By Ritter H.B. No. 2413
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the tax on cigarettes, cigars, and other tobacco
1-3 products.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 154.001, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 154.001. DEFINITIONS. In this chapter:
1-8 (1) "Bonded agent" means a person in this state who is
1-9 an agent of a person outside this state and receives cigarettes in
1-10 interstate commerce and stores the cigarettes for distribution or
1-11 delivery to distributors under orders from the person outside this
1-12 state.
1-13 (2) "Cigarette" means a roll for smoking:
1-14 (A) that is made of tobacco or tobacco mixed
1-15 with another ingredient and wrapped or covered with a material
1-16 other than tobacco; and
1-17 (B) that is not a cigar.
1-18 (3) "Commercial business location" means the entire
1-19 premises occupied by a permit application or a person required to
1-20 hold a permit under this chapter. The premises where cigarettes
1-21 are stored or kept cannot be a residence or a unit in a public
1-22 storage facility.
2-1 (4) [3] "Common carrier" means a motor carrier
2-2 [registered under Chapter 643, Transportation Code, or a motor
2-3 carrier] operating under a certificate issued by the United States
2-4 Department of Transportation [Interstate Commerce Commission or a
2-5 successor agency to the Interstate Commerce Commission] that
2-6 transports cigarettes in which the carrier has no ownership or
2-7 other pecuniary interest.
2-8 (5) [(4)] "Consumer" means a person who possesses
2-9 cigarettes for personal consumption.
2-10 (6) [(5)] "Counterfeit stamp" means a sticker, label,
2-11 print, tag, or token that is used or is intended to be used to
2-12 simulate a stamp and that is not authorized or issued by the
2-13 comptroller.
2-14 (7) [(6)] "Distributor" means a person who:
2-15 (A) is authorized to purchase for the purpose of
2-16 making a first sale in this state cigarettes in unstamped packages
2-17 from manufacturers who distribute cigarettes in this state and to
2-18 stamp cigarette packages;
2-19 (B) ships, transports, imports into this state,
2-20 acquires, or possesses cigarettes and makes a first sale of the
2-21 cigarettes in this state;
2-22 (C) manufactures or produces cigarettes; or
2-23 (D) is an importer or import broker.
2-24 (8) [(7)] "Export warehouse" means a person in this
2-25 state who receives cigarettes in unstamped packages from
2-26 manufacturers and stores the cigarettes for the purpose of making
3-1 sales to authorized persons for resale, use, or consumption outside
3-2 the United States.
3-3 (9) [(8)] "First sale" means, except as otherwise
3-4 provided by this chapter:
3-5 (A) the first transfer of possession in
3-6 connection with a purchase, sale, or any exchange for value of
3-7 cigarettes in intrastate commerce;
3-8 (B) the first use or consumption of cigarettes
3-9 in this state; or
3-10 (C) the loss of cigarettes in this state whether
3-11 through negligence, theft, or other unaccountable loss.
3-12 (10) [(9)] "Importer" or "import broker" means a
3-13 person who ships, transports, or imports into this state cigarettes
3-14 manufactured or produced outside the United States for the purpose
3-15 of making a first sale in this state.
3-16 (11) [(10)] "Individual package of cigarettes" means a
3-17 package that contains not fewer than 10 cigarettes.
3-18 (12) [(11)] "Manufacturer" means a person who
3-19 manufactures and sells cigarettes to a distributor.
3-20 (13) [(12)] "Manufacturer's representative" means a
3-21 person employed by a manufacturer to sell or distribute the
3-22 manufacturer's stamped cigarette packages.
3-23 (14) [(13)] "Permit holder" means a bonded agent,
3-24 distributor, wholesaler, or retailer required to obtain a permit
3-25 under Section 154.101.
3-26 (15) [(14)] "Place of business" means:
4-1 (A) a commercial business location where
4-2 cigarettes are sold;
4-3 (B) a commercial business location where
4-4 cigarettes are kept for sale or consumption or otherwise stored; or
4-5 (C) a vehicle from which cigarettes are sold.
4-6 (16) [(15)] "Previously used stamp" means a stamp that
4-7 has been used to show payment of a tax imposed by this chapter and
4-8 is again used, sold, or possessed for sale or use to show payment
4-9 of a tax imposed by this chapter.
4-10 (17) [(16)] "Retailer" means a person who engages in
4-11 the practice of selling cigarettes to consumers and includes the
4-12 owner of a coin-operated cigarette vending machine.
4-13 (18) [(17)] "Stamp" includes only a stamp that:
4-14 (A) is printed, manufactured, or made by
4-15 authority of the comptroller;
4-16 (B) shows payment of the tax imposed by this
4-17 chapter; and
4-18 (C) is consecutively numbered and uniquely
4-19 identifiable as a Texas tax stamp.
4-20 (19) [(18)] "Wholesaler" means a person, including a
4-21 manufacturer's representative, who sells or distributes cigarettes
4-22 in this state for resale but who is not a distributor.
4-23 SECTION 2. Section 154.209(b), Tax Code, is amended to read
4-24 as follows:
4-25 (b) If a permit holder's place of business is a vehicle or a
4-26 vending machine, the permit holder shall designate in the
5-1 application for a permit a permanent place of business to keep the
5-2 records. The permit holder shall keep the records in the
5-3 designated place.
5-4 SECTION 3. Section 155.001, Tax Code, is amended to read as
5-5 follows:
5-6 Sec. 155.001. DEFINITIONS. In this chapter:
5-7 (1) "Bonded agent" means a person in this state who is
5-8 an agent of a person outside this state and receives cigars and
5-9 tobacco products in interstate commerce and stores the cigars and
5-10 tobacco products for distribution or delivery to distributors under
5-11 orders from the person outside this state.
5-12 (2) "Cigar" means a roll of fermented tobacco that is
5-13 wrapped in tobacco and the main stream of smoke from which produces
5-14 an alkaline reaction to litmus paper.
5-15 (3) "Commercial business location" means the entire
5-16 premises occupied by a permit applicant or a person required to
5-17 hold a permit under this chapter. The premises where tobacco
5-18 products are stored or kept cannot be a residence or a unit in a
5-19 public storage facility.
5-20 (4) [(3)] "Common carrier" means a motor carrier
5-21 [registered under Chapter 643, Transportation Code, or a motor
5-22 carrier] operating under a certificate issued by the United States
5-23 Department of Transportation [Interstate Commerce Commission or a
5-24 successor agency to the Interstate Commerce Commission] that
5-25 transports tobacco products in which the carrier has no ownership
5-26 or other pecuniary interest.
6-1 (5) [(4)] "Consumer" means a person who possesses
6-2 tobacco products for personal consumption.
6-3 (6) [(5)] "Distributor" means a person who:
6-4 (A) receives tobacco products for the purpose of
6-5 making a first sale in this state from a manufacturer outside the
6-6 state or within the state or otherwise brings or causes to be
6-7 brought into this state tobacco products for sale, use, or
6-8 consumption;
6-9 (B) manufactures or produces tobacco products;
6-10 or
6-11 (C) is an importer or import broker.
6-12 (7) [(6)] "Export warehouse" means a person in this
6-13 state who receives tobacco products from manufacturers and stores
6-14 the tobacco products for the purpose of making sales to authorized
6-15 persons for resale, use, or consumption outside the United States.
6-16 (8) [(7)] "First sale" means, except as otherwise
6-17 provided by this chapter:
6-18 (A) the first transfer of possession in
6-19 connection with a purchase, sale, or any exchange for value of
6-20 tobacco products in intrastate commerce;
6-21 (B) the first use or consumption of tobacco
6-22 products in this state; or
6-23 (C) the loss of tobacco products in this state
6-24 whether through negligence, theft, or other unaccountable loss.
6-25 (9) [(8)] "Importer" or "import broker" means a person
6-26 who ships, transports, or imports into this state tobacco products
7-1 manufactured or produced outside the United States for the purpose
7-2 of making a first sale in this state.
7-3 (10) [(9)] "Manufacturer" means a person who
7-4 manufactures or produces tobacco products and sells tobacco
7-5 products to a distributor.
7-6 (11) [(10)] "Manufacturer's representative" means a
7-7 person employed by a manufacturer to sell or distribute the
7-8 manufacturer's tobacco products.
7-9 (12) [(11)] "Permit holder" means a bonded agent,
7-10 distributor, wholesaler, or retailer required to obtain a permit
7-11 under Section 155.041.
7-12 (13) [(12)] "Place of business" means:
7-13 (A) a commercial business location where tobacco
7-14 products are sold;
7-15 (B) a commercial business location where tobacco
7-16 products are kept for sale or consumption or otherwise stored; or
7-17 (C) a vehicle from which tobacco products are
7-18 sold.
7-19 (14) [(13)] "Retailer" means a person who engages in
7-20 the practice of selling tobacco products to consumers and includes
7-21 the owner of a coin-operated vending machine.
7-22 (15) [(14)] "Tobacco product" means:
7-23 (A) a cigar;
7-24 (B) smoking tobacco, including granulated,
7-25 plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable
7-26 for smoking in a pipe or as a cigarette;
8-1 (C) chewing tobacco, including Cavendish, Twist,
8-2 plug, scrap, and any kind of tobacco suitable for chewing;
8-3 (D) snuff or other preparations of pulverized
8-4 tobacco; or
8-5 (E) an article or product that is made of
8-6 tobacco or a tobacco substitute and that is not a cigarette.
8-7 (16) [(15)] "Wholesaler" means a person, including a
8-8 manufacturer's representative, who sells or distributes tobacco
8-9 products in this state for resale but who is not a distributor.
8-10 SECTION 4. Section 155.110(b), Tax Code, is amended to read
8-11 as follows:
8-12 (b) If a permit holder's place of business is a vehicle, or
8-13 a vending machine, the permit holder shall designate in the
8-14 application for a permit a permanent place of business to keep the
8-15 records. The permit holder shall keep the records in the
8-16 designated place.
8-17 SECTION 5. This act takes effect September 1, 2001.