| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to imposing a tax on certain sweetened beverages and |
|
|
ingredients used to make certain sweetened beverages; providing a |
|
|
penalty. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by |
|
|
adding Chapter 164 to read as follows: |
|
|
CHAPTER 164. TAX ON SWEETENED BEVERAGES |
|
|
SUBCHAPTER A. GENERAL PROVISIONS |
|
|
Sec. 164.001. DEFINITIONS. In this chapter: |
|
|
(1) "Retailer" means a person, other than a |
|
|
manufacturer, distributor, or wholesaler, who receives, stores, |
|
|
mixes, compounds, or manufactures sweetened beverages and who sells |
|
|
or otherwise distributes sweetened beverages in this state to the |
|
|
ultimate consumer. |
|
|
(2) "Sweetened beverage" means a carbonated or |
|
|
non-carbonated nonalcoholic beverage that contains natural or |
|
|
artificial sweeteners. The term does not include: |
|
|
(A) a beverage that: |
|
|
(i) is sweetened only by a sweetener that |
|
|
does not add calories to the beverage; |
|
|
(ii) is 100 percent vegetable or fruit |
|
|
juice by volume; |
|
|
(iii) contains more than one-half of one |
|
|
percent alcohol per ounce; or |
|
|
(iv) is intended by the manufacturer for |
|
|
consumption by an infant and is commonly referred to as "infant |
|
|
formula"; |
|
|
(B) milk or milk products that do not contain |
|
|
sweeteners that add calories to the milk or milk products; |
|
|
(C) non-carbonated water or water without any |
|
|
additional substances except for minerals and flavoring agents that |
|
|
do not add calories to the water; or |
|
|
(D) coffee or tea that does not contain |
|
|
sweeteners that add calories to the coffee or tea. |
|
|
(3) "Sweetened beverage powder" means a solid mixture |
|
|
of basic ingredients used to make, mix, or compound sweetened |
|
|
beverages. |
|
|
(4) "Sweetened beverage syrup" means a liquid mixture |
|
|
of basic ingredients used to make, mix, or compound sweetened |
|
|
beverages. |
|
|
Sec. 164.002. RULES. The comptroller may adopt rules |
|
|
necessary for the implementation of this chapter and the collection |
|
|
of taxes imposed by this chapter. |
|
|
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX |
|
|
Sec. 164.051. TAX IMPOSED ON SWEETENED BEVERAGES. (a) A |
|
|
tax is imposed on the sale to a retailer of a sweetened beverage in |
|
|
this state. |
|
|
(b) A tax is imposed on the importation into this state of a |
|
|
sweetened beverage for sale in this state to the ultimate consumer. |
|
|
(c) Except as provided by Subsection (d), the rate of the |
|
|
tax imposed by this section is one cent for each ounce or fractional |
|
|
part of an ounce of sweetened beverage. |
|
|
(d) On January 1 of each year, the comptroller shall |
|
|
increase the rate of the tax prescribed by Subsection (c) or in |
|
|
effect the preceding year, whichever is greater, by a percentage |
|
|
equal to the percentage increase in the most recent annual revised |
|
|
Consumer Price Index for All Urban Consumers, as published by the |
|
|
federal Bureau of Labor Statistics of the United States Department |
|
|
of Labor. |
|
|
Sec. 164.052. TAX IMPOSED ON SWEETENED BEVERAGE POWDER. |
|
|
(a) A tax is imposed on the sale to a retailer of sweetened beverage |
|
|
powder in this state. |
|
|
(b) A tax is imposed on the importation into this state of |
|
|
sweetened beverage powder for sale in this state to the ultimate |
|
|
consumer. |
|
|
(c) Except as provided by Subsection (d), the rate of the |
|
|
tax imposed by this section is one cent for the greater of: |
|
|
(1) each ounce or fractional part of an ounce of |
|
|
sweetened beverage that may be produced from the powder by |
|
|
following the manufacturer's directions; or |
|
|
(2) each ounce or fractional part of an ounce of |
|
|
sweetened beverage actually produced by the retailer, as determined |
|
|
by the comptroller. |
|
|
(d) On January 1 of each year, the comptroller shall |
|
|
increase the rate of the tax prescribed by Subsection (c) or in |
|
|
effect the preceding year, whichever is greater, by a percentage |
|
|
equal to the percentage increase in the most recent annual revised |
|
|
Consumer Price Index for All Urban Consumers, as published by the |
|
|
federal Bureau of Labor Statistics of the United States Department |
|
|
of Labor. |
|
|
Sec. 164.053. TAX IMPOSED ON SWEETENED BEVERAGE SYRUP. (a) |
|
|
A tax is imposed on the sale to a retailer of sweetened beverage |
|
|
syrup in this state. |
|
|
(b) A tax is imposed on the importation into this state of |
|
|
sweetened beverage syrup for sale in this state to the ultimate |
|
|
consumer. |
|
|
(c) Except as provided by Subsection (d), the rate of the |
|
|
tax imposed by this section is one cent for the greater of: |
|
|
(1) each ounce or fractional part of an ounce of |
|
|
sweetened beverage that may be produced from the syrup by following |
|
|
the manufacturer's directions; or |
|
|
(2) each ounce or fractional part of an ounce of |
|
|
sweetened beverage actually produced by the retailer, as determined |
|
|
by the comptroller. |
|
|
(d) On January 1 of each year, the comptroller shall |
|
|
increase the rate of the tax prescribed by Subsection (c) or in |
|
|
effect the preceding year, whichever is greater, by a percentage |
|
|
equal to the percentage increase in the most recent annual revised |
|
|
Consumer Price Index for All Urban Consumers, as published by the |
|
|
federal Bureau of Labor Statistics of the United States Department |
|
|
of Labor. |
|
|
Sec. 164.054. EXEMPTION FROM TAX. The tax imposed by this |
|
|
chapter does not apply to: |
|
|
(1) sweetened beverages that: |
|
|
(A) the comptroller determines are unsalable; or |
|
|
(B) this state is prohibited from taxing under |
|
|
federal law; or |
|
|
(2) a sale of sweetened beverages, sweetened beverage |
|
|
powder, or sweetened beverage syrup that occurs after a sale that is |
|
|
taxed under this chapter. |
|
|
Sec. 164.055. IMPACT OF TAX. The ultimate consumer or user |
|
|
in this state bears the impact of the tax imposed by this chapter. |
|
|
If another person pays the tax, the amount of the tax is added to the |
|
|
price to the ultimate consumer or user. |
|
|
Sec. 164.056. PAYMENT OF TAX. (a) The manufacturer, |
|
|
distributor, wholesaler, or other person selling sweetened |
|
|
beverages, sweetened beverage syrup, or sweetened beverage powder |
|
|
in this state to a retailer or importing sweetened beverages, |
|
|
sweetened beverage syrup, or sweetened beverage powder for sale in |
|
|
this state to the ultimate consumer shall pay the tax imposed by |
|
|
this chapter. |
|
|
(b) On or before the 25th day of each month, the person |
|
|
responsible for paying the tax shall send to the comptroller the |
|
|
amount of tax due under this chapter for the preceding month. |
|
|
Sec. 164.057. REPORTS. On or before the 25th day of each |
|
|
month, the person responsible for paying the tax under this chapter |
|
|
shall file with the comptroller a report stating: |
|
|
(1) the volume of sweetened beverages, sweetened |
|
|
beverage powder, and sweetened beverage syrup sold in this state to |
|
|
retailers; |
|
|
(2) the volume of sweetened beverages, sweetened |
|
|
beverage powder, and sweetened beverage syrup imported into this |
|
|
state for sale in this state to the ultimate consumer; and |
|
|
(3) any other information required by the comptroller. |
|
|
Sec. 164.058. RECORDS. (a) The person responsible for |
|
|
paying the tax under this chapter shall keep a complete record of: |
|
|
(1) the volume of sweetened beverages, sweetened |
|
|
beverage powder, and sweetened beverage syrup sold in this state to |
|
|
retailers; |
|
|
(2) the volume of sweetened beverages, sweetened |
|
|
beverage powder, and sweetened beverage syrup imported into this |
|
|
state for sale in this state to the ultimate consumer; and |
|
|
(3) any other information required by the comptroller. |
|
|
(b) A record required by this section must be kept or |
|
|
maintained for at least two years after the date the record is made. |
|
|
SUBCHAPTER C. SALES PERMITS |
|
|
Sec. 164.101. SALES PERMITS. (a) The comptroller shall |
|
|
issue to an applicant who qualifies under Section 164.102 a |
|
|
separate permit for each place of business in this state. |
|
|
(b) The holder of a permit shall display it conspicuously in |
|
|
the place of business to which it applies. |
|
|
(c) A permit is valid only for the person and the place of |
|
|
business to which it applies and is non-assignable. |
|
|
(d) A permit issued under this chapter must be renewed |
|
|
annually. |
|
|
Sec. 164.102. APPLICATION FOR PERMIT. (a) A person |
|
|
desiring to sell to a retailer, or import for sale in this state to |
|
|
the ultimate consumer, sweetened beverages, sweetened beverage |
|
|
powder, or sweetened beverage syrup shall file with the comptroller |
|
|
an application for a permit for each place of business. |
|
|
(b) The application must: |
|
|
(1) be on a form prescribed by the comptroller; |
|
|
(2) state the name under which the applicant transacts |
|
|
or intends to transact business; |
|
|
(3) give the address of the place of business to which |
|
|
the permit is to apply; |
|
|
(4) contain any other information required by the |
|
|
comptroller; and |
|
|
(5) be signed by the applicant or a person authorized |
|
|
to act on behalf of the applicant. |
|
|
SUBCHAPTER D. PENALTIES |
|
|
Sec. 164.151. INTEREST ON DELINQUENT TAX. A tax imposed by |
|
|
this chapter that is delinquent draws interest as provided by |
|
|
Section 111.060. |
|
|
Sec. 164.152. PENALTY. (a) A person who is responsible for |
|
|
paying the tax imposed by this chapter and who fails to file a |
|
|
report as required by this chapter or does not pay the tax when it is |
|
|
due forfeits to the state a penalty of 25 percent of the amount of |
|
|
the delinquent tax. |
|
|
(b) The minimum penalty under this section is $1. |
|
|
SUBCHAPTER E. DISPOSITION OF REVENUE |
|
|
Sec. 164.201. DISPOSITION OF REVENUE. The revenue from the |
|
|
tax imposed by this chapter shall be deposited to the credit of the |
|
|
general revenue fund. |
|
|
SECTION 2. Not later than December 1, 2015, the comptroller |
|
|
of public accounts shall adopt rules necessary for the |
|
|
implementation and administration of Chapter 164, Tax Code, as |
|
|
added by this Act. |
|
|
SECTION 3. Chapter 164, Tax Code, as added by this Act, |
|
|
applies to a sweetened beverage, sweetened beverage powder, or |
|
|
sweetened beverage syrup sold in this state or imported into this |
|
|
state on or after January 1, 2016. A sweetened beverage, sweetened |
|
|
beverage powder, or sweetened beverage syrup sold or imported |
|
|
before January 1, 2016, is governed by the law in effect when the |
|
|
sweetened beverage, sweetened beverage powder, or sweetened |
|
|
beverage syrup was sold or imported, and that law is continued in |
|
|
effect for that purpose. |
|
|
SECTION 4. (a) Except as provided by Subsection (b) of this |
|
|
section, this Act takes effect January 1, 2016. |
|
|
(b) Section 2 of this Act takes effect September 1, 2015. |