88R13621 BEF-F
 
  By: Cain H.B. No. 5141
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to local sales and use tax administration.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 321.002(a)(3), Tax Code, is amended to
  read as follows:
               (3)(A)  "Place of business of the retailer" means an
  established outlet, office, or location operated by the retailer,
  or operated by the retailer's agent or employee, for the purpose of
  receiving orders, regardless of the method by which orders are
  transmitted or received, for taxable items and includes any
  location at which three or more orders are received by the retailer
  during a calendar year. A warehouse, storage yard, or
  manufacturing plant is not a "place of business of the retailer"
  unless at least three orders are received by the retailer during the
  calendar year at the warehouse, storage yard, or manufacturing
  plant.
                     (B)  An outlet, office, facility, or any location
  that contracts with a retail or commercial business to process for
  that business invoices, purchase orders, bills of lading, or other
  equivalent records onto which sales tax is added, including an
  office operated for the purpose of buying and selling taxable goods
  to be used or consumed by the retail or commercial business, is not
  a "place of business of the retailer" if the comptroller determines
  that the outlet, office, facility, or location functions or exists
  to avoid the tax legally due under this chapter or exists solely to
  rebate a portion of the tax imposed by this chapter to the
  contracting business. An outlet, office, facility, or location
  does not exist to avoid the tax legally due under this chapter or
  solely to rebate a portion of the tax imposed by this chapter if the
  outlet, office, facility, or location provides significant
  business services, beyond processing invoices, to the contracting
  business, including logistics management, purchasing, inventory
  control, or other vital business services.
                     (C)  Notwithstanding any other provision of this
  subdivision, a kiosk is not a "place of business of the retailer."
  In this subdivision, "kiosk" means a small stand-alone area or
  structure that:
                           (i)  is used solely to display merchandise
  or to submit orders for taxable items from a data entry device, or
  both;
                           (ii)  is located entirely within a location
  that is a place of business of another retailer, such as a
  department store or shopping mall; and
                           (iii)  at which taxable items are not
  available for immediate delivery to a customer.
         SECTION 2.  Section 321.203(b), Tax Code, is amended to read
  as follows:
         (b)  If a retailer has only one place of business in this
  state, all of the retailer's retail sales of taxable items,
  regardless of the method by which orders for the taxable items are
  transmitted or received, are consummated at that place of business
  except as provided by Subsection (e).
         SECTION 3.  Section 323.203(b), Tax Code, is amended to read
  as follows:
         (b)  If a retailer has only one place of business in this
  state, all of the retailer's retail sales of taxable items,
  regardless of the method by which orders for the taxable items are
  transmitted or received, are consummated at that place of business
  except as provided by Subsection (e).
         SECTION 4.  The changes in law made by this Act do not affect
  tax liability accruing before the effective date of this Act. That
  liability continues in effect as if this Act had not been enacted,
  and the former law is continued in effect for the collection of
  taxes due and for civil and criminal enforcement of the liability
  for those taxes.
         SECTION 5.  This Act takes effect January 1, 2024.