PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3. TAX ADMINISTRATION
SUBCHAPTER JJ. CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS REGULATION
The Comptroller of Public Accounts adopts new §3.1207, concerning e-cigarette retailer permits, without changes to the proposed text as published in the February 23, 2024, issue of the Texas Register (49 TexReg 985). The rule will not be republished. The comptroller creates this rule to implement portions of Senate Bill 248, 87th Legislature, 2021, relating to regulating permits for the sale or delivery of e-cigarettes.
This section provides guidance on the permitting of the retail sale of e-cigarettes as provided in new Health and Safety Code, Chapter 147 (E-cigarette Retailer Permits).
In subsection (a), the comptroller defines commercial business location, e-cigarette retailer, permit holder, and place of business as found in Health and Safety Code, §147.0001 (Definitions); e-cigarette as found in Health and Safety Code, §161.081 (Definitions); and marketplace, marketplace provider and marketplace seller as found in Tax Code, §151.0242 (Marketplace Providers and Marketplace Sellers).
In subsection (b), the comptroller states that this section does not apply to a product that is approved for use in the treatment of nicotine or smoking addiction and is labeled with a "Drug Facts" panel.
The comptroller provides the permitting requirements and application process in subsection (c), effective January 1, 2022, for a person engaging in business as an e-cigarette retailer in Texas.
In subsection (d), the comptroller provides information on permit periods and applicable permit fees for new permits and renewals.
The comptroller provides payment requirements for obtaining an e-cigarette retailer permit in subsection (e).
In subsection (f), the comptroller includes qualification guidelines regarding the issuance of an e-cigarette retailer permit.
The comptroller lists requirements for the display of an e-cigarette retailer permit in subsection (g).
In subsection (h), the comptroller provides the conditions under which the comptroller may deny an application for an e-cigarette retailer permit.
The comptroller provides information related to the summary suspension of an e-cigarette retailer permit in subsection (i).
In subsection (j), the comptroller provides information relating to the final revocation or suspension of an e-cigarette retailer permit.
The comptroller addresses administrative penalties in subsection (k) for a person who violates provisions of this section.
In subsection (l), the comptroller provides the applicable offenses that may be committed by a person who engages in e-cigarette retailer related business without an e-cigarette retailer permit.
The comptroller did not receive any comments regarding adoption of the amendment.
The new section is adopted under Tax Code, §111.002 (Comptroller's Rules; Compliance; Forfeiture) and §111.0022 (Application to Other Laws Administered by Comptroller) which provide the comptroller with authority to prescribe, adopt, and enforce rules relating to the administration and enforcement provisions of Tax Code, Title 2, and taxes, fees, or other charges which the comptroller administers under other law.
The new section implements Health and Safety Code, Chapter 147 (E-cigarette Retailer Permits).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on April 2, 2024.
TRD-202401367
Jenny Burleson
Director, Tax Policy Division
Comptroller of Public Accounts
Effective date: April 22, 2024
Proposal publication date: February 23, 2024
For further information, please call: (512) 475-2220