2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 154 - Cigarette Tax › Subchapter A. General Provisions › Section 154.001. Definitions

Sec. 154.001.  DEFINITIONS.  In this chapter:
(1)  "Bonded agent" means a person in this state who is a third-party agent of a manufacturer outside this state and who receives cigarettes in interstate commerce and stores the cigarettes for distribution or delivery to distributors under orders from the manufacturer.
(2)  "Cigarette" means a roll for smoking:
(A)  that is made of tobacco or tobacco mixed with another ingredient and wrapped or covered with a material other than tobacco;  and
(B)  that is not a cigar.
(3)  "Commercial business location" means the entire premises occupied by a permit applicant or a person required to hold a permit under this chapter.
(4)  "Common carrier" means a motor carrier registered under Chapter 643, Transportation Code, or a motor carrier operating under a certificate issued by the Interstate Commerce Commission or a successor agency to the Interstate Commerce Commission.
(5)  "Consumer" means a person who possesses cigarettes for personal consumption.
(6)  "Counterfeit stamp" means a sticker, label, print, tag, or token that is used or is intended to be used to simulate a stamp and that is not authorized or issued by the comptroller.
(7)  "Distributor" means a person who:
(A)  is authorized to purchase for the purpose of making a first sale in this state cigarettes in unstamped packages from manufacturers who distribute cigarettes in this state and to stamp cigarette packages;
(B)  ships, transports, imports into this state, acquires, or possesses cigarettes and makes a first sale of the cigarettes in this state;
(C)  manufactures or produces cigarettes; or
(D)  is an importer.
(7-a) "Engage in business" means, in relation to cigarettes, engaging by a person, either directly or through a representative, in any of the following activities:
(A)  selling cigarettes in or into this state;
(B)  using a warehouse or another location to store cigarettes; or
(C)  otherwise conducting through a physical presence cigarette-related business in this state.
(8)  "Export warehouse" means a person in this state who receives cigarettes in unstamped packages from manufacturers and stores the cigarettes for the purpose of making sales to authorized persons for resale, use, or consumption outside the United States.
(9)  "First sale" means, except as otherwise provided by this chapter:
(A)  the first transfer of possession in connection with a purchase, sale, or any exchange for value of cigarettes in or into this state, which:
(i)  includes the sale of cigarettes by:
(a)  a distributor in or outside this state to a distributor, wholesaler, or retailer in this state; and
(b)  a manufacturer in this state who transfers the cigarettes in this state; and
(ii)  does not include:
(a)  the sale of cigarettes by a manufacturer outside this state to a distributor in this state;
(b)  the transfer of cigarettes from a manufacturer outside this state to a bonded agent in this state;
(c)  the sale of cigarettes by a manufacturer, bonded agent, distributor, or importer to an interstate warehouse in this state; or
(d)  the transfer of cigarettes by an interstate warehouse in an interstate warehouse transaction;
(B)  the first use or consumption of cigarettes in this state; or
(C)  the loss of cigarettes in this state whether through negligence, theft, or other unaccountable loss.
(10)  "Importer" means a person who ships, transports, or imports into this state cigarettes manufactured or produced outside the United States for the purpose of making a first sale in this state.
(11)  "Individual package of cigarettes" means a package that contains at least 20 cigarettes.
(11-a) "Interstate warehouse" means a person in this state who receives unstamped cigarettes from a manufacturer, bonded agent, distributor, or importer and stores the cigarettes exclusively for an interstate warehouse transaction.
(11-b) "Interstate warehouse transaction" means the sale or delivery of cigarettes from an interstate warehouse to a person located in another state who is licensed or permitted by the other state to affix that state's cigarette stamps or otherwise pay the state's excise tax on cigarettes as required.
(12)  "Manufacturer" means a person who manufactures, fabricates, or assembles cigarettes, or causes or arranges for the manufacture, fabrication, or assembly of cigarettes, for sale or distribution.
(13)  "Manufacturer's representative" means a person employed by a manufacturer to sell or distribute the manufacturer's stamped cigarette packages.
(14)  "Permit holder" means a bonded agent, interstate warehouse, distributor, wholesaler, manufacturer, importer, export warehouse, or retailer who obtains a permit under Section 154.101.
(15)  "Place of business" means:
(A)  a commercial business location where cigarettes are sold;
(B)  a commercial business location where cigarettes are kept for sale or consumption or otherwise stored;
(C)  a vehicle from which cigarettes are sold; or
(D)  a vending machine from which cigarettes are sold.
(16)  "Previously used stamp" means a stamp that has been used to show payment of a tax imposed by this chapter and is again used, sold, or possessed for sale or use to show payment of a tax imposed by this chapter.
(17)  "Retailer" means a person who engages in the business of selling cigarettes to consumers and includes the owner of a cigarette vending machine.
(17-a) "Roll-your-own machine" means a machine for commercial use at a retail premise that is capable of producing cigarettes only in quantities for personal use.
(18)  "Stamp" includes only a stamp that:
(A)  is printed, manufactured, or made by authority of the comptroller;
(B)  shows payment of the tax imposed by this chapter;
(C)  is consecutively numbered and uniquely identifiable as a Texas tax stamp; and
(D)  is not damaged beyond recognition as a valid Texas tax stamp.
(19)  "Wholesaler" means a person, including a manufacturer's representative, who sells or distributes cigarettes in this state for resale but who is not a distributor or interstate warehouse.
Acts 1981, 67th Leg., p. 1638, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1985, 69th Leg., ch. 58, Sec. 1, eff. March 1, 1986;  Acts 1989, 71st Leg., ch. 240, Sec. 1, eff. Oct. 1, 1989;  Acts 1991, 72nd Leg., ch. 409, Sec. 1, eff. June 7, 1991;  Acts 1995, 74th Leg., ch. 705, Sec. 10, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 165, Sec. 30.262, eff. Sept. 1, 1997;  Acts 1997, 75th Leg., ch. 1040, Sec. 40, eff. Sept. 1, 1997;  Acts 1997, 75th Leg., ch. 1423, Sec. 19.15, eff. Sept. 1, 1997;  Acts 2001, 77th Leg., ch. 540, Sec. 1, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 1263, Sec. 46, eff. Oct. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 1334 (H.B. 4614), Sec. 1, eff. September 1, 2019.
Acts 2021, 87th Leg., R.S., Ch. 994 (S.B. 248), Sec. 7, eff. September 1, 2021.