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A BILL TO BE ENTITLED
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AN ACT
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relating to the cigars and tobacco products tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 155, Tax Code, Section |
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155.001 is amended to read as follows: |
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Sec. 155.001. DEFINITIONS. In this chapter: |
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(1-a) "Affiliate" means a person who controls, is controlled by, |
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or is under common control with another person. |
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(1-b) "Bonded agent" means a person in this state who is an agent |
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of a person outside this state and receives cigars and tobacco |
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products in interstate commerce and stores the cigars and tobacco |
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products for distribution or delivery to distributors under orders |
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from the person outside this state. |
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(2) "Cigar" means a roll of fermented tobacco that is wrapped in |
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tobacco and the main stream of smoke from which produces an alkaline |
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reaction to litmus paper. |
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(3) "Commercial business location" means the entire premises |
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occupied by a permit applicant or a person required to hold a permit |
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under this chapter. |
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(4) "Common carrier" means a motor carrier registered under |
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Chapter 643, Transportation Code, or a motor carrier operating |
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under a certificate issued by the Interstate Commerce Commission or |
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a successor agency to the Interstate Commerce Commission. |
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(5) "Consumer" means a person who possesses tobacco products for |
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personal consumption. |
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(6) "Distributor" means a person who: |
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(A) receives tobacco products for the purpose of making a |
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first sale in this state from a manufacturer outside the state or |
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within the state or otherwise brings or causes to be brought into |
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this state tobacco products for sale, use, or consumption; |
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(B) manufactures or produces tobacco products; or |
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(C) is an importer or import broker. |
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(7) "Export warehouse" means a person in this state who receives |
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tobacco products from manufacturers and stores the tobacco products |
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for the purpose of making sales to authorized persons for resale, |
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use, or consumption outside the United States. |
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(8) "First sale" means, except as otherwise provided by this |
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chapter: |
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(A) the first transfer of possession in connection with a |
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purchase, sale, or any exchange for value of tobacco products in |
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intrastate commerce; |
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(B) the first use or consumption of tobacco products in this |
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state; or |
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(C) the loss of tobacco products in this state whether |
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through negligence, theft, or other unaccountable loss. |
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(9) "Importer" or "import broker" means a person who ships, |
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transports, or imports into this state tobacco products |
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manufactured or produced outside the United States for the purpose |
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of making a first sale in this state. |
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(10) "Manufacturer" means a person who manufactures or produces |
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tobacco products and sells tobacco products to a distributor or an |
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affiliate of the person. |
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(11) "Manufacturer's representative" means a person employed by a |
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manufacturer to sell or distribute the manufacturer's tobacco |
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products. |
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(12) "Permit holder" means a bonded agent, distributor, |
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wholesaler, manufacturer, importer, or retailer required to obtain |
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a permit under Section 155.041. |
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(13) "Place of business" means: |
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(A) a commercial business location where tobacco products |
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are sold; |
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(B) a commercial business location where tobacco products |
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are kept for sale or consumption or otherwise stored; or |
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(C) a vehicle from which tobacco products are sold. |
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(14) "Retailer" means a person who engages in the practice of |
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selling tobacco products to consumers and includes the owner of a |
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coin-operated vending machine. |
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(15) "Tobacco product" means: |
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(A) a cigar; |
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(B) smoking tobacco, including granulated, plug-cut, |
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crimp-cut, ready-rubbed, and any form of tobacco suitable for |
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smoking in a pipe or as a cigarette; |
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(C) chewing tobacco, including Cavendish, Twist, plug, |
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scrap, and any kind of tobacco suitable for chewing; |
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(D) snuff or other preparations of pulverized tobacco; or |
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(E) an article or product that is made of tobacco or a |
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tobacco substitute and that is not a cigarette. |
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(16) "Wholesaler" means a person, including a manufacturer's |
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representative, who sells or distributes tobacco products in this |
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state for resale but who is not a distributor. |
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SECTION 2. This Act takes effect September 1, 2009. |