HBA-LJP H.B. 2413 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2413
By: Ritter
Ways & Means
66/14/2001
Enrolled



BACKGROUND AND PURPOSE 

Under state law, a person who pays a tax for cigarettes or tobacco products
is required to securely affix a stamp to each individual package of
cigarettes to show payment of the tax and the comptroller of public
accounts is required to inspect and audit vendors to ensure that the taxes
are being collected.  If cigarette or tobacco products cannot be located
for taxation, then the comptroller is not able to tax the product and the
state may lose revenue.  House Bill 2413 limits the areas that cigarettes,
cigars, and tobacco products are stored for the purpose of inspection and
audits. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2413 amends the Tax Code to modify the definition of "commercial
business location" to be the entire premise that is occupied by a permit
applicant or a person required to hold a permit regarding the taxation of
cigarettes (Sec. 154.001). 

The bill provides that the definition of a "commercial business location"
regarding the taxation of cigars and tobacco products is the entire premise
that is occupied by a permit applicant or a person required to hold a
permit but does not include where cigar or tobacco products are stored or
kept in a residence or a unit in a public storage facility. 

The bill amends the definition of "common carrier" to mean a motor carrier
operating under certificate issued by the United States Department of
Transportation that transports cigars and tobacco products in which the
carrier has no ownership or other pecuniary interest (Sec. 155.001). 

The bill requires a permit holder to designate in the permit application
the permanent place of business the records of the cigarette and tobacco
products are kept, if the permit holder's place of business is a vending
machine (Secs. 154.209 and 155.110). 

EFFECTIVE DATE

September 1, 2001.