TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 3. TAX ADMINISTRATION

SUBCHAPTER F. MOTOR VEHICLE SALES TAX

34 TAC §3.82

The Comptroller of Public Accounts adopts amendments to §3.82, concerning exemption for churches or religious societies, without changes to the proposed text as published in the November 15, 2019, issue of the Texas Register (44 TexReg 6996). The rules will not be republished.

The amendments implement the changes made by House Bill 2338, 86th Legislature, 2019, to Tax Code, §152.001(12) (Definitions).

The comptroller amends subsection (a) to address the exemption provided by Tax Code, §152.088 (Motor Vehicle Used for Religious Purposes). The comptroller amends the existing language to state the general rule that the taxes imposed by Tax Code, Chapter 152 do not apply to the sale or use of, or the receipts from the rental of, a motor vehicle used for religious purposes. The comptroller inserts the heading "Exemption from Motor Vehicle Sales Tax," and adds new paragraphs (1) - (4) addressing sales tax, use tax, and gross rental receipts tax, respectively.

The comptroller redesignates the remainder of current subsection (a) as new subsection (b), defining the term "motor vehicle used for religious purposes." The comptroller modifies the existing language to add two paragraphs. In paragraph (1), the comptroller revises the requirement that a vehicle be used primarily by a church or religious society. The amendment in paragraph (2) implements Tax Code, §152.001(12)(A) and (B), as revised by House Bill 2338.

The comptroller reletters subsequent subsections accordingly.

The comptroller amends relettered subsection (d) to use the term "motor vehicle" in place of "vehicle" for consistency with other sections of this title.

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

This amendment is adopted under Tax Code, §111.002 (Comptroller's Rules; Compliance; Forfeiture), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

This amendment implements Tax Code, §152.001 (Definitions) and §152.088 (Motor Vehicles Used for Religious Purposes).

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 December 18, 2019.

TRD-201904926

William Hamner

Special Counsel for Tax Administration

Comptroller of Public Accounts

Effective date: January 7, 2020

Proposal publication date: November 15, 2019

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


SUBCHAPTER O. STATE AND LOCAL SALES AND USE TAXES

34 TAC §3.280

The Comptroller of Public Accounts adopts an amendment to §3.280, concerning aircraft, without changes to the proposed text as published in the November 15, 2019, issue of the Texas Register (44 TexReg 6997). The rule will not be republished.

The comptroller amends the section to reflect the changes in Tax Code, §151.328 (Aircraft) made by Senate Bill 1214, 86th Legislature, 2019, effective September 1, 2019.

Subsection (e)(5)(C) is amended to remove the 30 mile limitation for travel to and from a location to perform specified agricultural services from the determination of whether an aircraft is exclusively used for agricultural purposes.

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

The amendments are adopted under Tax Code, §111.002 (Comptroller's Rules, Compliance, Forfeiture), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

The amendment implements Tax Code, §151.328, (Aircraft).

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 December 18, 2019.

TRD-201904927

William Hamner

Special Counsel for Tax Administration

Comptroller of Public Accounts

Effective date: January 7, 2020

Proposal publication date: November 15, 2019

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


34 TAC §3.320

The Comptroller of Public Accounts adopts amendments to §3.320, concerning the Texas emissions reduction plan surcharge; off-road, heavy-duty diesel equipment, without changes to the proposed text as published in the November 15, 2019, issue of the Texas Register (44 TexReg 7003). The rules will not be republished.

The comptroller amends the section to reflect the changes in Tax Code, §151.0515 (Texas Emissions Reduction Plan Surcharge) made by House Bill 3745, 86th Legislature, 2019.

The comptroller amends subsection (c) to update the title of §3.286.

New subsection (f) is added to include an expiration date to the surcharge. The surcharge expires on the last day of the fiscal biennium during which the Texas Commission on Environmental Quality publishes in the Texas Register the notice required by Health and Safety Code, §382.037 (Notice in Texas Register Regarding National Ambient Air Quality Standards for Ozone).

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

This amendment is adopted under Tax Code, §111.002 (Comptroller's Rules, Compliance, Forfeiture), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

The amendment implements Tax Code, §151.0515 (Texas Emissions Reduction Plan Surcharge).

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 December 18, 2019.

TRD-201904928

William Hamner

Special Counsel for Tax Administration

Comptroller of Public Accounts

Effective date: January 7, 2020

Proposal publication date: November 15, 2019

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


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

34 TAC §3.1202

The Comptroller of Public Accounts adopts amendments to §3.1202, concerning warning notice signs, without changes to the proposed text as published in the November 15, 2019, issue of the Texas Register (44 TexReg 7005). The rules will not be republished.

The amendments implement Senate Bill 21, 86th Legislature, 2019, effective September 1, 2019. The bill amends Health and Safety Code, §161.084 (Warning Notice) to update and add language to be included in the warning notice sign.

The comptroller amends subsection (d)(1)(A) to reflect statutory language to be included in the warning notice sign.

The comptroller adds new subparagraph (B) to include the temporary statutory language concerning persons born prior to September 1, 2001, to be included in the warning notice sign. The subsequent subparagraph is re-lettered.

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 the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2, and taxes, fees, or other charges that the comptroller administers under other law.

The amendments implement Health and Safety Code, §161.084 (Warning Notice).

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 December 18, 2019.

TRD-201904925

William Hamner

Special Counsel for Tax Administration

Comptroller of Public Accounts

Effective date: January 7, 2020

Proposal publication date: November 15, 2019

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


34 TAC §3.1205

The Comptroller of Public Accounts adopts amendments to §3.1205, concerning delivery sales of cigarettes (Health and Safety Code, Chapter 161, Subchapter R), without changes to the proposed text as published in the November 15, 2019, issue of the Texas Register (44 TexReg 7006). The rules will not be republished. The amendments implement Senate Bill 21, 86th Legislature, 2019, which is effective September 1, 2019. The bill amends provisions of the Health and Safety Code to raise the minimum legal age for the sale, distribution, possession, purchase, consumption, or receipt of cigarettes, e-cigarettes, or tobacco products from 18 to 21 years of age; and Health and Safety Code, §161.081 (Definitions) to define a "minor" as a person under 21 years of age.

Throughout the section, the comptroller replaces the phrases "person younger than 18 years of age" or "individual younger than 18 years of age" with the defined term "minor."

The comptroller amends subsection (a)(4) by deleting the definition of the term "shipping container" pursuant to the SB 21 amendment that repealed Health and Safety Code, §161.455 (Shipping Requirements). The comptroller adds the definition of the term "minor" to mean a person under 21 years of age. The new paragraph also includes the exceptions to the age restrictions reflected in SB 21 but not included in the statutory definition of the term.

The comptroller deletes paragraph (5) by deleting the definition of the term "shipping document" pursuant to the SB 21 amendment that repealed Health and Safety Code, §161.455 (Shipping Requirements). The subsequent paragraph is re-lettered.

The comptroller amends subsection (b)(1)(A) to provide an exception to the requirement that out-of-state sellers obtain cigarette distributor's permits from the comptroller's office if they intend to make delivery sales to Texas customers. The out-of-state seller does not need a distributor's permit if the seller is purchasing Texas-stamped cigarettes.

The comptroller amends subsection (b)(1)(B) to update the title of the referenced §3.286.

The comptroller amends the headings to subsections (c)(3)(A) and (B) to remove the duplicated heading and to be more descriptive of the paragraphs' contents.

The comptroller deletes subsection (d) as SB 21 removed the shipping requirement language from the statute.

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 the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2, and taxes, fees, or other charges that the comptroller administers under other law.

The amendments implement Health and Safety Code, §§161.081 (Definitions), 161.082 (Sale of Cigarettes, E-Cigarettes, or Tobacco Products to Persons Younger Than 21 Years of Age Prohibited; Proof of Age Required), 161.083 (Sale of Cigarettes, E-Cigarettes, or Tobacco Products to Persons Younger Than 30 years of Age), 161.084 (Warning Notice), 161.085 (Notification of Employees and Agents), 161.251 (Definitions), and 161.252 (Possession, Purchase, Consumption, or Receipt of Cigarettes, E-Cigarettes, or Tobacco Products by Minors Prohibited); and Health and Safety Code, Subchapter R (Delivery Sales of Cigarettes and E-Cigarettes).

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 December 18, 2019.

TRD-201904924

William Hamner

Special Counsel for Tax Administration

Comptroller of Public Accounts

Effective date: January 7, 2020

Proposal publication date: November 15, 2019

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