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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration and collection of sales and use |
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taxes applicable to sales involving marketplace providers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.008(b), Tax Code, is amended to read |
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as follows: |
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(b) "Seller" and "retailer" include: |
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(1) a person in the business of making sales at auction |
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of tangible personal property owned by the person or by another; |
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(2) a person who makes more than two sales of taxable |
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items during a 12-month period, including sales made in the |
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capacity of an assignee for the benefit of creditors or receiver or |
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trustee in bankruptcy; |
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(3) a person regarded by the comptroller as a seller or |
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retailer under Section 151.024; |
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(4) a hotel, motel, or owner or lessor of an office or |
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residential building or development that contracts and pays for |
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telecommunications services for resale to guests or tenants; |
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(5) a person who engages in regular or systematic |
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solicitation of sales of taxable items in this state by the |
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distribution of catalogs, periodicals, advertising flyers, or |
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other advertising, by means of print, radio, or television media, |
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or by mail, telegraphy, telephone, computer data base, cable, |
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optic, microwave, or other communication system for the purpose of |
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effecting sales of taxable items; [and] |
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(6) a person who, under an agreement with another |
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person, is: |
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(A) entrusted with possession of tangible |
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personal property with respect to which the other person has title |
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or another ownership interest; and |
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(B) authorized to sell, lease, or rent the |
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property without additional action by the person having title to or |
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another ownership interest in the property; and |
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(7) a person who is a marketplace provider under |
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Section 151.0242. |
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SECTION 2. Subchapter B, Chapter 151, Tax Code, is amended |
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by adding Section 151.0242 to read as follows: |
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Sec. 151.0242. MARKETPLACE PROVIDERS AND MARKETPLACE |
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SELLERS. (a) In this section: |
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(1) "Marketplace" means a physical or electronic |
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medium through which persons other than the owner or operator of the |
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medium make sales of taxable items. The term includes a store, |
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Internet website, software application, or catalog. |
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(2) "Marketplace provider" means a person who owns or |
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operates a marketplace and directly or indirectly processes sales |
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or payments for marketplace sellers. |
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(3) "Marketplace seller" means a seller, other than |
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the marketplace provider, who makes a sale of a taxable item through |
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a marketplace. |
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(b) Except as otherwise provided by this section, a |
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marketplace provider has the rights and duties of a seller or |
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retailer under this chapter with respect to sales made through the |
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marketplace. |
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(c) A marketplace provider shall: |
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(1) certify to each marketplace seller that the |
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marketplace provider assumes the rights and duties of a seller or |
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retailer under this chapter with respect to sales made by the |
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marketplace seller through the marketplace; |
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(2) collect in the manner provided by Subchapters C |
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and D the taxes imposed by this chapter on sales of taxable items |
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made through the marketplace; and |
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(3) report and remit under Subchapter I the taxes |
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imposed by this chapter on all sales made through the marketplace. |
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(d) A marketplace seller who in good faith accepts a |
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marketplace provider's certification under Subsection (c)(1) shall |
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exclude sales made through the marketplace from the marketplace |
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seller's report under Subchapter I, notwithstanding Section |
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151.406. |
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(e) A marketplace seller shall retain records for all |
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marketplace sales as required by Section 151.025. |
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(f) A marketplace seller shall furnish to the marketplace |
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provider information that is required to correctly collect and |
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remit taxes imposed by this chapter. The information may include a |
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certification of taxability that an item being sold is a taxable |
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item, is not a taxable item, or is exempt from taxation. |
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(g) Except as provided by Subsection (h), a marketplace |
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provider is not liable for failure to collect and remit the correct |
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amount of taxes imposed by this chapter if the marketplace provider |
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demonstrates that the failure resulted from the marketplace |
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provider's good faith reliance on incorrect or insufficient |
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information provided by the marketplace seller. The marketplace |
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seller is liable for a deficiency resulting from incorrect or |
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insufficient information provided by the marketplace seller. |
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(h) A marketplace provider and marketplace seller that are |
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affiliates or associates, as defined by Section 1.002, Business |
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Organizations Code, are jointly and severally liable for a |
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deficiency resulting from a sale made by the marketplace seller |
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through the marketplace. |
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(i) This section does not affect the tax liability of a |
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purchaser under Section 151.052 or 151.102. |
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(j) A court may not certify an action brought against a |
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marketplace provider concerning this section as a class action. |
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(k) The comptroller may adopt rules and forms to implement |
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this section and by rule except certain marketplace providers from |
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some or all of the requirements of this section. |
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SECTION 3. Section 321.203, Tax Code, is amended by adding |
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Subsection (e-1) to read as follows: |
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(e-1) Notwithstanding any other provision of this section, |
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a sale of a taxable item made by a marketplace seller through a |
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marketplace as provided by Section 151.0242 is consummated at the |
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location in this state to which the item is shipped or delivered or |
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at which possession is taken by the purchaser. |
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SECTION 4. Section 323.203, Tax Code, is amended by adding |
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Subsection (e-1) to read as follows: |
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(e-1) Notwithstanding any other provision of this section, |
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a sale of a taxable item made by a marketplace seller through a |
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marketplace as provided by Section 151.0242 is consummated at the |
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location in this state to which the item is shipped or delivered or |
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at which possession is taken by the purchaser. |
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SECTION 5. The changes in law made by this Act do not affect |
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tax liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. |
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SECTION 6. This Act takes effect October 1, 2019. |
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