Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter G - CIGARETTE TAX › Section 3.102 - Applications, Definitions, Permits, and Reports

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  The following words and terms, when used in this section, shall have the
				  following meanings, unless the context clearly indicates otherwise.
(1) Agency--The Comptroller of Public
				  Accounts of the State of Texas or the comptroller's duly authorized agents and
				  employees.
(2) Bonded agent--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.
(3) Cigar--A roll of
				  fermented tobacco that is wrapped in tobacco and the main stream of smoke from
				  which produces an alkaline reaction to litmus paper.
(4) Cigarette--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.
(5) Commercial
				  business location--The entire premises occupied by a permit applicant or a
				  person required to hold a permit under Tax Code, Chapter 154 (Cigarette Tax). A
				  commercial business location cannot include a residence or a unit in a public
				  storage facility.
(6) Consumer--A
				  person who possesses cigarettes for personal consumption.
(7) Distributor--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.
(8) Engage in
				  business--A person engaging 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.
(9) Export
				  warehouse--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.
(10) First sale--Except as
				  otherwise provided in this section;
(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 includes:
(i) the sale of cigarettes by:
(ii) a distributor in or outside this state
				  to a distributor, wholesaler, or retailer in this state; and
(iii) a manufacturer in this state who
				  transfers the tobacco products in this state; and
(iv) does not include:
(I) the sale of cigarettes by a manufacturer
				  outside this state to a distributor in this state;
(II) the transfer of cigarettes from a
				  manufacturer outside this state to a bonded agent in this state;
(III) the sale of cigarettes by a
				  manufacturer, bonded agent, distributor, or importer to an interstate warehouse
				  in this state; or
(IV) 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. First sale also includes giving away cigarettes as
				  promotional items.
(11)
				  Importer--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.
(12)
				  Interstate warehouse--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.
(13) Interstate warehouse transaction--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.
(14) Manufacturer--A
				  person who manufactures, fabricates, or assembles cigarettes, or causes or
				  arranges for the manufacture, fabrication, or assembly of cigarettes, for sale
				  or distribution.
(15)
				  Manufacturer's representative--A person employed by a manufacturer to sell or
				  distribute the manufacturer's stamped cigarette packages.
(16) Permit--Any agency license, certificate,
				  approval, registration, or similar form of permission required by law to buy,
				  sell, stamp, store, transport, or distribute cigarettes. A permit includes a
				  vending machine decal.
(17) Permit
				  holder--A person who has been issued a bonded agent, interstate warehouse,
				  distributor, importer, export warehouse, manufacturer, wholesaler, or retailer
				  permit under Tax Code, §
											154.101(Permits).
(18) Place of business--
(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.
(19)
				  Retailer--A person who engages in the business of selling cigarettes to
				  consumers. The owner of a cigarette vending machine is a retailer.
(20) 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 Tax Code, §
												154.021 (Imposition and Rate
				  of Tax);
(C) is consecutively
				  numbered and uniquely identifiable as a Texas cigarette tax stamp;
				  and
(D) is not damaged beyond
				  recognition as a valid Texas tax stamp.
(21) Wholesaler--A person, including a
				  manufacturer's representative, who sells or distributes cigarettes in this
				  state for resale. A wholesaler is not a distributor.