1-1 By: Bonnen (Senate Sponsor - Duncan) H.B. No. 1098
1-2 (In the Senate - Received from the House April 9, 2001;
1-3 April 9, 2001, read first time and referred to Committee on
1-4 Finance; April 30, 2001, reported favorably by the following vote:
1-5 Yeas 11, Nays 0; April 30, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the collection of taxes on printed materials
1-9 distributed by mail.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 151.052, Tax Code, is amended by amending
1-12 Subsection (a) and adding Subsection (d) to read as follows:
1-13 (a) Except as provided by Subsection (d), a [A] seller who
1-14 makes a sale subject to the sales tax imposed by this chapter shall
1-15 add the amount of the tax to the sales price, and when the amount
1-16 of the tax is added:
1-17 (1) it becomes a part of the sales price;
1-18 (2) it is a debt of the purchaser to the seller until
1-19 paid; and
1-20 (3) if unpaid, it is recoverable at law in the same
1-21 manner as the original sales price.
1-22 (d) For purposes of the printer's tax collection duty, it is
1-23 presumed that printed materials that are distributed by the United
1-24 States Postal Service singly or in sets addressed to individual
1-25 recipients, other than the purchaser, and that are either produced
1-26 at a printer's facility in this state or purchased in this state
1-27 are for use in Texas and the printer must collect the tax imposed
1-28 under this chapter. In order to overcome this presumption a
1-29 purchaser of printed materials that are distributed by the United
1-30 States Postal Service singly or in sets addressed to individual
1-31 recipients, other than the purchaser, is required to issue an
1-32 exemption certificate to the printer if the printed materials are
1-33 for distribution to both in-state and out-of-state recipients. The
1-34 certificate must contain the statement that the printed materials
1-35 are for multistate use and that the purchaser agrees to pay to this
1-36 state all taxes that are or may become due to the state on the
1-37 taxable items purchased under the exemption certificate. In this
1-38 subsection, "printed materials" is defined to be materials that are
1-39 produced by web offset or rotogravure printing processes. A
1-40 printer is relieved of the obligation of collecting the taxes
1-41 imposed by this chapter on printed materials that are distributed
1-42 by the United States Postal Service singly or in sets addressed to
1-43 individual recipients, other than the purchaser, but is required to
1-44 file a report as provided by Section 151.407.
1-45 SECTION 2. Subsection (a), Section 151.103, Tax Code, is
1-46 amended to read as follows:
1-47 (a) Except as provided by Section 151.052(d), a [A] retailer
1-48 engaged in business in this state who makes a sale of a taxable
1-49 item for storage, use, or consumption in this state shall collect
1-50 the use tax that is due from the purchaser and give the purchaser a
1-51 receipt for the tax payment. When the amount of use tax is added:
1-52 (1) it becomes a part of the sales price;
1-53 (2) it is a debt of the purchaser to the seller until
1-54 paid; and
1-55 (3) if unpaid, it is recoverable at law in the same
1-56 manner as the original sales price.
1-57 SECTION 3. The comptroller of public accounts of the State
1-58 of Texas may adopt rules and forms to implement the collection
1-59 requirements provided by Subsection (d), Section 151.052, Tax Code,
1-60 as added by this Act.
1-61 SECTION 4. (a) The change in law made by this Act affects
1-62 only the printer and does not create a new tax or tax exemption or
1-63 affect the imposition of a tax or the granting of an exemption
1-64 under Chapter 151, Tax Code.
2-1 (b) The legislature, by enacting this bill, expressly makes
2-2 no statement, directly or implied, as to the existence or lack of
2-3 existence of a tax liability on items mailed into this state.
2-4 Neither this Act nor the action of this legislature shall be
2-5 construed to affirm or deny the existence of any such tax
2-6 liability.
2-7 SECTION 5. (a) The change in law made by this Act applies
2-8 only to the duty to collect a sales or use tax for a transaction
2-9 that occurs on or after the effective date of this Act.
2-10 (b) The duty to collect a sales or use tax for a transaction
2-11 that occurs before the effective date of this Act is governed by
2-12 the law in effect at the time of the transaction, and the former
2-13 law is continued in effect for that purpose.
2-14 SECTION 6. This Act takes effect July 1, 2001, if it
2-15 receives a vote of two-thirds of all the members elected to each
2-16 house, as provided by Section 39, Article III, Texas Constitution.
2-17 If this Act does not receive the vote necessary for effect on that
2-18 date, this Act takes effect September 1, 2001.
2-19 * * * * *