| (5) The comptroller may issue a combination permit
for cigarettes and tobacco products to a person who is a distributor,
importer, manufacturer, wholesaler, bonded agent, interstate warehouse,
or retailer as defined by Tax Code, Chapter 154 and Chapter 155 (Cigars
and Tobacco Products Tax). A person who receives a combination permit
pays only the higher of the two permit fees.
(6) The comptroller will not issue a permit for a residence
or a unit in a public storage facility because cigarettes may not
be stored at such places.
(7) A permit is not required for a research facility
that possesses and only uses cigarettes for experimental purposes.
(8) A person who engages in the business of selling
cigarettes for commercial purposes who provides a roll-your-own machine
that is available for use by consumers must obtain a manufacturer's,
distributor's and a retailer's permit.
(9) The comptroller may not issue a distributor's permit
and an interstate warehouse permit to the same location.
(10) A person who engages in the business of importing
cigarettes from a foreign country into Texas is required to be permitted
as a cigarette distributor.
(c) Sales and purchase requirements for permit holders.
Except for retail sales to consumers, cigarettes may only be sold
or distributed by and between permit holders as provided by this section.
A permit holder may engage in the following business activities:
(1) A manufacturer outside this state who is not a
permitted distributor may sell cigarettes only to a permitted distributor
or interstate warehouse.
(2) A permitted distributor may sell cigarettes only
to a permitted distributor, wholesaler, or retailer. A permitted distributor
who manufactures or produces cigarettes in this state may sell those
cigarettes to a permitted interstate warehouse.
(3) A permitted importer may sell cigarettes only to
a permitted interstate warehouse, distributor, wholesaler, or retailer.
(4) A permitted wholesaler may sell cigarettes only
to a permitted distributor, wholesaler, or retailer.
(5) A permitted retailer may sell cigarettes only to
the consumer and may purchase cigarettes only from a permitted distributor
or wholesaler.
(6) A permitted export warehouse may sell cigarettes
only to persons authorized to sell or consume unstamped cigarettes
outside the United States.
(7) A manufacturer's representative may sell cigarettes
only to a permitted distributor, wholesaler, or retailer.
(8) A permitted interstate warehouse may sell cigarettes
only in an interstate warehouse transaction. An interstate warehouse
may not make an intrastate sale of cigarettes without written authorization
by the comptroller.
(d) Permit period.
(1) Bonded agent, interstate warehouse, distributor,
importer, manufacturer, wholesaler, and motor vehicle permits expire
on the last day of February of each year.
(2) Retailer permits expire on the last day of May
of each even-numbered year.
(e) Permit fees. An application for a bonded agent,
interstate warehouse, distributor, manufacturer, wholesaler, motor
vehicle, or retailer permit must be accompanied by the appropriate
fee. The permit fee payment must be made in cash, by money order,
check, or credit card.
(1) The permit fee for a bonded agent is $300.
(2) The permit fee for an interstate warehouse is $300.
(3) The permit fee for a distributor is $300.
(4) The permit fee for a manufacturer with representation
in Texas is $300.
(5) The permit fee for a wholesaler is $200.
(6) The permit fee for a motor vehicle is $15.
(7) The permit fee for a retailer permit is $180.
(8) No permit fee is required to obtain an importer
or an export warehouse permit.
(9) A $50 fee is assessed for failure to obtain a permit
in a timely manner.
(10) The comptroller prorates the permit fee for new
permits according to the number of months remaining in the permit
period. If a permit will expire within three months of the date of
issuance, the comptroller may collect the prorated permit fee for
the current permit period and the total permit fee for the next permit
period.
(11) A person issued a permit for a place of business
that permanently closes before the permit expiration date is not entitled
to a refund of the permit fee.
(f) Permit issuance, denial, suspension, or revocation.
(1) The comptroller shall issue a permit to a distributor,
importer, manufacturer, export warehouse, wholesaler, bonded agent,
interstate warehouse or retailer if the comptroller receives an application
and any applicable fee, believes that the applicant has complied with
Tax Code, §154.101, and determines that issuing the permit will
not jeopardize the administration and enforcement of Tax Code, Chapter
154.
(2) If the comptroller determines that an existing
permit should be suspended or revoked or a permit should be denied
because of the applicant's prior conviction of a crime and the relationship
of the crime to the license, the comptroller will notify the applicant
or permittee in writing by personal service or by mail of the reasons
for the denial, suspension, revocation, or disqualification, the review
procedure provided by Occupations Code, §53.052 (Judicial Review),
and the earliest date that the permit holder or applicant may appeal
the denial, suspension, revocation, or disqualification.
(g) Reports.
(1) Manufacturer reports must be filed on or before
the 25th day of each month for transactions that occurred during the
preceding month.
(2) All cigarette distributor and wholesaler reports
and payments must be filed on or before the 25th day of each month
for transactions that occurred during the preceding month.
(3) All wholesaler and distributor reports of sales
to retailers required by the comptroller under Tax Code, §154.212
(Reports by Wholesalers and Distributors of Cigarettes), shall be
filed in accordance with §3.9 of this title (relating to Electronic
Filing of Returns and Reports; Electronic Transfer of Certain Payments
by Certain Taxpayers).
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| Source Note: The provisions of this §3.102 adopted to be effective June 3, 2003, 28 TexReg 4309; amended to be effective December 2, 2007, 32 TexReg 8520; amended to be effective May 21, 2013, 38 TexReg 3055; amended to be effective September 19, 2018, 43 TexReg 5985; amended to be effective March 16, 2020, 45 TexReg 1858; amended to be effective March 1, 2023, 48 TexReg 1150 |
