TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 3. TAX ADMINISTRATION

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

34 TAC §3.1201

The Comptroller of Public Accounts adopts amendments to §3.1201, concerning fee for outdoor advertising of cigarettes or tobacco products, without changes to the proposed text as published in the December 6, 2019, issue of the Texas Register (44 TexReg 7492). The rule will not be republished. The comptroller amends the rule to replace statutory references with definitions, to incorporate statutory changes made by House Bill 3475, 86th Legislature, 2019, and to remove outdated requirements and expired effective date language. The comptroller also amends the rule to include a title for penalties and address when a penalty is applicable for failure to remit tax when a report is due.

The comptroller amends subsection (a)(1) and (5) to replace statutory citations with the actual definition of cigarettes and the revised definition of tobacco products from House Bill 3475. See Tax Code, §154.001 and §155.001.

The comptroller amends subsection (c) to rename the title to reflect “Due date and reporting period”. The comptroller removes paragraph (2) regarding outdated reporting requirements for cigarettes and tobacco products. Additionally, the comptroller restructures subsection (c) to remove the graphic and incorporate the graphic's language relating to reporting requirements and the due dates in paragraphs (1) through (4).

The comptroller amends subsection (g)(1) to add the title “Penalty” to address a penalty is applicable when a purchaser fails to timely remit tax when due. Paragraph (2) removes existing language referencing the Tax Code and amends the language to include interest provisions related to delinquent reports.

The comptroller amends subsection (h) to remove the word “the” before all statutory references throughout this subsection.

The comptroller deletes subsection (j) to remove outdated language regarding the effective date of the fee imposed on cigarette and tobacco product outdoor advertising, which is no longer necessary to administer current law.

No comments were received regarding adoption of the amendment.

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

The section implements Health and Safety Code, §161.123 (Advertising Fee).

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 January 9, 2020.

TRD-202000072

William Hamner

Special Counsel for Tax Administration

Comptroller of Public Accounts

Effective date: January 29, 2020

Proposal publication date: December 6, 2019

For further information, please call: (512) 475-0387