TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 3. TAX ADMINISTRATION

SUBCHAPTER G. CIGARETTE TAX

34 TAC §3.102

The Comptroller of Public Accounts adopts amendment to §3.102, concerning applications, definitions, permits, and reports, without changes to the proposed text as published in the June 27, 2025, issue of the Texas Register (50 TexReg 3721). The rule will not be republished.

The comptroller amends this section to address age requirements for obtaining a cigarette permit.

The comptroller amends subsection (f), to add that the comptroller will not issue a permit to an applicant that is under the age of 21.

The comptroller did not receive any comments regarding adoption of the amendment.

The amendment 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 amendment implements Tax Code, Chapter 154 (Cigarette Tax) and Health and Safety Code, Chapter 161 (Public Health Provisions).

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 August 4, 2025.

TRD-202502752

Jenny Burleson

Director, Tax Policy

Comptroller of Public Accounts

Effective date: August 24, 2025

Proposal publication date: June 27, 2025

For further information, please call: (512) 475-2220


SUBCHAPTER CC. SEXUALLY ORIENTED BUSINESS FEE

34 TAC §3.722

The Comptroller of Public Accounts adopts amendments to §3.722, concerning the sexually oriented business fee, without changes to the proposed text as published in the July 4, 2025, issue of the Texas Register (50 TexReg 3856). The rule will not be republished.

The comptroller amends this section to implement the decision in Tex. Entm't Ass'n, Inc. v. Hegar, 10 F.4th 495 (5th Cir. 2021) and to implement House Bill 3345, 88th Legislature, 2023.

The comptroller amends the definition of clothing in subsection (a)(1), to remove the provision that was deemed unconstitutional in the Texas Entertainment Association, Inc. case.

The comptroller amends subsection (d)(1) and (2), and increases the fee imposed on a sexually oriented business to $10 for each entry by each customer admitted to the business, as provided in House Bill 3345.

The comptroller also replaces the term "return" with "report" for consistent usage throughout the section.

The comptroller did not receive any comments regarding adoption of the amendment.

The comptroller adopts the amendments 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 amendments to this section implement Business and Commerce Code, §102.051 (Definitions).

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 August 8, 2025.

TRD-202502827

Jenny Burleson

Director, Tax Policy Division

Comptroller of Public Accounts

Effective date: August 28, 2025

Proposal publication date: July 4, 2025

For further information, please call: (512) 475-2220


SUBCHAPTER JJ. CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS REGULATION

34 TAC §3.1207

The Comptroller of Public Accounts adopts amendment to §3.1207, concerning e-cigarette retailer permits, without changes to the proposed text as published in the June 27, 2025, issue of the Texas Register (50 TexReg 3727). The rule will not be republished.

The comptroller amends this section to address age requirements for obtaining an e-cigarette permit.

The comptroller amends subsection (f), to add that the comptroller will not issue a permit to an applicant that is under the age of 21.

The comptroller did not receive any comments regarding adoption of the amendment.

The amendment 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 amendment implements Health and Safety Code, Chapter 147 (E-Cigarette Retailer Permit) and Health and Safety Code, Chapter 161 (Public Health Provisions).

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 August 4, 2025.

TRD-202502754

Jenny Burleson

Director, Tax Policy

Comptroller of Public Accounts

Effective date: August 24, 2025

Proposal publication date: June 27, 2025

For further information, please call: (512) 475-2220