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A BILL TO BE ENTITLED
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AN ACT
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relating to surcharges imposed for the use of a credit card and to |
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certain reimbursements and discounts allowed for the collection and |
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payment of sales and use taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 604A.003, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 604A.003. CIVIL PENALTY. (a) A person who knowingly |
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violates Section 604A.002 [or 604A.0021] is liable to the state for |
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a civil penalty in an amount not to exceed $500 for each violation. |
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The attorney general or the prosecuting attorney in the county in |
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which the violation occurs may bring: |
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(1) a suit to recover the civil penalty imposed under |
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this section; and |
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(2) an action in the name of the state to restrain or |
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enjoin a person from violating this chapter. |
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(b) Before bringing the action, the attorney general or |
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prosecuting attorney shall give the person notice of the person's |
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noncompliance and liability for a civil penalty. The notice must: |
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(1) contain guidance to assist the person in complying |
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with this chapter; |
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(2) advise the person of the prohibitions under |
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Section [Sections] 604A.002 [and 604A.0021]; and |
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(3) state that the person may be liable for a civil |
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penalty for a subsequent violation of Section 604A.002 [or |
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604A.0021]. |
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(b-1) If the person complies with Section [Sections] |
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604A.002 [and 604A.0021] not later than the 30th day after the date |
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of the notice under Subsection (b), the violation is cured and the |
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person is not liable for the civil penalty. A person who has |
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previously received notice of noncompliance under Subsection (b) is |
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not entitled to notice of or the opportunity to cure a subsequent |
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violation of Section 604A.002 [or 604A.0021]. |
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(c) The attorney general or the prosecuting attorney, as |
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appropriate, is entitled to recover reasonable expenses incurred in |
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obtaining injunctive relief, civil penalties, or both, under this |
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section, including reasonable attorney's fees, court costs, and |
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investigatory costs. |
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SECTION 2. (a) Effective October 1, 2021, Section 151.423, |
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Tax Code, is amended to read as follows: |
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Sec. 151.423. REIMBURSEMENT TO TAXPAYER FOR TAX |
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COLLECTIONS. (a) In this section: |
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(1) "Credit card" means a card or equivalent device |
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used to make purchases based on the cardholder's promise to pay the |
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issuer of the card for the amount of the purchase and any associated |
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interest and fees. |
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(2) "Credit card sale" means a sale of a taxable item |
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paid for by the purchaser using a credit card. |
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(b) As reimbursement for the cost of collecting the taxes |
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imposed by this chapter, a [A] taxpayer may on a timely return |
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deduct and withhold: |
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(1) one-half of one percent of the amount of taxes due |
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from the taxpayer, other than taxes imposed on credit card sales; |
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and |
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(2) 2.5 percent of the amount of taxes imposed on |
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credit card sales due from the taxpayer [on a timely return as |
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reimbursement for the cost of collecting the taxes imposed by this |
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chapter]. |
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(c) The comptroller shall provide a card with each form |
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distributed for the collection of taxes under this chapter. The |
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card may be inserted by the taxpayer with the tax payment to provide |
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for contribution of all or part of the reimbursement provided by |
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this section for use as grants under Subchapter M, Chapter 56, |
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Education Code. If the taxpayer chooses to contribute the |
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reimbursement for the grants, the taxpayer shall include the amount |
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of the reimbursement contribution with the tax payment. The |
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comptroller shall transfer money contributed under this section for |
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grants under Subchapter M, Chapter 56, Education Code, to the |
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appropriate fund. |
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(b) Effective October 1, 2021, Section 151.424, Tax Code, is |
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amended by amending Subsection (a) and adding Subsection (a-1) to |
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read as follows: |
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(a) A taxpayer who prepays the taxpayer's tax liability of |
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taxes described by Section 151.423(b)(1) on the basis of a |
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reasonable estimate of the tax liability for a quarter in which a |
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prepayment is made or for a month in which a prepayment is made may |
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deduct and withhold 1.25 percent of the amount of the prepayment in |
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addition to the amount permitted to be deducted and withheld under |
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that section [Section 151.423 of this code]. A reasonable estimate |
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of the tax liability must be at least 90 percent of that [the] tax |
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ultimately due or the amount of that tax paid in the same quarter, |
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or month, if a monthly prepayer, in the last preceding year. Failure |
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to prepay a reasonable estimate of the tax will result in the loss |
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of the entire prepayment discount. |
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(a-1) A taxpayer may not deduct or withhold any amount under |
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this section of a prepayment of the taxpayer's tax liability for |
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taxes described by Section 151.423(b)(2). |
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(c) Section 151.423, Tax Code, as amended by this section, |
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applies to a tax report due on or after October 1, 2021. A tax |
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report due before October 1, 2021, is governed by the law in effect |
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on the date the tax report was due, and the former law is continued |
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in effect for that purpose. |
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(d) Section 151.424, Tax Code, as amended by this section, |
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applies to a prepayment of tax liability made on or after October 1, |
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2021. A prepayment of tax liability made before October 1, 2021, is |
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governed by the law in effect on the date the prepayment was made, |
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and the former law is continued in effect for that purpose. |
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SECTION 3. Section 604A.0021, Business & Commerce Code, is |
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repealed. |
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SECTION 4. This Act takes effect September 1, 2021. |