86R11652 GRM-D
 
  By: Goodwin H.B. No. 2849
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the imposition of a sales tax on ammunition, firearms,
  and firearms accessories to provide funding for a grant program for
  mental health services.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by
  adding Chapter 165 to read as follows:
  CHAPTER 165.  SALES TAX ON AMMUNITION, FIREARMS, AND FIREARM
  ACCESSORIES
         Sec. 165.0001.  DEFINITIONS. In this chapter:
               (1)  "Ammunition" has the meaning assigned by 18 U.S.C.
  Section 921(a)(17)(A).
               (2)  "Dealer" has the meaning assigned by 18 U.S.C.
  Section 921(a)(11).
               (3)  "Firearm" has the meaning assigned by 18 U.S.C.
  Section 921(a)(3).
               (4)  "Firearm accessory" means an item used in
  conjunction with or mounted on a firearm that is not essential to
  the basic function of a firearm, including a telescopic or laser
  sight, magazine, flash or sound suppressor, folding or aftermarket
  stock and grip, speedloader, ammunition carrier, or light for
  target illumination. 
         Sec. 165.0002.  AMMUNITION, FIREARMS, AND FIREARM
  ACCESSORIES TAX.  (a)  A tax is imposed on each sale by a dealer of
  ammunition, a firearm, or a firearm accessory. 
         (b)  The tax rate is one percent of the sale price of the
  ammunition, firearm, or firearm accessory.
         (c)  The tax imposed under this chapter is in addition to the
  tax imposed under Chapter 151.  The tax imposed by this chapter does
  not apply to a sale unless the tax imposed under Chapter 151 applies
  to the sale.
         Sec. 165.0003.  APPLICATION OF OTHER PROVISIONS. (a)  
  Except as provided by this chapter:
               (1)  the tax imposed by this chapter is administered,
  imposed, collected, and enforced in the same manner as the tax under
  Chapter 151 is administered, imposed, collected, and enforced; 
               (2)  the provisions of Chapter 151 applicable to the
  sales tax imposed under Subchapter C, Chapter 151, apply to the tax
  imposed by this chapter. 
         (b)  A change in the law relating to the taxation of the sale
  of ammunition, a firearm, or a firearm accessory under Chapter 151
  also applies to the tax imposed by this chapter.
         SECTION 2.  (a)  This section takes effect only if the Act of
  the 86th Legislature, Regular Session, 2019, relating to
  nonsubstantive additions to and corrections in enacted codes
  becomes law.
         (b)  Chapter 165, Tax Code, as added by this Act, is amended
  by adding Section 165.0004 to read as follows:
         Sec. 165.0004.  DISPOSITION AND USE OF PROCEEDS. The
  comptroller shall deposit the proceeds from taxes imposed under
  this chapter to the credit of a special account in the general
  revenue fund that may be appropriated only to the Health and Human
  Services Commission for the mental health services grant program
  established under Chapter 531.0991, Government Code.
         SECTION 3.  (a)  This section takes effect only if the Act of
  the 86th Legislature, Regular Session, 2019, relating to
  nonsubstantive additions to and corrections in enacted codes does
  not become law.
         (b)  Chapter 165, Tax Code, as added by this Act, is amended
  by adding Section 165.0004 to read as follows:
         Sec. 165.0004.  DISPOSITION AND USE OF PROCEEDS. The
  comptroller shall deposit the proceeds from taxes imposed under
  this chapter to the credit of a special account in the general
  revenue fund that may be appropriated only to the Health and Human
  Services Commission for the mental health services grant program
  established under Chapter 531.0999, Government Code, as added by
  Chapter 770 (H.B. 13), Acts of the 85th Legislature, Regular
  Session, 2017.
         SECTION 4.  This Act takes effect September 1, 2019.