Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter G - CIGARETTE TAX › Section 3.101 - Cigarette Tax and Stamping Activities

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) 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.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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:
(i) includes the sale of cigarettes by:
(I) a distributor in or outside this state to
				  a distributor, wholesaler, or retailer in this state; and
(II) a manufacturer in this state who
				  transfers the cigarettes in this state; and
(ii) 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.
(7) Individual package of cigarettes--A
				  package that contains at least 20 cigarettes.
(8) 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.
(9) 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.
(10) 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.
(11) Retailer--A
				  person who engages in the business of selling cigarettes to consumers and
				  includes the owner of a cigarette vending machine.
(12) 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.
(13) Wholesaler--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.