By: Zaffirini S.B. No. 1280
2001S0733/1
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 applicant or a person required to
1-20 hold a permit under this chapter. The term does not include a
1-21 residence or a unit of a public storage facility in which
1-22 cigarettes are stored or kept.
1-23 (4) "Common carrier" means a motor carrier registered
1-24 under Chapter 643, Transportation Code, or a motor carrier
1-25 operating under a certificate issued by the Interstate Commerce
2-1 Commission or a successor agency to the Interstate Commerce
2-2 Commission.
2-3 (5) [(4)] "Consumer" means a person who possesses
2-4 cigarettes for personal consumption.
2-5 (6) [(5)] "Counterfeit stamp" means a sticker, label,
2-6 print, tag, or token that is used or is intended to be used to
2-7 simulate a stamp and that is not authorized or issued by the
2-8 comptroller.
2-9 (7) [(6)] "Distributor" means a person who:
2-10 (A) is authorized to purchase for the purpose of
2-11 making a first sale in this state cigarettes in unstamped packages
2-12 from manufacturers who distribute cigarettes in this state and to
2-13 stamp cigarette packages;
2-14 (B) ships, transports, imports into this state,
2-15 acquires, or possesses cigarettes and makes a first sale of the
2-16 cigarettes in this state;
2-17 (C) manufactures or produces cigarettes; or
2-18 (D) is an importer or import broker.
2-19 (8) [(7)] "Export warehouse" means a person in this
2-20 state who receives cigarettes in unstamped packages from
2-21 manufacturers and stores the cigarettes for the purpose of making
2-22 sales to authorized persons for resale, use, or consumption outside
2-23 the United States.
2-24 (9) [(8)] "First sale" means, except as otherwise
2-25 provided by this chapter:
2-26 (A) the first transfer of possession in
3-1 connection with a purchase, sale, or any exchange for value of
3-2 cigarettes in intrastate commerce;
3-3 (B) the first use or consumption of cigarettes
3-4 in this state; or
3-5 (C) the loss of cigarettes in this state whether
3-6 through negligence, theft, or other unaccountable loss.
3-7 (10) [(9)] "Importer" or "import broker" means a
3-8 person who ships, transports, or imports into this state cigarettes
3-9 manufactured or produced outside the United States for the purpose
3-10 of making a first sale in this state.
3-11 (11) [(10)] "Individual package of cigarettes" means a
3-12 package that contains not fewer than 10 cigarettes.
3-13 (12) [(11)] "Manufacturer" means a person who
3-14 manufactures and sells cigarettes to a distributor.
3-15 (13) [(12)] "Manufacturer's representative" means a
3-16 person employed by a manufacturer to sell or distribute the
3-17 manufacturer's stamped cigarette packages.
3-18 (14) [(13)] "Permit holder" means a bonded agent,
3-19 distributor, wholesaler, or retailer required to obtain a permit
3-20 under Section 154.101.
3-21 (15) [(14)] "Place of business" means:
3-22 (A) a commercial business location where
3-23 cigarettes are sold;
3-24 (B) a commercial business location where
3-25 cigarettes are kept for sale or consumption or otherwise stored; or
3-26 (C) a vehicle from which cigarettes are sold.
4-1 (16) [(15)] "Previously used stamp" means a stamp that
4-2 has been used to show payment of a tax imposed by this chapter and
4-3 is again used, sold, or possessed for sale or use to show payment
4-4 of a tax imposed by this chapter.
4-5 (17) [(16)] "Retailer" means a person who engages in
4-6 the practice of selling cigarettes to consumers and includes the
4-7 owner of a coin-operated cigarette vending machine.
4-8 (18) [(17)] "Stamp" includes only a stamp that:
4-9 (A) is printed, manufactured, or made by
4-10 authority of the comptroller;
4-11 (B) shows payment of the tax imposed by this
4-12 chapter; and
4-13 (C) is consecutively numbered and uniquely
4-14 identifiable as a Texas tax stamp.
4-15 (19) [(18)] "Wholesaler" means a person, including a
4-16 manufacturer's representative, who sells or distributes cigarettes
4-17 in this state for resale but who is not a distributor.
4-18 SECTION 2. Subsection (b), Section 154.209, Tax Code, is
4-19 amended to read as follows:
4-20 (b) If a permit holder's place of business is a vehicle or a
4-21 vending machine, the permit holder shall designate in the
4-22 application for a permit a permanent place of business to keep the
4-23 records. The permit holder shall keep the records in the
4-24 designated place.
4-25 SECTION 3. Section 155.001, Tax Code, is amended to read as
4-26 follows:
5-1 Sec. 155.001. DEFINITIONS. In this chapter:
5-2 (1) "Bonded agent" means a person in this state who is
5-3 an agent of a person outside this state and receives cigars and
5-4 tobacco products in interstate commerce and stores the cigars and
5-5 tobacco products for distribution or delivery to distributors under
5-6 orders from the person outside this state.
5-7 (2) "Cigar" means a roll of fermented tobacco that is
5-8 wrapped in tobacco and the main stream of smoke from which produces
5-9 an alkaline reaction to litmus paper.
5-10 (3) "Commercial business location" means the entire
5-11 premises occupied by a permit applicant or a person required to
5-12 hold a permit under this chapter. The term does not include a
5-13 residence or a unit of a public storage facility in which tobacco
5-14 products are stored or kept.
5-15 (4) "Common carrier" means a motor carrier registered
5-16 under Chapter 643, Transportation Code, or a motor carrier
5-17 operating under a certificate issued by the Interstate Commerce
5-18 Commission or a successor agency to the Interstate Commerce
5-19 Commission.
5-20 (5) [(4)] "Consumer" means a person who possesses
5-21 tobacco products for personal consumption.
5-22 (6) [(5)] "Distributor" means a person who:
5-23 (A) receives tobacco products for the purpose of
5-24 making a first sale in this state from a manufacturer outside the
5-25 state or within the state or otherwise brings or causes to be
5-26 brought into this state tobacco products for sale, use, or
6-1 consumption;
6-2 (B) manufactures or produces tobacco products;
6-3 or
6-4 (C) is an importer or import broker.
6-5 (7) [(6)] "Export warehouse" means a person in this
6-6 state who receives tobacco products from manufacturers and stores
6-7 the tobacco products for the purpose of making sales to authorized
6-8 persons for resale, use, or consumption outside the United States.
6-9 (8) [(7)] "First sale" means, except as otherwise
6-10 provided by this chapter:
6-11 (A) the first transfer of possession in
6-12 connection with a purchase, sale, or any exchange for value of
6-13 tobacco products in intrastate commerce;
6-14 (B) the first use or consumption of tobacco
6-15 products in this state; or
6-16 (C) the loss of tobacco products in this state
6-17 whether through negligence, theft, or other unaccountable loss.
6-18 (9) [(8)] "Importer" or "import broker" means a person
6-19 who ships, transports, or imports into this state tobacco products
6-20 manufactured or produced outside the United States for the purpose
6-21 of making a first sale in this state.
6-22 (10) [(9)] "Manufacturer" means a person who
6-23 manufactures or produces tobacco products and sells tobacco
6-24 products to a distributor.
6-25 (11) [(10)] "Manufacturer's representative" means a
6-26 person employed by a manufacturer to sell or distribute the
7-1 manufacturer's tobacco products.
7-2 (12) [(11)] "Permit holder" means a bonded agent,
7-3 distributor, wholesaler, or retailer required to obtain a permit
7-4 under Section 155.041.
7-5 (13) [(12)] "Place of business" means:
7-6 (A) a commercial business location where tobacco
7-7 products are sold;
7-8 (B) a commercial business location where tobacco
7-9 products are kept for sale or consumption or otherwise stored; or
7-10 (C) a vehicle from which tobacco products are
7-11 sold.
7-12 (14) [(13)] "Retailer" means a person who engages in
7-13 the practice of selling tobacco products to consumers and includes
7-14 the owner of a coin-operated vending machine.
7-15 (15) [(14)] "Tobacco product" means:
7-16 (A) a cigar;
7-17 (B) smoking tobacco, including granulated,
7-18 plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable
7-19 for smoking in a pipe or as a cigarette;
7-20 (C) chewing tobacco, including Cavendish, Twist,
7-21 plug, scrap, and any kind of tobacco suitable for chewing;
7-22 (D) snuff or other preparations of pulverized
7-23 tobacco; or
7-24 (E) an article or product that is made of
7-25 tobacco or a tobacco substitute and that is not a cigarette.
7-26 (16) [(15)] "Wholesaler" means a person, including a
8-1 manufacturer's representative, who sells or distributes tobacco
8-2 products in this state for resale but who is not a distributor.
8-3 SECTION 4. Subsection (b), Section 155.110, Tax Code, is
8-4 amended to read as follows:
8-5 (b) If a permit holder's place of business is a vehicle or a
8-6 vending machine, the permit holder shall designate in the
8-7 application for a permit a permanent place of business to keep the
8-8 records. The permit holder shall keep the records in the
8-9 designated place.
8-10 SECTION 5. This Act takes effect September 1, 2001.