By Bonnen H.B. No. 1098
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the collection of taxes on printed materials
1-3 distributed by mail.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.052, Tax Code, is amended by amending
1-6 Subsection (a) and adding Subsection (d) to read as follows:
1-7 (a) Except as provided by Subsection (d), a [A] seller who
1-8 makes a sale subject to the sales tax imposed by this chapter shall
1-9 add the amount of the tax to the sales price, and when the amount
1-10 of the tax is added:
1-11 (1) it becomes a part of the sales price;
1-12 (2) it is a debt of the purchaser to the seller until
1-13 paid; and
1-14 (3) if unpaid, it is recoverable at law in the same
1-15 manner as the original sales price.
1-16 (d) For purposes of the printer's tax collection duty, it is
1-17 presumed that printed materials that are distributed by the United
1-18 States Postal Service singly or in sets addressed to individual
1-19 recipients, other than the purchaser, and that are either produced
1-20 at a printer's facility in this state or purchased in this state
1-21 are for use in Texas and the printer must collect the tax imposed
1-22 under this chapter. In order to overcome this presumption a
1-23 purchaser of printed materials that are distributed by the United
1-24 States Postal Service singly or in sets addressed to individual
2-1 recipients, other than the purchaser, is required to issue an
2-2 exemption certificate to the printer if the printed materials are
2-3 for distribution to both in-state and out-of-state recipients. The
2-4 certificate must contain the statement that the printed materials
2-5 are for multistate use and that the purchaser agrees to pay to this
2-6 state all taxes that are or may become due to the state on the
2-7 taxable items purchased under the exemption certificate. In this
2-8 subsection, "printed materials" is defined to be materials that are
2-9 produced by web offset or rotogravure printing processes. A
2-10 printer is relieved of the obligation of collecting the taxes
2-11 imposed by this chapter on printed materials that are distributed
2-12 by the United States Postal Service singly or in sets addressed to
2-13 individual recipients, other than the purchaser, but is required to
2-14 file a report as provided by Section 151.407.
2-15 SECTION 2. Subsection (a), Section 151.103, Tax Code, is
2-16 amended to read as follows:
2-17 (a) Except as provided by Section 151.052(d), a [A] retailer
2-18 engaged in business in this state who makes a sale of a taxable
2-19 item for storage, use, or consumption in this state shall collect
2-20 the use tax that is due from the purchaser and give the purchaser a
2-21 receipt for the tax payment. When the amount of use tax is added:
2-22 (1) it becomes a part of the sales price;
2-23 (2) it is a debt of the purchaser to the seller until
2-24 paid; and
2-25 (3) if unpaid, it is recoverable at law in the same
2-26 manner as the original sales price.
2-27 SECTION 3. The comptroller of public accounts of the State
3-1 of Texas may adopt rules and forms to implement the collection
3-2 requirements provided by Subsection (d), Section 151.052, Tax Code,
3-3 as added by this Act.
3-4 SECTION 4. (a) The change in law made by this Act affects
3-5 only the printer and does not create a new tax or tax exemption or
3-6 affect the imposition of a tax or the granting of an exemption
3-7 under Chapter 151, Tax Code.
3-8 (b) The legislature, by enacting this bill, expressly makes
3-9 no statement, directly or implied, as to the existence or lack of
3-10 existence of a tax liability on items mailed into this state.
3-11 Neither this Act nor the action of this legislature shall be
3-12 construed to affirm or deny the existence of any such tax
3-13 liability.
3-14 SECTION 5. (a) The change in law made by this Act applies
3-15 only to the duty to collect a sales or use tax for a transaction
3-16 that occurs on or after the effective date of this Act.
3-17 (b) The duty to collect a sales or use tax for a transaction
3-18 that occurs before the effective date of this Act is governed by
3-19 the law in effect at the time of the transaction, and the former
3-20 law is continued in effect for that purpose.
3-21 SECTION 6. This Act takes effect July 1, 2001, if it
3-22 receives a vote of two-thirds of all the members elected to each
3-23 house, as provided by Section 39, Article III, Texas Constitution.
3-24 If this Act does not receive the vote necessary for effect on that
3-25 date, this Act takes effect September 1, 2001.