Texas Tax Code Title 2, Chapter 155 - Cigars And Tobacco Products Tax

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 155.001 - Definitions
  In this chapter: (1) "Bonded agent" means a person in this state who is an agent of a person outside this state and receives cigars...

SUBCHAPTER B IMPOSITION AND RATE OF TAX

• Texas Section 155.002 - Storage
  (a) The commercial business location where tobacco products are stored or kept cannot be a residence or a unit in a public storage facility. (b)...
• Texas Section 155.021 - Tax Imposed On Cigars
  (a) A tax is imposed and becomes due and payable when a permit holder receives cigars for the purpose of making a first sale in...
• Texas Section 155.0211 - Tax Imposed On Tobacco Products Other Than Cigars
  (a) A tax is imposed and becomes due and payable when a permit holder receives tobacco products other than cigars, for the purpose of making...
• Texas Section 155.022 - First Sale Of Tobacco Products
  A person who receives or possesses tobacco products on which a tax of more than $50 would be due if the receipt or possession were...
• Texas Section 155.023 - Payment Of Tax
  (a) A distributor shall pay the tax on tobacco products received for the purpose of making a first sale at the time the distributor files...
• Texas Section 155.024 - Exception For Personal Use
  A person who personally transports cigars or tobacco products in quantities or amounts that would ordinarily retail at 25 cents or less is not required...
• Texas Section 155.026 - Penalty For Failure To Pay Tax
  (a) A distributor who fails to timely pay the tax when due shall pay five percent of the amount of tax then due as a...

SUBCHAPTER C PERMITS

• Texas Section 155.027 - Venue
  Venue of a suit for collection of a penalty for late payment of taxes is in Travis County. Acts 1981, 67th Leg., p. 1669, ch....
• Texas Section 155.041 - Permits
  (a) A person may not engage in business as a distributor, wholesaler, bonded agent, manufacturer, importer, or retailer unless the person has applied for and...
• Texas Section 155.0415 - Sales: Permit Holders And Nonpermit Holders
  (a) Except for retail sales to consumers, tobacco products may only be sold or distributed by and between permit holders. (b) A person who is...
• Texas Section 155.045 - Combination Permit
  The comptroller may issue a combination permit for cigarettes and tobacco products under Section 154.102. A person who receives a combination permit is subject to...
• Texas Section 155.048 - Issuance Of Permits
  (a) The comptroller shall issue a permit to a distributor, wholesaler, bonded agent, manufacturer, importer, or retailer if the comptroller: (1) has received an application...
• Texas Section 155.0481 - Denial Of Permit
  The comptroller may reject an application and deny a permit if the comptroller finds, after notice and opportunity for hearing, any of the following: (1)...
• Texas Section 155.049 - Licensing Year; Fees
  (a) A permit required by this chapter expires on the last day of February of each year, except the retailer's permit required by Section 155.041...
• Texas Section 155.050 - Payment For Permits
  (a) An applicant for a permit required by Section 155.041 shall send the required fee with the application. (b) The payment must be in cash...
• Texas Section 155.053 - Display Of Permit
  (a) Each permit holder shall keep the permit on public display at the place of business for which the permit was issued. (b) Each permit...
• Texas Section 155.058 - Revenue
  (a) Except as provided by Subsection (b), revenue from the sale of permits to distributors, wholesalers, and bonded agents is allocated in the same manner...
• Texas Section 155.059 - Final Suspension Or Revocation Of Permit
  (a) The comptroller may revoke or suspend a person's permit if the comptroller finds, after notice and hearing as provided by this section, that the...
• Texas Section 155.0591 - Summary Suspension Of A Permit
  (a) The comptroller may suspend a person's permit without notice or a hearing for the person's failure to comply with this chapter or a rule...
• Texas Section 155.0592 - Disciplinary Action For Certain Violations
  (a) A retailer is subject to disciplinary action as provided by this section if: (1) an agent or employee of the retailer commits an offense...
• Texas Section 155.0593 - Actions Of Employee
  (a) For purposes of Subchapter H, Chapter 161, Health and Safety Code, and the provisions of this code relating to the sale or delivery of...

SUBCHAPTER D RECORDS AND REPORTS

• Texas Section 155.0595 - Hearings
  Unless otherwise provided by this chapter, the comptroller shall conduct all hearings required by this chapter in accordance with Chapter 2001, Government Code. The comptroller...
• Texas Section 155.101 - Record Of Purchase Or Receipt
  Each distributor, wholesaler, bonded agent, and export warehouse shall keep records at each place of business of all tobacco products purchased or received. Each retailer...
• Texas Section 155.102 - Report Of Sale Or Use
  (a) Each distributor and wholesaler shall keep at each place of business in this state records of each sale, distribution, exchange, or use of tobacco...
• Texas Section 155.103 - Manufacturer's Records And Reports
  (a) A manufacturer who sells tobacco products to a permit holder in this state shall keep records showing: (1) the number and kind of tobacco...
• Texas Section 155.104 - Manufacturer's Representative's Records
  A manufacturer's representative shall keep the same records that are required of a wholesaler. The manufacturer's representative shall deliver a duplicate of the invoice required...
• Texas Section 155.105 - Reports By Wholesalers And Distributors Of Cigars And Tobacco Products
  (a) The comptroller may, when considered necessary by the comptroller for the administration of a tax under this chapter, require each wholesaler or distributor of...
• Texas Section 155.107 - Common Carrier Records
  (a) Each common carrier shall keep records of tobacco products transported in this state. (b) The comptroller and the attorney general are entitled to access...
• Texas Section 155.108 - Bonded Agent's Records
  (a) Each bonded agent shall keep, at each place of business in this state, records of all tobacco products received, distributed, and delivered. (b) The...
• Texas Section 155.110 - Availability Of Records
  (a) Except as provided by Section 111.0041, each permit holder shall keep records available for inspection and copying by the comptroller and the attorney general...
• Texas Section 155.111 - Distributor's Report
  (a) A distributor shall file with the comptroller on or before the last day of each month, a report for the preceding month. (b) The...

SUBCHAPTER E ENFORCEMENT OF TAX

• Texas Section 155.112 - Failure To Produce Records
  (a) A person's failure to produce the records required by this subchapter or a person's inability to provide other proof of tax payment, on demand...
• Texas Section 155.141 - Donations
  The comptroller may accept gifts, grants, and donations for the administration and enforcement of this chapter. Added by Acts 1989, 71st Leg., ch. 240, Sec....
• Texas Section 155.143 - Seizure
  (a) The comptroller with or without process may seize: (1) tobacco products taxed under this chapter that are possessed or controlled by a person for...
• Texas Section 155.144 - Comptroller's Report
  (a) If the comptroller seizes property under Section 155.143, the comptroller shall immediately make a written report showing: (1) the name of the person making...
• Texas Section 155.1445 - Sale Of Seized Tobacco Products
  (a) Tobacco products are perishable items. (b) If the seized tobacco products are in a salable condition, the comptroller may sell the tobacco products, return...
• Texas Section 155.145 - Forfeiture Proceeding
  (a) The owner of property seized under this chapter is entitled to written notice of the seizure. (b) The comptroller shall give the notice by...
• Texas Section 155.1451 - Disposition Of Forfeited Property
  (a) The comptroller may sell property forfeited to the state at public or private sale in any commercially reasonable manner or retain the property for...
• Texas Section 155.146 - Photographic Evidence In Cases Involving Seized Tobacco Products
  (a) The comptroller may photograph tobacco products seized under Section 155.143 before their sale under this subchapter. (b) In a proceeding arising out of this...
• Texas Section 155.150 - Seizure Or Sale No Defense
  The seizure, forfeiture, and sale of tobacco products or property under this chapter, with or without court action, is not a defense to criminal prosecution...
• Texas Section 155.151 - Waiver Permitted
  (a) The comptroller may waive a forfeiture proceeding for property seized under Section 155.143 of this code if the owner or possessor of the property:...
• Texas Section 155.152 - Payment To Treasury
  The comptroller shall deposit all taxes collected under this chapter, after payment of costs, in the treasury to be allocated as provided by Subchapter H....
• Texas Section 155.153 - Preferred State Tax Lien
  (a) All taxes, fines, interest, penalties, and costs due under this chapter are secured by a preferred lien in favor of the state, first and...
• Texas Section 155.154 - Donations
  The comptroller may accept gifts, grants, and donations for the administration and enforcement of this chapter. Added by Acts 1991, 72nd Leg., ch. 409, Sec....

SUBCHAPTER F ADMINISTRATION BY COMPTROLLER

• Texas Section 155.155 - Reciprocal Agreements
  (a) The comptroller may enter into a reciprocal agreement with a tax official of another state or an official of the United States allowing the...
• Texas Section 155.181 - Compliance Investigation And Recovery Of Costs
  (a) If the comptroller has reason to believe that a person has failed to pay a tax or penalty in the proper manner when due...
• Texas Section 155.182 - Payment Of Double Amount
  (a) If the comptroller finds that a person has sold tobacco products without the tax having been paid, the comptroller may require the person to...
• Texas Section 155.183 - Inspection
  (a) To determine the tax liability of a person dealing in tobacco products or compliance by the person with this chapter, the comptroller may: (1)...
• Texas Section 155.184 - Credit For Tax Paid
  (a) The comptroller may adopt rules providing for a credit or refund for tax paid on tobacco products if the tobacco products have become unfit...
• Texas Section 155.185 - Deficiency Determination, Penalties, And Interest
  (a) If the comptroller has reasonable cause to believe that a tax report or the amount of tax is inaccurate, the comptroller may compute and...

SUBCHAPTER G PENALTIES

• Texas Section 155.186 - Redetermination
  (a) A person who receives notice of a deficiency determination may submit a written request to the comptroller for redetermination. If the person desires a...
• Texas Section 155.201 - Penalties
  (a) A person violates this chapter if the person: (1) is a distributor, wholesaler, manufacturer, importer, bonded agent, manufacturer's representative, or retailer and fails to...
• Texas Section 155.202 - Nonpayment Of Tax
  A person commits an offense if the person, without the tax being paid: (1) receives or possesses in this state tobacco products for the purpose...
• Texas Section 155.203 - Possession: Tax Due $50 Or Less
  Sec. 155.203. POSSESSION: TAX DUE $50 OR LESS. (a) A person commits an offense if the person possesses, in violation of this chapter, tobacco products...
• Texas Section 155.204 - Concealment Of Violation
  A person commits an offense if the person uses any artful device or deceptive practice to conceal a violation of this chapter. Acts 1981, 67th...
• Texas Section 155.205 - Misleading The Comptroller
  A person commits an offense if the person misleads the comptroller in the enforcement of this chapter. Acts 1981, 67th Leg., p. 1683, ch. 389,...
• Texas Section 155.206 - Refusing To Surrender Tobacco Products
  A person commits an offense if the person refuses to surrender to the comptroller on demand tobacco products possessed in violation of this chapter. Acts...
• Texas Section 155.207 - Permits
  A person commits an offense if the person: (1) as a distributor, wholesaler, or retailer, receives or possesses tobacco products without having a valid permit;...
• Texas Section 155.2075 - Fingerprints
  The comptroller may refuse to grant a permit or may revoke or suspend a permit if the applicant or permit holder fails, on request, to...
• Texas Section 155.208 - Misdemeanor
  An offense under Sections 155.202-155.207 is a Class A misdemeanor. Acts 1981, 67th Leg., p. 1684, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended...
• Texas Section 155.209 - Transportation Of Tobacco Products
  A person commits an offense if the person: (1) knowingly transports tobacco products taxed under this chapter without the tax being paid; (2) wilfully refuses...
• Texas Section 155.210 - Inspection Of Premises
  A person commits an offense if the person refuses to permit a complete inspection by an authorized representative of the comptroller of any premises where...
• Texas Section 155.211 - Possession: Tax Due More Than $50
  Sec. 155.211. POSSESSION: TAX DUE MORE THAN $50. (a) A person commits an offense if the person possesses, in violation of this chapter, tobacco products...
• Texas Section 155.212 - Books And Records
  A person commits an offense if the person: (1) knowingly makes, delivers to, and files with the comptroller a false return or an incomplete return...
• Texas Section 155.213 - Felony
  An offense under Sections 155.209-155.212 is a felony of the third degree. Acts 1981, 67th Leg., p. 1684, ch. 389, Sec. 1, eff. Jan. 1,...
• Texas Section 155.214 - Overlap Of Penalties
  If an offense is punishable under Section 155.208 of this code and also under Section 155.213 of this code, the punishment prescribed by Section 155.213...

SUBCHAPTER H ALLOCATION OF TAX

• Texas Section 155.215 - Venue For Felony
  Venue of a prosecution for an offense punishable under Section 155.213 of this code is in Travis County or in the county where the offense...
• Texas Section 155.241 - Allocation Of Tax
  Revenue collected under this chapter shall be deposited to the credit of the general revenue fund. Acts 1981, 67th Leg., p. 1685, ch. 389, Sec....
• Texas Section 155.2415 - Allocation Of Certain Revenue To Property Tax Relief Fund And Certain Other Funds
  (a) Notwithstanding Section 155.241, the proceeds from the collection of taxes imposed by Section 155.0211 shall be allocated as follows: (1) the amount of the...

Last modified: September 28, 2016