Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter O - STATE AND LOCAL SALES AND USE TAXES › Section 3.305 - Criminal Offenses and Penalties

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  General. Tax Code, Chapter 151, prohibits certain activities and provides
				  criminal penalties for violations.
(b) Criminal offenses provided in Tax Code,
				  Chapter 151, include, but are not limited to, the following:
(1) A seller commits an offense if the seller
				  directly or indirectly advertises, holds out, or states to a customer or to the
				  public that the tax is not part of the sales price payable by the customer.
				  This offense is a misdemeanor punishable by a fine of not more than $500 for
				  each occurrence.
(2) It is not a
				  criminal offense if:
(A) a seller indicates
				  in an advertisement, holding out, or statement that the seller is paying the
				  tax due on the purchased item(s) for the customer;
(B) the seller does not indicate or imply in
				  the advertisement, holding out, or statement that the sale is exempt or
				  excluded from taxation; and
(C)
				  any purchaser's receipt or other statement given to the customer lists the
				  sales price paid or to be paid by the customer, separately states the amount of
				  the tax due on the purchase price, and indicates that the tax will be paid and
				  remitted by the seller.
(3) A person commits an offense if the person
				  intentionally or knowingly makes a false entry in, or a fraudulent alteration
				  of, an exemption or resale certificate; makes, presents, or uses an exemption
				  or resale certificate with knowledge that it is false and with intent that the
				  certificate be accepted as valid; or intentionally conceals, removes, or
				  impairs the verity or legibility of an exemption or resale certificate; or
				  unreasonably impedes the availability of an exemption or resale certificate. An
				  offense is:
(A) a Class C misdemeanor if the
				  tax avoided by the use of the exemption or resale certificate is less than
				  $20;
(B) a Class B misdemeanor if
				  the tax avoided by the use of the exemption or resale certificate is $20 or
				  more but less than $200;
(C) a
				  Class A misdemeanor if the tax avoided by the use of the exemption or resale
				  certificate is $200 or more but less than $750;
(D) a felony of the third degree if the tax
				  avoided by the use of the exemption or resale certificate is $750 or more but
				  less than $20,000; and
(E) a felony
				  of the second degree if the tax avoided by the use of the exemption or resale
				  certificate is $20,000 or more.
(4) A person or officer of a corporation
				  commits an offense if the person or the corporation engages in business as a
				  seller in this state without a permit or with a suspended permit. A separate
				  offense is committed each day a person operates a business without a permit or
				  with a suspended permit. An offense is:
(A) a
				  Class C misdemeanor for a first offense;
(B) a Class B misdemeanor punishable by a
				  fine not to exceed $2,000 for a second conviction;
(C) a Class A misdemeanor punishable by a
				  fine not to exceed $4,000 for a third conviction; and
(D) a Class A misdemeanor punishable by a
				  fine not to exceed $4,000, confinement in jail for a term not to exceed a year,
				  or both the fine and confinement for a fourth or subsequent
				  conviction.
(5) A person
				  commits an offense if the person intentionally or knowingly fails to pay to the
				  comptroller the tax collected by that person. When tax is collected and not
				  paid pursuant to one scheme or continuous course of conduct, all such conduct
				  may be considered as one offense and the amounts of tax collected and not paid
				  may be aggregated in determining the grade of the offense. An offense is:
(A) a Class C misdemeanor if the amount of
				  the tax collected and not paid is less than $50;
(B) a Class B misdemeanor if the amount of
				  the tax collected and not paid is $50 or more but less than $500;
(C) a Class A misdemeanor if the amount of
				  the tax collected and not paid is $500 or more but less than $1,500;
(D) a state jail felony if the amount of the
				  tax collected and not paid is $1,500 or more but less than $20,000;
(E) a felony of the third degree if the
				  amount of the tax collected and not paid is $20,000 or more but less than
				  $100,000;
(F) a felony of the
				  second degree if the amount of the tax collected and not paid is $100,000 or
				  more but less than $200,000; and
(G) a felony of the first degree if the
				  amount of the tax collected and not paid is $200,000 or more.
(6) A person commits an offense if
				  the person refuses to furnish a report as required by Tax Code, Chapter 151, or
				  by the comptroller. An offense is:
(A) a Class
				  C misdemeanor for a first offense;
(B) a Class B misdemeanor punishable by a
				  fine not to exceed $2,000 for a second conviction; and
(C) a Class A misdemeanor punishable by a
				  fine not to exceed $4,000 for a third or subsequent conviction.
(7) A person commits an offense if
				  the person intentionally or knowingly conceals, destroys, makes a false entry
				  in, or fails to make an entry in records that are required to be made or kept
				  under Tax Code, Chapter 151. An offense is a felony of the third
				  degree.
(8) A person commits an
				  offense if the person fails to produce or allow inspection of a record that is
				  required to be kept under Tax Code, Chapter 151, within an allowed period of
				  time after a person who is authorized by the comptroller requests the record.
				  Except as provided in paragraph (9) of this subsection, an offense is a Class C
				  misdemeanor. A separate offense is committed each day the person fails to allow
				  inspection of records or fails to produce records after the allowed time period
				  expired. See subsection (c) of this section for certain restrictions.
(9) A person commits an offense if the person
				  intentionally fails to produce to the comptroller records that document the
				  taxpayer's taxable sale of items that the taxpayer obtained using a resale
				  certificate. The records to which the offense applies are those required to be
				  kept under Tax Code, §
											151.025 (Records Required to
				  be Kept), which were requested by the comptroller under Tax Code, §
											151.023 (Investigations and
				  Audits) and which are not produced in the period required by that section. The
				  items to which the offense applies are items the sales of which are required to
				  be reported to the comptroller under Tax Code, §§ 151.433 (Reports by
				  Wholesalers and Distributors of Beer, Wine, and Malt Liquor), 154.212 (Reports
				  by Wholesalers and Distributors of Cigarettes), or 155.105 (Reports by
				  Wholesalers and Distributors of Cigars and Tobacco Products). It is an
				  affirmative defense to prosecution under this paragraph that the items listed
				  for purchase on the resale certificate had not been resold at the time of the
				  comptroller's request for records under Tax Code, §
											151.023. If the conduct
				  described by this paragraph is related to one scheme or continuous course of
				  conduct, all such conduct may be considered as one offense and the amounts
				  aggregated in determining the grade of the offense. See subsection (c) of this
				  section for certain restrictions. An offense is:
(A) a Class C misdemeanor if the tax avoided
				  by use of the resale certificate is less than $20;
(B) a Class B misdemeanor if the tax avoided
				  by use of the resale certificate is $20 or more but less than $200;
(C) a Class A misdemeanor if the tax avoided
				  by use of the resale certificate is $200 or more but less than $750;
(D) a felony of the third degree if the tax
				  avoided by use of the resale certificate is $750 or more but less than $20,000;
				  or
(E) a felony of the second
				  degree if the tax avoided by use of the resale certificate is $20,000 or
				  more.