. The heading of Subchapter C, Chapter 154, Tax
30-20 Code, is amended to read as follows:
30-21 SUBCHAPTER C. TAX STAMPS [AND METERS]
30-22 SECTION 42. Section 154.050, Tax Code, is amended to read as
30-23 follows:
30-24 Sec. 154.050. PAYMENT. (a) The comptroller [treasurer]
30-25 shall require that payment in full for stamps [or meter settings]
31-1 be made within 30 days after the date stamps [or a set meter] and
31-2 an accompanying invoice from the comptroller [treasurer] are
31-3 received by the distributor, except that at the close of each
31-4 biennium, payment for stamps [or meter settings] purchased or
31-5 received on or before August 31 of that fiscal year shall be made
31-6 in full on or before August 31 of that fiscal year, providing that
31-7 such payment be received in the office of the comptroller
31-8 [treasurer] no later than August 31 of that fiscal year
31-9 notwithstanding any other statute regarding tax due dates to the
31-10 contrary.
31-11 (b) The comptroller [treasurer] may not ship stamps [or set
31-12 a meter] without advance payment under this section unless the
31-13 distributor has satisfied all requirements imposed under Section
31-14 154.051 [of this code].
31-15 (c) Payment for stamps [or meter settings] must be made by
31-16 cashier's check payable to the comptroller [treasurer], electronic
31-17 funds transfer to the comptroller [treasurer], or any other method
31-18 of payment authorized by the comptroller [treasurer].
31-19 (d) The dishonor of a check delivered to the comptroller
31-20 [treasurer] for payment of stamps constitutes a failure to pay the
31-21 tax when due.
31-22 SECTION 43. Subsections (a), (b), (c), (e) through (k), (n),
31-23 and (o), Section 154.051, Tax Code, are amended to read as follows:
31-24 (a) The cigarette tax recovery trust fund is a private trust
31-25 fund established outside the state treasury and as provided by this
32-1 section secures the payment of cigarette taxes by distributors who
32-2 contribute to the fund. The fund is composed of the total amount
32-3 in the separate accounts maintained in trust for all contributing
32-4 distributors as provided by this section. The assets of the fund,
32-5 including interest earned by those assets, are to be held in trust
32-6 for the benefit and protection of the state treasury, and may not
32-7 be diverted, distributed, or appropriated for any purpose other
32-8 than as provided by this section. Interest earned by a
32-9 distributor's account but not yet refunded to the distributor
32-10 pursuant to Subsection (d) shall, on a monthly basis, be paid to
32-11 the comptroller [treasurer] as provided by Subsection (b) or
32-12 credited to the distributor's account.
32-13 (b) The comptroller [treasurer] is the trustee of the fund
32-14 as provided by Section 404.073, Government Code, and shall manage
32-15 the fund as provided by this section. In investing the assets of
32-16 the fund, the comptroller [treasurer] has the obligations, duties,
32-17 and powers provided for the investment of state funds by Sections
32-18 404.021 through 404.0245 [404.025], Government Code, and by the
32-19 orders of the State Depository Board. The comptroller [treasurer]
32-20 shall receive five percent of the interest earned on all assets of
32-21 the fund as compensation for serving as trustee of the fund.
32-22 (c) A distributor who orders stamps [or requests a meter
32-23 setting] from the comptroller [state treasurer] under this chapter
32-24 without advance payment shall contribute to an account maintained
32-25 in the distributor's name in the fund money in the amount of each
33-1 allowance [discount] to which the distributor is entitled under
33-2 Section 154.052 [of this code]. When the money in the
33-3 distributor's account equals 20 percent of the designated amount of
33-4 stamps [and meter setting] requested by the distributor and
33-5 approved by the comptroller [treasurer] to be purchased in any one
33-6 month, the distributor's interest in the fund becomes vested.
33-7 (e) Until a distributor who orders stamps [or requests a
33-8 meter setting] without advance payment acquires a vested interest
33-9 in the fund, the comptroller [treasurer] may require the
33-10 distributor to post with the comptroller [treasurer] an irrevocable
33-11 letter of credit drawn in the form and amount specified by the
33-12 comptroller [treasurer] to secure the payment of cigarette taxes by
33-13 that distributor. The comptroller [treasurer] may not ship stamps
33-14 to [or set a meter for] a distributor not having a vested interest
33-15 in the fund without advance payment until the distributor posts the
33-16 required letter of credit.
33-17 (f) In addition to any other requirement under this section,
33-18 the comptroller [treasurer] as a condition for shipping stamps [or
33-19 setting a meter] without advance payment may:
33-20 (1) require a fiscal-year-end financial statement,
33-21 including a balance sheet and income statement verifiable as to its
33-22 accuracy or other financial information acceptable to the
33-23 comptroller [treasurer] and verifiable as to its accuracy;
33-24 (2) require indemnification from each officer,
33-25 director, and stockholder owning 10 percent or more of outstanding
34-1 stock, if the distributor is a corporation, from each partner, if
34-2 the distributor is a partnership, from each member or owner of a
34-3 joint venture or syndication, and from the owner of a sole
34-4 proprietorship;
34-5 (3) require the distributor to obtain and provide the
34-6 comptroller [treasurer] with a credit report from a credit
34-7 reporting agency acceptable to the comptroller [treasurer];
34-8 (4) require a distributor to increase the balance in
34-9 its account in the fund;
34-10 (5) require a distributor to post a letter of credit;
34-11 (6) reduce a distributor's credit time or amount; or
34-12 (7) take any other reasonable and necessary action to
34-13 protect the state treasury from loss due to the nonpayment of
34-14 cigarette taxes.
34-15 (g) If a distributor who has an account in the fund fails to
34-16 pay in full a tax imposed by this chapter by the due date, the
34-17 comptroller [treasurer], without prior notice to the distributor or
34-18 any other preliminary procedure, may seize any unaffixed stamps and
34-19 any stamped cigarette packages, up to and including the full amount
34-20 of unpaid tax. If the proceeds from the seizure do not satisfy the
34-21 total tax deficiency or the comptroller [treasurer] does not seize
34-22 any unaffixed stamps or stamped cigarette packages, the comptroller
34-23 [treasurer] may withdraw immediately from the fund an amount equal
34-24 to the amount of unpaid taxes due. The comptroller [treasurer]
34-25 shall first withdraw the amount from the account of the defaulting
35-1 distributor. The comptroller [treasurer] shall use the
35-2 comptroller's [treasurer's] best efforts to collect the tax due
35-3 from the defaulting distributor before withdrawing money from the
35-4 other accounts in the fund to satisfy the tax liability. If that
35-5 distributor's account does not contain sufficient money to satisfy
35-6 the tax liability in full, the comptroller [treasurer] shall
35-7 withdraw the additional amount necessary to satisfy that liability
35-8 from the other accounts in the fund in proportion to the balance of
35-9 each account, except that the withdrawal from any other
35-10 distributor's account in the fund is limited to an amount not
35-11 greater than 50 percent of the designated amount of stamps [and
35-12 meter settings] requested by the distributor under Subsection (c)
35-13 or of the amount required by the comptroller [treasurer] under
35-14 Subsection (f)(4). Not later than the fifth day after the date of
35-15 a withdrawal, the comptroller [treasurer] shall notify each
35-16 distributor of the withdrawal from its account and the amount
35-17 withdrawn. If as a result of a withdrawal made under this
35-18 subsection a distributor's balance in its account is reduced to an
35-19 amount less than the minimum required under this section, the
35-20 distributor's interest in the fund is no longer vested, and the
35-21 comptroller [treasurer] may discontinue refunds to the distributor
35-22 under Subsection (d) until the distributor again acquires a vested
35-23 interest in the fund. The comptroller [treasurer] may require a
35-24 distributor whose interest in the fund is no longer vested to post
35-25 an irrevocable letter of credit with the comptroller [treasurer] to
36-1 secure the payment of cigarette taxes by the distributor. To
36-2 protect the fund, each distributor having an account in the fund
36-3 must indemnify the fund against any amount withdrawn from the fund
36-4 under this subsection because of the failure of the distributor to
36-5 pay in full a tax imposed by this chapter by the due date.
36-6 (h) If distributor accounts, other than a defaulting
36-7 distributor account, are drawn pursuant to Subsection (g) [of this
36-8 section], each affected, nondefaulting distributor shall have a
36-9 claim against the defaulting distributor for the amount so drawn.
36-10 The comptroller [treasurer] is hereby appointed trustee, agent, and
36-11 assignee of each affected, nondefaulting distributor for purposes
36-12 of seeking recovery of the amount so drawn. The comptroller
36-13 [treasurer] shall have the sole judgment and discretion in deciding
36-14 whether or not to pursue such a claim and shall have discretion to
36-15 handle any such claim on any basis that in the opinion of the
36-16 comptroller [treasurer] is in the best interest of the fund. The
36-17 comptroller [treasurer] is released from any liability related to
36-18 the handling of the claims described in this section except for
36-19 intentional or wilful misconduct.
36-20 (i) A distributor or person authorized to act on behalf of a
36-21 distributor may notify the comptroller [treasurer] in writing that
36-22 the distributor no longer desires to have stamps shipped [or a
36-23 meter set] without advance payment, and may request that the money
36-24 in the distributor's account in the fund be paid to the distributor
36-25 or the distributor's heirs or assigns. The comptroller [treasurer]
37-1 shall pay the money in the distributor's account as requested at
37-2 the end of the next quarter after all outstanding taxes owed to the
37-3 state by the distributor have been paid.
37-4 (j) Under no circumstances shall the comptroller [treasurer]
37-5 return to any distributor an amount greater than the balance in the
37-6 distributor's account within the cigarette tax recovery trust fund
37-7 less any sums drawn pursuant to Subsection (g) [of this section].
37-8 The State of Texas' liability to any distributor pursuant to this
37-9 section is expressly limited to the sums on deposit in the
37-10 distributor's account at the time the request for return of funds
37-11 is made.
37-12 (k) The comptroller [treasurer] may adopt and enforce rules
37-13 necessary to carry out this section.
37-14 (n) The comptroller [treasurer] shall regularly distribute
37-15 financial information regarding the performance of the fund to
37-16 participating distributors on a regular basis. On the written
37-17 request of a participating distributor, the comptroller [treasurer]
37-18 shall provide the distributor with the name and address of each
37-19 distributor participating in the fund, the percentage of the total
37-20 fund represented by each distributor's account, and the total
37-21 amount of money in the fund.
37-22 (o) In lieu of participation in the cigarette tax recovery
37-23 trust fund to secure payment for stamps [or meter settings] and in
37-24 lieu of advance payment for stamps [or meter settings], a
37-25 distributor may pledge to the comptroller [treasurer] sufficient
38-1 collateral to secure payment for stamps [or meter settings]. Such
38-2 pledge shall be evidenced by a pledge agreement in a form
38-3 promulgated by the comptroller [treasurer], and such collateral
38-4 shall consist of certificates of deposit, treasury notes, treasury
38-5 bills, or other similar types of collateral acceptable to the
38-6 comptroller [treasurer] and held in a separate trust fund
38-7 established in the Texas Treasury Safekeeping Trust Company. All
38-8 interest earned on such collateral shall belong to the distributor.
38-9 The comptroller [treasurer] may require the pledge of additional
38-10 collateral in the event the comptroller [treasurer] determines that
38-11 the fair market value of the pledged collateral is less than the
38-12 amount due the comptroller [treasurer] for stamps [or meter
38-13 settings]. On the written request of the distributor, the
38-14 comptroller [treasurer] shall release collateral from the pledge
38-15 agreement or allow the substitution of collateral subject to the
38-16 pledge agreement if after such release or substitution the fair
38-17 market value of the collateral subject to the pledge will be equal
38-18 to or greater than the amount due the comptroller [treasurer] for
38-19 stamps [or meter settings]. If a distributor fails to pay tax in
38-20 full when due, the comptroller [treasurer] may, if the distributor
38-21 does not pay such past due tax and any penalty related thereto
38-22 within three days after receipt of written notice of such failure
38-23 from the comptroller [treasurer], sell or dispose of the collateral
38-24 and apply the proceeds to the payment of taxes, interest,
38-25 penalties, and costs due to the comptroller [treasurer] by the
39-1 distributor, with any remaining proceeds being refunded to the
39-2 distributor.
39-3 SECTION 44. Subsections (b), (c), and (d), Section 154.405,
39-4 Tax Code, are amended to read as follows:
39-5 (b) The comptroller [treasurer] shall give the notice by
39-6 certified mail, return receipt requested, not later than the 15th
39-7 day after the date of seizure and include with the notice an
39-8 inventory of the property seized and a statement that the owner of
39-9 property seized is entitled to [of the date, time, and place of] a
39-10 hearing on the seizure. Service by mail is complete when the
39-11 notice is received, as evidenced by return receipt from the U.S.
39-12 Postal Service.
39-13 (c) After providing the notice and a hearing, if a hearing
39-14 is requested under Subsection (b), the comptroller [treasurer] may
39-15 order the forfeiture to the state of any property seized under this
39-16 chapter or the proceeds of the sale of any cigarettes seized under
39-17 this chapter if the property was used, controlled, possessed, or
39-18 concealed for the purpose of violating any provision of this
39-19 chapter.
39-20 (d) The comptroller [treasurer] shall hold property or
39-21 proceeds forfeited under this section in escrow until the
39-22 comptroller's [treasurer's] determination is final and the period
39-23 for filing a petition for judicial review has expired.
39-24 SECTION 45. Section 154.415, Tax Code, is amended to read as
39-25 follows:
40-1 Sec. 154.415. DONATIONS [ADDITIONAL ENFORCEMENT POWERS].
40-2 [(a) The treasurer has all of the rights and powers granted the
40-3 comptroller in Chapters 111 and 113 of this code with respect to
40-4 the tax imposed by this chapter. Those rights and powers are in
40-5 addition to those granted the treasurer in this chapter.]
40-6 [(b)] The comptroller [treasurer] may accept gifts, grants,
40-7 and donations for the administration and enforcement of this
40-8 chapter.
40-9 SECTION 46. Section 155.001, Tax Code, is amended to read as
40-10 follows:
40-11 Sec. 155.001. DEFINITIONS. In this chapter:
40-12 (1) "Bonded agent" means a person in this state who is
40-13 an agent of a person outside this state and receives cigars and
40-14 tobacco products in interstate commerce and stores the cigars and
40-15 tobacco products for distribution or delivery to distributors under
40-16 orders from the person outside this state.
40-17 (2) "Cigar" means a roll of fermented tobacco that is
40-18 wrapped in tobacco and the main stream of smoke from which produces
40-19 an alkaline reaction to litmus paper.
40-20 (3) "Common carrier" means a motor carrier registered
40-21 under Chapter 643, Transportation Code [Article 6675c, Revised
40-22 Statutes], or a motor carrier operating under a certificate issued
40-23 by the Interstate Commerce Commission or a successor agency to the
40-24 Interstate Commerce Commission.
40-25 (4) "Consumer" means a person who possesses tobacco
41-1 products for personal consumption.
41-2 (5) "Distributor" means a person who:
41-3 (A) receives tobacco products for the purpose of
41-4 making a first sale in this state from a manufacturer outside the
41-5 state or within the state or otherwise brings or causes to be
41-6 brought into this state tobacco products for sale, use, or
41-7 consumption; [or]
41-8 (B) manufactures or produces tobacco products;
41-9 or
41-10 (C) is an importer or import broker.
41-11 (6) "Export warehouse" means a person in this state
41-12 who receives tobacco products from manufacturers and stores the
41-13 tobacco products for the purpose of making sales to authorized
41-14 persons for resale, use, or consumption outside the United States.
41-15 (7) "First sale" means, except as otherwise provided
41-16 by this chapter:
41-17 (A) the first transfer of possession in
41-18 connection with a purchase, sale, or any exchange for value of
41-19 tobacco products in intrastate commerce;
41-20 (B) the first use or consumption of tobacco
41-21 products in this state; or
41-22 (C) the loss of tobacco products in this state
41-23 whether through negligence, theft, or other unaccountable loss.
41-24 (8) "Importer" or "import broker" means a person who
41-25 ships, transports, or imports into this state tobacco products
42-1 manufactured or produced outside the United States for the purpose
42-2 of making a first sale in this state.
42-3 (9) [(7)] "Manufacturer" means a person who
42-4 manufactures or produces tobacco products and sells tobacco
42-5 products to a distributor.
42-6 (10) [(8)] "Manufacturer's representative" means a
42-7 person employed by a manufacturer to sell or distribute the
42-8 manufacturer's tobacco products.
42-9 (11) [(9)] "Permit holder" means a bonded agent,
42-10 distributor, wholesaler, or retailer required to obtain a permit
42-11 under Section 155.041.
42-12 (12) [(10)] "Place of business" means:
42-13 (A) a commercial business location [place] where
42-14 tobacco products are sold;
42-15 (B) a commercial business location [place] where
42-16 tobacco products are kept for sale or consumption or otherwise
42-17 stored; or
42-18 (C) a vehicle from which tobacco products are
42-19 sold.
42-20 (13) [(11)] "Retailer" means a person who engages in
42-21 the practice of selling tobacco products to consumers and includes
42-22 the owner of a coin-operated vending machine.
42-23 (14) [(12)] "Tobacco product" means:
42-24 (A) a cigar;
42-25 (B) smoking tobacco, including granulated,
43-1 plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable
43-2 for smoking in a pipe or as a cigarette;
43-3 (C) chewing tobacco, including Cavendish, Twist,
43-4 plug, scrap, and any kind of tobacco suitable for chewing;
43-5 (D) snuff or other preparations of pulverized
43-6 tobacco; or
43-7 (E) an article or product that is made of
43-8 tobacco or a tobacco substitute and that is not a cigarette.
43-9 (15) [(13)] "Wholesaler" means a person, including a
43-10 manufacturer's representative, who sells or distributes tobacco
43-11 products in this state for resale but who is not a distributor.
43-12 SECTION 47. Section 155.101, Tax Code, is amended to read as
43-13 follows:
43-14 Sec. 155.101. RECORD OF PURCHASE OR RECEIPT. Each
43-15 distributor, wholesaler, bonded agent, and export warehouse shall
43-16 keep records at each place of business of all tobacco products
43-17 purchased or received. Each retailer shall keep records at a
43-18 single location, which the retailer shall designate as its
43-19 principal place of business in the state, of all tobacco products
43-20 purchased and received. These records must include the following,
43-21 except that Subdivision (7) applies to distributors only:
43-22 (1) the name and address of the shipper or carrier and
43-23 the mode of transportation;
43-24 (2) all shipping records or copies of records,
43-25 including invoices, bills of lading, waybills, freight bills, and
44-1 express receipts;
44-2 (3) the date and the name of the place of origin of
44-3 the tobacco product shipment;
44-4 (4) the date and the name of the place of arrival of
44-5 the tobacco product shipment;
44-6 (5) a statement of the number, kind, and price paid
44-7 for the tobacco products;
44-8 (6) the name, address, permit number, and tax
44-9 identification number of the seller; [and]
44-10 (7) the manufacturer's list price for the tobacco
44-11 products; and
44-12 (8) any other information required by rules of the
44-13 comptroller [treasurer].
44-14 SECTION 48. Subsection (b), Section 155.102, Tax Code, is
44-15 amended to read as follows:
44-16 (b) The records for each sale, distribution, exchange, or
44-17 use of tobacco products must show:
44-18 (1) the purchaser's name and address, permit number,
44-19 or tax identification number;
44-20 (2) the method of delivery and the name of the common
44-21 carrier or other person delivering the tobacco products;
44-22 (3) the date, amount, and type of tobacco products
44-23 sold, distributed, exchanged, or used;
44-24 (4) the price received for the tobacco products; [and]
44-25 (5) the number and kind of tobacco products on which
45-1 the tax has been paid; and
45-2 (6) for sales from a manufacturer to a distributor,
45-3 the manufacturer's list price for the tobacco products.
45-4 SECTION 49. Section 155.111, Tax Code, is amended to read as
45-5 follows:
45-6 Sec. 155.111. DISTRIBUTOR'S REPORT. (a) A distributor
45-7 shall file with the comptroller [treasurer] on or before the 30th
45-8 day of each month, a report for the preceding month.
45-9 (b) The report must show:
45-10 (1) the date the report was made;
45-11 (2) the distributor's name and address;
45-12 (3) the month the report covers;
45-13 (4) the amount of tobacco products purchased,
45-14 received, and acquired;
45-15 (5) the manufacturer's list price of tobacco products
45-16 purchased, received, and acquired;
45-17 (6) the amount of tobacco products sold, distributed,
45-18 used, lost, or otherwise disposed of;
45-19 (7) [(6)] the amount of tobacco products on hand at
45-20 the beginning and the end of the month; and
45-21 (8) [(7)] any other information the comptroller
45-22 [treasurer] requires relating to tobacco products and to the
45-23 payment of taxes due on them.
45-24 (c) The comptroller [treasurer] shall prescribe the form and
45-25 content of the report.
46-1 SECTION 50. Section 155.141, Tax Code, is amended to read as
46-2 follows:
46-3 Sec. 155.141. DONATIONS [ENFORCEMENT POWERS]. [(a) The
46-4 treasurer has all of the rights and powers granted the comptroller
46-5 in Chapters 111 and 113 of this code with respect to the tax
46-6 imposed by this chapter. Those rights and powers are in addition
46-7 to those granted the treasurer in this chapter.]
46-8 [(b)] The comptroller [treasurer] may accept gifts, grants,
46-9 and donations for the administration and enforcement of this
46-10 chapter.
46-11 SECTION 51. Subsections (b), (c), and (d), Section 155.145,
46-12 Tax Code, are amended to read as follows:
46-13 (b) The comptroller [treasurer] shall give the notice by
46-14 certified mail, return receipt requested, not later than the 15th
46-15 day after the date of seizure and shall include with the notice an
46-16 inventory of the property seized and a statement that the owner of
46-17 property seized is entitled to [of the date, time, and place of] a
46-18 hearing on the seizure. Service by mail is complete when the
46-19 notice is received, as evidenced by return receipt from the U.S.
46-20 Postal Service.
46-21 (c) After providing the notice and a hearing, if a hearing
46-22 is requested under Subsection (b), the comptroller [treasurer] may
46-23 order the forfeiture to the state of any property seized under this
46-24 chapter or the proceeds of the sale of any tobacco products seized
46-25 under this chapter if the comptroller [treasurer] finds that the
47-1 property was used, controlled, possessed, or concealed for the
47-2 purpose of violating any provision of this chapter.
47-3 (d) The comptroller [treasurer] shall hold property or
47-4 proceeds forfeited under this section in escrow until the
47-5 comptroller's [treasurer's] determination is final and the period
47-6 for filing a petition for judicial review has expired.
47-7 SECTION 52. Subsection (e), Section 201.057, Tax Code, is
47-8 amended to read as follows:
47-9 (e) The operator of a proposed or existing gas well,
47-10 including a gas well that has not been completed, or the operator
47-11 of any proposed or existing oil or gas well within a commission
47-12 approved co-production project, may apply to the commission for
47-13 certification that the well produces or will produce high-cost gas.
47-14 Such application, if seeking certification as high-cost gas
47-15 according to Subsection (a)(2)(A), may be made at any time [must be
47-16 made in writing no later than the 180th day] after the first day of
47-17 production. The application may be made but is not required to be
47-18 made concurrently with a request for a determination that gas
47-19 produced from the well is high-cost natural gas for purposes of the
47-20 Natural Gas Policy Act of 1978 (15 U.S.C. Section 3301 et seq.) or
47-21 with a request for commission approval of a co-production project.
47-22 The commission may require an applicant to provide the commission
47-23 with any relevant information required to administer this section.
47-24 For purposes of this section, a determination that gas is high-cost
47-25 natural gas according to Subsection (a)(2)(A) or a determination
48-1 that gas is produced from within a commission approved
48-2 co-production project is a certification that the gas is high-cost
48-3 gas for purposes of this section, and in that event additional
48-4 certification is not required to qualify for the exemption or tax
48-5 reduction provided by this section.
48-6 SECTION 53. Subsection (f), Section 201.057, Tax Code, is
48-7 amended to read as follows:
48-8 (f) To qualify for the exemption or tax reduction provided
48-9 by this section, the person responsible for paying the tax must
48-10 apply to the comptroller. The application must contain the
48-11 certification of the commission that the well produces high-cost
48-12 gas and, if the application is for a well spudded or completed
48-13 after September 1, 1995, must contain a report of drilling and
48-14 completion costs incurred for each well on a form and in the detail
48-15 as determined by the comptroller. Drilling and completion costs
48-16 for a recompletion shall only include current and contemporaneous
48-17 costs associated with the recompletion. Notwithstanding any other
48-18 provision of this section, to obtain the maximum tax exemption or
48-19 tax deduction, an [An] application to the comptroller for
48-20 certification according to Subsection (a)(2)(A) must [may not] be
48-21 filed with the comptroller at the later of [after] the 180th day
48-22 after the date of first [day of] production or the 45th day after
48-23 the date of approval by the commission. If the application is not
48-24 filed by the applicable deadline, the tax exemption or tax
48-25 deduction is reduced by 10 percent for the period beginning on the
49-1 180th day after the first day of production and ending on the date
49-2 on which the application is filed with the comptroller. An
49-3 application to the comptroller for certification according to
49-4 Subsection (a)(2)(B) may not be filed before January 1, 1990, or
49-5 after December 31, 1998. The comptroller shall approve the
49-6 application of a person who demonstrates that the gas is eligible
49-7 for the exemption or tax reduction. The comptroller may require a
49-8 person applying for the exemption or tax reduction to provide any
49-9 relevant information in the person's monthly report that the
49-10 comptroller considers necessary to administer this section. The
49-11 commission shall notify the comptroller in writing immediately if
49-12 it determines that an oil or gas well previously certified as
49-13 producing high-cost gas does not produce high-cost gas or if it
49-14 takes any action or discovers any information that affects the
49-15 eligibility of gas for an exemption or tax reduction under this
49-16 section.
49-17 SECTION 54. Subchapter E, Chapter 201, Tax Code, is amended
49-18 by adding Section 201.2037 to read as follows:
49-19 Sec. 201.2037. DISCLOSURE OF CERTAIN INFORMATION.
49-20 Notwithstanding any provision of this chapter or Chapter 202,
49-21 neither the comptroller nor the Railroad Commission of Texas may
49-22 require disclosure of information relating to receipt points,
49-23 delivery points, volumes, rates, or other natural gas
49-24 transportation contractual information under this chapter or
49-25 Chapter 202 unless the disclosure is reasonably necessary for the
50-1 comptroller or commission to implement or administer this chapter
50-2 or Chapter 202. This section expires September 1, 1999.
50-3 SECTION 55. Subsection (a), Section 202.201, Tax Code, is
50-4 amended to read as follows:
50-5 (a) A producer authorized by the comptroller to remit the
50-6 tax due shall file with the comptroller, on or before the 25th day
50-7 of each calendar month, the report under this subsection and, as
50-8 applicable, the report under Subsection (d) showing the total oil
50-9 produced, used, lost or stolen, or possessed and otherwise
50-10 unaccounted for by the producer during the preceding calendar
50-11 month. The report under this subsection must show:
50-12 (1) the number of barrels of oil produced from each
50-13 lease;
50-14 (2) each county [the counties] in which each lease
50-15 from which oil was produced is located;
50-16 (3) the name, address, and taxpayer identification
50-17 number assigned by the comptroller of each first purchaser of oil
50-18 and for each the amount of oil purchased from each lease;
50-19 (4) the payment [price, by amounts,] received for the
50-20 oil from [for] each first purchaser from each lease from which oil
50-21 was produced;
50-22 (5) the name and lease identification number of each
50-23 [the] lease from which the oil was produced; and
50-24 (6) other information the comptroller may reasonably
50-25 require.
51-1 SECTION 56. Subsection (a), Section 202.202, Tax Code, is
51-2 amended to read as follows:
51-3 (a) On or before the 25th day of each calendar month, each
51-4 first purchaser or his authorized agent shall file a report with
51-5 the comptroller. The report must contain the following information
51-6 concerning oil purchased from a producer during the preceding
51-7 calendar month:
51-8 (1) the number of barrels of oil purchased from each
51-9 lease for each producer;
51-10 (2) the amount [price] paid to each producer for each
51-11 lease from which [the] oil was purchased;
51-12 (3) the name and address of each producer;
51-13 (4) each county [the counties] in which each lease
51-14 from which the purchased oil was produced is located;
51-15 (5) the name and lease identification number of each
51-16 lease [names of the leases] from which the purchased oil was
51-17 produced; and
51-18 (6) other information the comptroller may reasonably
51-19 require.
51-20 SECTION 57. Section 211.102, Tax Code, is amended to read as
51-21 follows:
51-22 Sec. 211.102. DAY ON WHICH PAYMENT IS DUE. Except as
51-23 provided by Sections 211.103 and 211.104(b), payment [Payment] of a
51-24 tax imposed by Section 211.051, 211.052, or 211.053 of this code on
51-25 a decedent's estate is due nine months after the day of the
52-1 decedent's death.
52-2 SECTION 58. Section 211.104, Tax Code, is amended to read as
52-3 follows:
52-4 Sec. 211.104. REPORT OF DETERMINATION OF FEDERAL TAX.
52-5 (a) Within 30 days after receiving notice or information of the
52-6 final assessment and determination of the value of the taxable
52-7 estate assessed and determined by the federal government for the
52-8 purpose of fixing federal estate taxes on that estate, the personal
52-9 representative shall make to the comptroller a report of the value
52-10 of the estate as so fixed and determined. The report shall be made
52-11 in a form and contain information as the comptroller directs.
52-12 (b) Any additional tax due by a decedent's estate as a
52-13 result of an Internal Revenue Service audit or federal tax court
52-14 decision shall be paid to the comptroller not later than the 30th
52-15 day after the date the personal representative receives the notice
52-16 or information of the final assessment and determination of value
52-17 of the taxable estate by the federal government for the purpose of
52-18 fixing federal estate taxes on that estate. The comptroller shall
52-19 issue a determination if any additional amounts owed to the
52-20 comptroller are not remitted with a copy of the audit or tax court
52-21 changes.
52-22 SECTION 59. Subchapter C, Chapter 211, Tax Code, is amended
52-23 by adding Section 211.111 to read as follows:
52-24 Sec. 211.111. LIMITATIONS. (a) The period of limitation
52-25 provided under Section 111.201 does not begin to run in favor of a
53-1 decedent's estate, the estate's personal representative, a
53-2 transferee, a distributee, or any other person liable under Section
53-3 211.108 or 211.201 until the tax liability of the decedent's estate
53-4 becomes final. If an extension of time for filing the return or
53-5 paying the tax is granted to the decedent's estate by the
53-6 comptroller under Section 211.103, the extension tolls the
53-7 beginning of the limitation period for the estate's personal
53-8 representative, transferees, distributees, and other persons.
53-9 (b) A limitation period does not begin to run in favor of a
53-10 decedent's estate, any personal representative, transferee,
53-11 distributee, or other person until the comptroller receives the
53-12 notice or information of the final assessment and determination of
53-13 the value of the decedent's estate for purpose of fixing federal
53-14 estate taxes on that estate, as required under Section 211.104.
53-15 (c) If property is transferred from a decedent's estate
53-16 after the comptroller receives notice or information as required
53-17 under Section 211.104 of the final assessment and determination of
53-18 the value of the estate by the federal government and the tax
53-19 remains unpaid, the limitation period does not begin to run in
53-20 favor of a person liable under Section 211.108 or 211.201 until the
53-21 comptroller learns of the transfer.
53-22 SECTION 60. Section 211.251, Tax Code, is amended to read as
53-23 follows:
53-24 Sec. 211.251. COMPTROLLER'S AUTHORITY TO EXAMINE BOOKS AND
53-25 OTHER PROPERTY. The comptroller may examine books, records,
54-1 documents, or other property of a decedent's estate or of a
54-2 personal representative, transferee, or distributee of a decedent's
54-3 estate at any time [if] the examination is necessary for the
54-4 comptroller to enforce this chapter without regard to the period
54-5 provided by Section 111.0041.
54-6 SECTION 61. Subchapter B, Chapter 403, Government Code, is
54-7 amended by adding Section 403.026 to read as follows:
54-8 Sec. 403.026. ELECTRONIC STORAGE AND MAINTENANCE OF RECORDS.
54-9 (a) The comptroller may store and maintain electronically a state
54-10 record or an essential record if:
54-11 (1) the method used to store and maintain the record
54-12 allows accurate reproduction of the record;
54-13 (2) the method used to store and maintain the record
54-14 conforms with any standards prescribed by the records preservation
54-15 officer in conformity with any applicable rules of the National
54-16 Institute of Standards and Technology, except that those standards
54-17 do not apply to the extent they conflict with this section; and
54-18 (3) the place and manner of safekeeping the medium or
54-19 equipment on which the record is stored and maintained conforms
54-20 with the records preservation officer's requirements under Section
54-21 441.059(a), except that the officer may not prohibit the
54-22 comptroller from retaining possession of that medium or equipment.
54-23 (b) An accurate reproduction of a state record that is
54-24 stored and maintained according to this section is a preservation
54-25 duplicate of the record for purposes of Sections 441.058 and
55-1 441.059, without regard to whether the records preservation
55-2 officer:
55-3 (1) made the reproduction; or
55-4 (2) designated the reproduction as a preservation
55-5 duplicate.
55-6 (c) An accurate reproduction of an essential record that is
55-7 stored and maintained according to this section is a photographic
55-8 reproduction of the record for purposes of Section 441.038(f).
55-9 (d) An accurate reproduction of a state record or an
55-10 essential record may be in tangible or intangible form, including
55-11 an electronic or optical image of the record.
55-12 (e) In this section:
55-13 (1) "Essential record" means written or graphical
55-14 material that is made or received by the comptroller in the conduct
55-15 of official state business and that is filed or intended to be
55-16 preserved permanently or for a definite period as a record of that
55-17 business.
55-18 (2) "Records preservation officer" means the director
55-19 of the records management division of the Texas State Library.
55-20 (3) "State record" means a document, book, paper,
55-21 photograph, sound recording, or other material, without regard to
55-22 physical form or characteristic, that is made or received by the
55-23 comptroller according to law or in connection with the transaction
55-24 of official state business.
55-25 SECTION 62. Section 2155.004, Government Code, is amended to
56-1 read as follows:
56-2 Sec. 2155.004. CERTAIN BIDS AND CONTRACTS PROHIBITED.
56-3 (a) A state agency may not accept a bid or award a contract that
56-4 includes proposed financial participation by a person who received
56-5 compensation from the agency to participate in preparing the
56-6 specifications or request for proposals on which the bid or
56-7 contract is based.
56-8 (b) A state agency may not accept a bid or award a contract
56-9 to any individual not residing in this state or business entity not
56-10 incorporated in or whose principal domicile is not in this state
56-11 unless the individual or business entity:
56-12 (1) holds a permit issued by the comptroller to
56-13 collect or remit all state and local sales and use taxes that
56-14 become due and owing as a result of the individual's or entity's
56-15 business in this state; or
56-16 (2) certifies that it does not sell tangible personal
56-17 property or services that are subject to the state and local sales
56-18 and use tax.
56-19 (c) A bid or award subject to the requirements of this
56-20 section must include the following statement:
56-21 "Under Section 2155.004, Government Code, the vendor
56-22 certifies that the individual or business entity named in this bid
56-23 or contract is not ineligible to receive the specified contract and
56-24 acknowledges that this contract may be terminated and payment
56-25 withheld if this certification is inaccurate."
57-1 (d) If a state agency determines that an individual or
57-2 business entity holding a state contract was ineligible to have the
57-3 contract accepted or awarded under Subsection (a) or (b), the state
57-4 agency may immediately terminate the contract without further
57-5 obligation to the vendor.
57-6 (e) If the certification required under Subsection (b)(2) is
57-7 shown to be false, the vendor is liable to the state for attorney's
57-8 fees, the costs necessary to complete the contract, including the
57-9 cost of advertising and awarding a second contract, and any other
57-10 damages provided by law or contract.
57-11 (f) This section does not create a cause of action to
57-12 contest a bid or award of a state contract.
57-13 (g) In the absence of a certification by the vendor under
57-14 Subsection (b)(2), the purchasing state agency shall determine if a
57-15 prospective vendor holds a permit for the collection and remission
57-16 of state and local sales and use taxes.
57-17 (h) This section does not prohibit a bidder or contract
57-18 participant from providing free technical assistance to a state
57-19 agency.
57-20 SECTION 63. Subsections (a), (b), (c), and (d), Section
57-21 403.302, Government Code, are amended to read as follows:
57-22 (a) The comptroller shall conduct an annual study using
57-23 comparable sales and generally accepted auditing and sampling
57-24 techniques to determine the total taxable value of all [taxable]
57-25 property in each school district. The study shall determine the
58-1 taxable value of all property and of each category of property in
58-2 the district and the productivity value of all land that qualifies
58-3 for appraisal on the basis of its productive capacity and for which
58-4 the owner has applied for and received a productivity appraisal.
58-5 The comptroller shall make appropriate adjustments in the study to
58-6 account for actions taken under Chapter 41, Education Code.
58-7 (b) In conducting the study, the comptroller shall [review
58-8 the appraisal standards, procedures, and methodology used by each
58-9 appraisal district to] determine the taxable value of property in
58-10 each school district[. The review must test the validity of the
58-11 taxable values assigned to each category of property by the
58-12 appraisal district]:
58-13 (1) using, if appropriate, samples selected through
58-14 generally accepted sampling techniques; and
58-15 (2) according to generally accepted standard
58-16 valuation, statistical compilation, and analysis techniques.
58-17 (c) If the comptroller determines [finds] in the annual
58-18 study that the market value of property in a school district as
58-19 determined by the appraisal district that appraises property for
58-20 the school district, less the total of the amounts and values
58-21 listed in Subsection (d) as determined by that appraisal district,
58-22 is [generally accepted appraisal standards and practices were used
58-23 by the appraisal district in valuing a particular category of
58-24 property, and that the taxable values assigned to each category of
58-25 property by the appraisal district are] valid, the market
59-1 [appraisal roll] value of [that category of] property in the school
59-2 district as determined by the appraisal district that appraises
59-3 property for the school district, less the total of the amounts and
59-4 values listed in Subsection (d) as determined by that appraisal
59-5 district, is presumed to represent taxable value. In the absence
59-6 of such a presumption, [the comptroller shall estimate the] taxable
59-7 value is the value determined by the comptroller under Subsection
59-8 (a) [of that category of property using generally accepted standard
59-9 valuation, statistical compilation, and analysis techniques].
59-10 (d) For the purposes of this section, "taxable value" means
59-11 the market value of all taxable property less:
59-12 (1) the total dollar amount of any residence homestead
59-13 exemptions [of part but not all of the value of taxable property
59-14 required by the constitution or a statute that a district] lawfully
59-15 granted under Section 11.13(b) or (c), Tax Code, in the year that
59-16 is the subject of the study for each school district;
59-17 (2) the total dollar amount of any exemptions granted
59-18 before May 31, 1993, within a reinvestment zone under agreements
59-19 authorized by Chapter 312, Tax Code;
59-20 (3) the total dollar amount of any captured appraised
59-21 value of property that is located in a reinvestment zone, generates
59-22 a tax increment paid into a tax increment fund, and [that] is
59-23 eligible for tax increment financing under Chapter 311, Tax Code;
59-24 (4) the total dollar amount of any exemptions granted
59-25 under Section 11.251, Tax Code;
60-1 (5) the difference between the comptroller's estimate
60-2 of the market value and the productivity value of land that
60-3 qualifies for appraisal on the basis of its productive capacity,
60-4 except that the productivity value estimated by the comptroller may
60-5 not exceed the fair market value of the land;
60-6 (6) the portion of the appraised value of residence
60-7 homesteads of the elderly on which school district taxes are not
60-8 imposed in the year that is the subject of the study, calculated as
60-9 if the residence homesteads were appraised at the full value
60-10 required by law;
60-11 (7) a portion of the market value of property not
60-12 otherwise fully taxable by the district at market value because of
60-13 action required by statute or the constitution of this state that,
60-14 if the tax rate adopted by the district is applied to it, produces
60-15 an amount equal to the difference between the tax that the district
60-16 would have imposed on the property if the property were fully
60-17 taxable at market value and the tax that the district is actually
60-18 authorized to impose on the property, if this subsection does not
60-19 otherwise require that portion to be deducted; and
60-20 (8) the market value of all tangible personal
60-21 property, other than manufactured homes, owned by a family or
60-22 individual and not held or used for the production of income.
60-23 SECTION 64. Subsection (a), Section 403.303, Government
60-24 Code, is amended to read as follows:
60-25 (a) A school district or a property owner whose property is
61-1 included in the study under Section 403.302 and whose tax liability
61-2 on the property is $100,000 or more may protest the comptroller's
61-3 findings under Section 403.302(f) or (g) by filing a petition with
61-4 the comptroller. The petition must be filed not later than the
61-5 40th [30th] day after the date on which the comptroller's findings
61-6 are certified to the commissioner of education and must specify the
61-7 grounds for objection and the value claimed to be correct by the
61-8 school district or property owner.
61-9 SECTION 65. Section 5.102, Tax Code, is amended to read as
61-10 follows:
61-11 Sec. 5.102. REVIEW OF APPRAISAL STANDARDS [NON COMPLIANCE BY
61-12 APPRAISAL DISTRICT]. (a) The comptroller shall review the
61-13 appraisal standards, procedures, and methodology used by each
61-14 appraisal district to determine compliance with generally accepted
61-15 appraisal standards and practices.
61-16 (b) If the review [study required by Section 403.302,
61-17 Government Code,] results in a finding that an appraisal district
61-18 is not in compliance with generally accepted appraisal standards
61-19 and practices, the comptroller shall deliver a report that details
61-20 the comptroller's findings and recommendations for improvement to
61-21 the appraisal district's chief appraiser and board of directors.
61-22 (c) [(b)] If noncompliance with generally accepted appraisal
61-23 standards and practices is found in two consecutive reviews [annual
61-24 studies] and if an affected appraisal district's chief appraiser
61-25 and board of directors fail to take effective remedial action as
62-1 determined by the comptroller, the comptroller may appoint a
62-2 special master who may exercise supervision and control over the
62-3 operations of the district until full compliance with generally
62-4 accepted appraisal standards and practices is achieved. The
62-5 appraisal district shall bear the costs related to the master's
62-6 supervision and control.
62-7 SECTION 66. Section 5.16, Tax Code, is amended to read as
62-8 follows:
62-9 Sec. 5.16. Administrative Provisions. (a) The comptroller
62-10 may inspect the records or other materials of an appraisal office
62-11 or taxing unit, including the relevant records and materials in the
62-12 possession or control of a consultant, advisor, or expert hired by
62-13 the appraisal office or taxing unit, for the purpose of:
62-14 (1) establishing, reviewing, or evaluating the value
62-15 of or an appraisal of any property; or
62-16 (2) conducting a study, review, or audit required by
62-17 Section 5.10 or 5.102 or by Section 403.302, Government Code.
62-18 (b) On request of the comptroller, the chief appraiser or
62-19 administrative head of the taxing unit shall produce the materials
62-20 in the form and manner prescribed by the comptroller [as soon as
62-21 practicable].
62-22 SECTION 67. Subsection (b), Section 26.01, Tax Code, is
62-23 amended to read as follows:
62-24 (b) When a chief appraiser submits an appraisal roll for
62-25 county taxes to a county assessor-collector, the chief appraiser
63-1 [he] also shall certify the appraisal district appraisal roll to
63-2 the comptroller. However, the comptroller by rule may provide for
63-3 submission of only a summary of the appraisal roll. The [In that
63-4 event, the] chief appraiser shall certify the district appraisal
63-5 roll or the summary of that roll in the form and manner prescribed
63-6 by the comptroller's rule.
63-7 SECTION 68. Subsection (a), Section 361.472, Health and
63-8 Safety Code, is amended to read as follows:
63-9 (a) A person in the business of selling new or good used
63-10 tires for use on a vehicle, or a person in the business of selling
63-11 used vehicles or used vehicle parts who sells or offers to sell new
63-12 or good used tires not for resale shall collect at the time and
63-13 place of sale a waste tire recycling fee for each tire sold as
63-14 follows:
63-15 (1) $2 for each new tire that has a rim diameter of 12
63-16 inches or more but less than 17.5 inches and $1 for each good used
63-17 tire that has a rim diameter of 12 inches or more but less than
63-18 17.5 inches;
63-19 (2) $3.50 for each new tire that has a rim diameter of
63-20 17.5 inches or greater, other than an off-the-road tire intended
63-21 for use on heavy machinery, including an earthmover, a
63-22 loader/dozer, a grader, or mining equipment; and
63-23 (3) $2 for a new motorcycle tire, regardless of the
63-24 rim diameter.
63-25 SECTION 69. Subsection (2), Section 16A, Article 8817,
64-1 Revised Statutes, is amended to read as follows:
64-2 (2) Machines which are exhibited by a nonlicensed owner
64-3 exempt under this section must be registered with the Comptroller.
64-4 The owner shall obtain a registration certificate each year. The
64-5 registration certificate shall show the name and address of the
64-6 location of each machine and shall certify that the machine has a
64-7 valid tax stamp affixed to it. The owner shall obtain his
64-8 registration certificate by filing an [sworn] application in the
64-9 form prescribed by the Comptroller.
64-10 SECTION 70. Section 2, Article 1.28, Insurance Code, is
64-11 amended to read as follows:
64-12 Sec. 2. (a) A [The amount of the examination expenses
64-13 incurred by representatives of the State Board of Insurance that is
64-14 directly attributable to an examination of the books, records,
64-15 accounts, and principal offices of a domestic insurance company
64-16 located outside this state as provided by this article is not
64-17 allowed as a] credit on or offset to the amount of premium taxes to
64-18 be paid by the domestic insurance company to the state in a taxable
64-19 year may not be allowed on:
64-20 (1) examination expenses incurred by representatives
64-21 of the department that are directly attributable to an examination
64-22 of the books, records, accounts, or principal offices of a domestic
64-23 insurance company located outside this state;
64-24 (2) examination expenses or fees paid to a state other
64-25 than this state; or
65-1 (3) examination expenses paid in a different taxable
65-2 year.
65-3 (b) This[, and this] article prevails over any conflicting
65-4 provisions in Articles 1.16, 4.10, 9.59, and 4.11 of this code or
65-5 any other law of this state.
65-6 SECTION 71. Subsection (a), Article 4.17, Insurance Code, is
65-7 amended to read as follows:
65-8 (a) The commissioner shall annually determine the rate of
65-9 assessment of a maintenance tax to be paid on an annual,
65-10 semiannual, or other periodic basis, as determined by the
65-11 comptroller. The rate of assessment may not exceed .04 percent of
65-12 the correctly reported gross premiums of life, health, and accident
65-13 insurance coverages and the gross considerations for annuity and
65-14 endowment contracts collected by all authorized insurers writing
65-15 life, health, and accident insurance, annuity, or endowment
65-16 contracts in this state. The comptroller shall collect the
65-17 maintenance tax. For purposes of this article, the gross premiums
65-18 on which an assessment is based may not include premiums received
65-19 from this state or the United States for insurance contracted for
65-20 by this state or the United States for the purpose of providing
65-21 welfare benefits to designated welfare recipients or for insurance
65-22 contracted for by this state or the United States in accordance
65-23 with or in furtherance of Title 2, Human Resources Code, or the
65-24 federal Social Security Act (42 U.S.C. Section 301 et seq.).
65-25 SECTION 72. Subdivision (4), Subsection (b), Section 32,
66-1 Texas Health Maintenance Organization Act (Article 20A.32, Vernon's
66-2 Texas Insurance Code), is amended to read as follows:
66-3 (4) A [The amount directly attributable to an
66-4 examination of the books, records, accounts, or principal offices
66-5 of a health maintenance organization located outside this state may
66-6 not be allowed as a] credit against the amount of premium taxes to
66-7 be paid by the health maintenance organization in a taxable year
66-8 may not be allowed on:
66-9 (A) expenses directly attributable to an
66-10 examination of the books, records, accounts, or principal offices
66-11 of a health maintenance organization located outside this state;
66-12 (B) examination expenses or fees paid to a state
66-13 other than this state; or
66-14 (C) examination fees paid in a different taxable
66-15 year.
66-16 SECTION 73. Subsection (d), Section 33, Texas Health
66-17 Maintenance Organization Act (Article 20A.33, Vernon's Texas
66-18 Insurance Code), is amended to read as follows:
66-19 (d) The commissioner shall annually determine the rate of
66-20 assessment of a per capita maintenance tax to be paid on an annual
66-21 or semiannual basis, on the correctly reported gross revenues for
66-22 the issuance of health maintenance certificates or contracts
66-23 collected by all authorized health maintenance organizations
66-24 issuing such coverages in this state. The rate of assessment may
66-25 not exceed $2 for each enrollee. The rate of assessment may differ
67-1 between basic health care plans and single health care service
67-2 plans and shall equitably reflect any differences in regulatory
67-3 resources attributable to each type of plan. The comptroller shall
67-4 collect the maintenance tax. For purposes of this section, the
67-5 amount of maintenance tax assessed may not be computed on enrollees
67-6 who as individual certificate holders or their dependents are
67-7 covered by a master group policy paid for by revenues received from
67-8 this state or the United States for insurance contracted for by
67-9 this state or the United States for the purpose of providing
67-10 welfare benefits to designated welfare recipients or for insurance
67-11 contracted for by this state or the United States in accordance
67-12 with or in furtherance of Title 2, Human Resources Code, or the
67-13 federal Social Security Act (42 U.S.C. Section 301 et seq.).
67-14 SECTION 74. Section 111.0022, Tax Code, as added by Section
67-15 3.28, Chapter 685, Acts of the 73rd Legislature, 1993, is repealed.
67-16 SECTION 75. The following provisions of the Tax Code are
67-17 repealed:
67-18 (1) Section 111.1041;
67-19 (2) Section 154.048; and
67-20 (3) Section 154.049.
67-21 SECTION 76. In addition to duties prescribed by other law,
67-22 any state agency responsible for compliance with Section 1926 of
67-23 the federal Public Health Service Act (42 U.S.C. Section 300x-26)
67-24 regarding the sale of tobacco products to individuals under the age
67-25 of 18 shall file with the comptroller of public accounts a copy of
68-1 the reports and agreements required under such federal act. If the
68-2 state agency fails to file a copy of the reports and agreements
68-3 within 10 days after such information is due under Section 1926,
68-4 the comptroller shall withhold expense appropriations. The
68-5 comptroller may enter into agreements with the responsible state
68-6 agencies and may promulgate rules as necessary to facilitate
68-7 compliance.
68-8 SECTION 77. (a) Except as provided by Subsections (b) and
68-9 (c) of this section, this Act takes effect September 1, 1997.
68-10 (b) Sections 11 through 14, 18 through 20, 22 through 33,
68-11 35, 37, and 38 of this Act take effect October 1, 1997.
68-12 (c) Sections 111.107, 153.119(e), 153.1195(e), 153.121(d),
68-13 153.2225(e), and 153.224(d), Tax Code, as amended or added by this
68-14 Act, take effect October 1, 1997, and apply to gasoline or diesel
68-15 fuel acquired on or after that date. Gasoline or diesel fuel
68-16 acquired before that date is governed by the law in effect when the
68-17 gasoline or diesel fuel was acquired and that law is continued in
68-18 effect for the collection or refund of taxes.
68-19 SECTION 78. The changes made to Sections 202.201 and
68-20 202.202, Tax Code, by this Act take effect January 1, 1998, and
68-21 apply to a report due on or after that date.
68-22 SECTION 79. The change in law made by this Act to Section
68-23 201.057, Tax Code, takes effect September 1, 1997. A person who is
68-24 otherwise qualified to file an application for certification of
68-25 high-cost gas with the Railroad Commission of Texas may file an
S.B. No. 862
69-1 application under Section 201.057, Tax Code, as amended by this
69-2 Act, regardless of the date on which the gas was first produced.
69-3 SECTION 80. The importance of this legislation and the
69-4 crowded condition of the calendars in both houses create an
69-5 emergency and an imperative public necessity that the
69-6 constitutional rule requiring bills to be read on three several
69-7 days in each house be suspended, and this rule is hereby suspended.
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 862 passed the Senate on
April 10, 1997, by the following vote: Yeas 31, Nays 0;
May 29, 1997, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 30, 1997, House
granted request of the Senate; June 1, 1997, Senate adopted
Conference Committee Report by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 862 passed the House, with
amendments, on May 27, 1997, by the following vote: Yeas 137,
Nays 3, two present not voting; May 30, 1997, House granted request
of the Senate for appointment of Conference Committee;
June 1, 1997, House adopted Conference Committee Report by a
non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor