Tobacco
Related Definitions in Texas Law
AS THE TAX CODE
SEPARATES CIGARETTES INTO A SEPARATE SECTION THAN CIGARS AND TOBACCO, THERE IS REDUNDANCY
IN MANY AREAS, HOWEVER THESE ARE THE PERTINENT SECTIONS OF THE CIGARETTE LAWS.
THE CIGAR AND TOBACCO
SECTIONS FOLLOW THIS LISTING.
TAX CODE
CHAPTER 154
CIGARETTE TAX
SUBCHAPTER A.
GENERAL PROVISIONS
§ 154.001.
DEFINITIONS.
and repeated in the
TEXAS ADMINISTRATIVE
CODE
TITLE 34
PART 1
CHAPTER 3
SUBCHAPTER G
RULE § 3.102.
APPLICATIONS, DEFINITIONS, PERMITS, AND REPORTS.
(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 an agent of a person outside this state and who receives cigarettes in
interstate commerce and stores the cigarettes for distribution or delivery to distributors
under orders from the person outside this state.
(3) Cigarette--A roll
for smoking that is made of tobacco or tobacco mixed with another ingredient and wrapped
or covered with a material other than tobacco. A cigarette is not a cigar.
(4) Cigarette weight--The weight
of an individual cigarette shall consist of the combined weight of tobacco, nontobacco
ingredients, wrapper, filter tip, mouthpiece, and any other attachments thereto that make
up the total product in the form available for sale to the consumer. The weight of a
cigarette does not include a carton, box, label, or other packaging materials.
(5) Commercial business
location--For purposes of this section, a commercial business location means the entire
premises occupied by a permit applicant or a person required to hold a permit under the
Tax Code, Chapter 154. The premises where cigarettes are stored or kept cannot be a
residence or a unit in a public storage facility.
(6) Common carrier--A motor
carrier registered under the Transportation Code, Chapter 643, or a motor carrier
operating under a certificate issued by the Interstate Commerce Commission or a successor
agency to the Interstate Commerce Commission.
(7) Consumer--A person
who possesses cigarettes for personal consumption.
(8) Distributor--A person who is
authorized to purchase for the purpose of making a first sale in this state cigarettes in
unstamped packages from manufacturers. A person who is authorized to stamp cigarette
packages. A person who ships, transports, or imports cigarettes into this state; acquires,
possesses, and makes a first sale of cigarettes in this state.
(9) Export warehouse--A place
where cigarettes from manufacturers in unstamped packages are stored 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, first sale means the first transfer of possession in connection with a
purchase, sale, or any exchange for value of cigarettes in intrastate commerce; the first
use or consumption of cigarettes in this state; or the loss of cigarettes in this state
whether through negligence, theft, or other unaccountable loss. First sales also includes
giving away cigarettes as promotional items.
(11) Importer or import
broker--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) Licensing--The agency
process concerning the issuance, denial, renewal, revocation, suspension, annulment,
withdrawal, or amendment of a license or permit.
(13) Manufacturer--A person who
manufactures and sells cigarettes to a distributor.
(14) Manufacturer's
representative--A person employed by a manufacturer to sell or distribute the
manufacturer's stamped cigarette packages.
(15) Permit--Any agency
license, certificate, approval, registration, or similar form of permission required by
law to buy, sell, stamp, store, transport, or distribute cigarettes.
(16) Permit holder--A
person who has been issued a bonded agent, distributor, importer, manufacturer,
wholesaler, or retailer permit under Tax Code, §154.101.
(17) Place of
business--A commercial business location where cigarettes are sold; a commercial business
location where cigarettes are kept for sale or consumption or otherwise stored; or a
vehicle from which cigarettes are sold.
(18) Retailer--A person
who engages in the practice of selling cigarettes to consumers. The owner of a
coin-operated cigarette vending machine is a retailer.
(19) Stamp--A stamp includes
only a stamp that is printed, manufactured, or made by authority of the comptroller; shows
payment of the tax imposed by Tax Code, §154.021; and is consecutively numbered and
uniquely identifiable as a Texas cigarette tax stamp.
(20) Wholesaler--A person,
including a manufacturer's representative, who sells or distributes cigarettes in this
state for resale. A wholesaler is not a distributor.
AS THE TAX CODE SEPARATES CIGARETTES
INTO A SEPARATE SECTION THAN CIGARS AND TOBACCO, THERE IS REDUNDANCY IN MANY AREAS,
HOWEVER THESE ARE THE PERTINENT SECTIONS OF THE CIGAR AND TOBACCO TAX LAWS.
The following
definitions are found in the
TAX CODE
CHAPTER 155
CIGAR AND TOBACCO TAX
SUBCHAPTER A.
GENERAL PROVISIONS
§ 155.001.
DEFINITIONS.
and repeated in the
TEXAS ADMINISTRATIVE
CODE
TITLE 34
PART 1
CHAPTER 3
SUBCHAPTER H
RULE § 3.121.
DEFINITIONS, IMPOSITION OF TAX, PERMITS, AND REPORTS.
(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
Texas who is an agent for a principal located outside of Texas and who receives cigars and
tobacco products in interstate commerce and stores the cigars and tobacco products for
distribution or delivery to distributors under orders from the principal.
(2) Cigar--A roll of
fermented tobacco that is wrapped in tobacco and that the main stream of smoke from which
produces an alkaline reaction to litmus paper.
(3) Common carrier--A motor carrier
registered under Transportation Code, Chapter 643, or a motor carrier operating under a
certificate issued by the Interstate Commerce Commission or its successor agency.
(4) Distributor--A person who:
(A) receives tobacco
products from a manufacturer for the purpose of making a first sale in Texas;
(B) brings or causes
to be brought into Texas tobacco products for sale, use, or consumption.
(5) Factory list price--The
published manufacturer gross cost to the distributor.
(6) Export warehouse--A location
in this state from which a person receives tobacco products from manufacturers and stores
the tobacco products for the purpose of making sales to authorized persons for resale,
use, or consumption outside the United States.
(7) First sale--Except as
otherwise provided by this section, the term means:
(A) the first
transfer of possession in connection with purchase, sale, or any exchange for value of
tobacco products in intrastate commerce;
(B) the first use or
consumption of tobacco products in this state; or
(C) the loss of
tobacco products in this state whether through negligence, theft, or other loss.
(8) Importer or import broker--A
person who ships, transports, or imports into Texas tobacco products manufactured or
produced outside the United States for the purpose of making a first sale in this state.
(9) Manufacturer--A person who
manufactures or produces tobacco products and sells tobacco products to a distributor.
(10) Manufacturer's
representative--A person who is employed by a manufacturer to sell or distribute the
manufacturer's tobacco products.
(11) Manufacturer's list
price--The published manufacturer gross cost to the distributor. The term is synonymous
with factory list price.
(12) Permit holder--A
bonded agent, distributor, importer, manufacturer, wholesaler, or retailer required to
obtain a permit under Tax Code, §155.041.
(13) Place of
business--the term means:
(A) a
commercial business location where tobacco products are sold;
(B) a
commercial business location where tobacco products are kept for sale or consumption or
otherwise stored and may not be a residence or a unit in a public storage facility; or
(C) a
vehicle from which tobacco products are sold.
(14) Retailer--A person
who engages in the practice of selling tobacco products to consumers and includes the
owner of a coin-operated vending machine. (Common
questions regarding who the "retailer" is, it is whoever
has "care and custody" of the store at the time of the
violation, or highest in the chain of command, who is on-site at
the time. A clerk can be the "retailer" if they
are the only one on-site, or if they are the highest in the
store's chain of command at the time of the violation. If
the manager is in the back room, then they would be considered the
"retailer" and be located and cited.)
(15) Tobacco product--A
cigar; smoking tobacco, including granulated, plug-cut, crimp-cut, ready-rubbed, and any
form of tobacco suitable for smoking in a pipe or as a cigarette; chewing tobacco,
including plug, scrap, and any kind of tobacco suitable for chewing; snuff or other
preparations of pulverized tobacco; or an article or product that is made of tobacco or a
tobacco substitute and that is not a cigarette.
(16) Trade discount, special
discount, or deals--Includes promotional incentive discounts, quantity purchase incentive
discounts, and timely payment or prepayment discounts.
(17) Weight of a cigar--The
combined weight of tobacco and nontobacco ingredients that make up the total product in
the form available for sale to the consumer, excluding any carton, box, label, or other
packaging materials.
(18) Wholesaler--A person,
including a manufacturer's representative, who sells or distributes tobacco products in
this state for resale but who is not a distributor.
ADDITIONAL
DEFINITIONS OF IMPORTANCE ARE LISTED BELOW AND ARE REFERENCED FROM THE CODE SECTION THEY
ARE CONTAINED IN.
SUBCHAPTER H.
DISTRIBUTION OF CIGARETTES OR TOBACCO PRODUCTS
§
161.081. DEFINITIONS.
In this subchapter:
(1) "Cigarette" has
the meaning assigned by Section 154.001, Tax Code.
(2) "Permit holder"
has the meaning assigned by Section 154.001 or 155.001, Tax Code, as applicable.
(3) "Retail sale"
means a transfer of possession from a retailer to a consumer in connection with a
purchase, sale, or exchange for value of cigarettes or tobacco products.
(4) "Retailer" has the
meaning assigned by Section 154.001 or 155.001, Tax Code, as applicable.
(5) "Tobacco product"
has the meaning assigned by Section 155.001, Tax Code.
(6) "Wholesaler" has
the meaning assigned by Section 154.001 or 155.001, Tax Code, as applicable.
Amended by Acts 1997, 75th Leg.,
ch. 671, § 1.01, eff. Sept. 1, 1997.
SUBCHAPTER K.
PROHIBITION OF CERTAIN CIGARETTE OR TOBACCO PRODUCT ADVERTISING; FEE
§ 161.121. DEFINITIONS.
In this subchapter:
(1) "Church" means a
facility that is owned by a religious organization and that is used primarily for
religious services.
(2) "Cigarette" has
the meaning assigned by Section 154.001, Tax Code.
(3) "School" means a
private or public elementary or secondary school.
(4) "Sign" means an
outdoor medium, including a structure, display, light device, figure, painting, drawing,
message, plaque, poster, or billboard, that is:
(A) used to advertise or inform;
and
(B) visible from the
main-traveled way of a street or highway.
(5) "Tobacco product"
has the meaning assigned by Section 155.001, Tax Code.
Added by Acts 1993, 73rd Leg.,
ch. 107, § 5.02(a), eff. Aug. 30, 1993. Amended by Acts 1997, 75th Leg., ch. 671, §
2.01, eff. Sept. 1, 1997.
SUBCHAPTER N. TOBACCO
USE BY MINORS
§
161.251. DEFINITIONS.
In this subchapter:
(1) "Cigarette" has
the meaning assigned by Section 154.001, Tax Code.
(2) "Tobacco product"
has the meaning assigned by Section 155.001, Tax Code. Added by Acts 1997, 75th Leg., ch.
671, § 3.01, eff. Jan. 1, 1998.
SUBCHAPTER P.
DISCLOSURE OF INGREDIENTS IN CIGARETTES AND TOBACCO PRODUCTS
§ 161.351. DEFINITIONS.
In this subchapter:
(1) "Cigarette" has
the meaning assigned by Section 154.001, Tax Code.
(2) "Manufacturer" has
the meanings assigned by Sections 154.001 and 155.001, Tax Code.
(3) "Tobacco product"
has the meaning assigned by Section 155.001, Tax Code. Added by Acts 1997, 75th Leg., ch.
1216, § 1, eff. Sept. 1, 1997. Renumbered from § 161.251 by Acts 1999, 76th Leg., ch.
62, § 19.01(64), eff. Sept. 1, 1999.
SUBCHAPTER R. DELIVERY
SALES OF CIGARETTES
Subchapter R, Delivery Sales of
Cigarettes, consisting of Secs. 161.451 to 161.462, was added by Acts 2003, 78th Leg., ch.
730, § 1.
§ 161.451. DEFINITIONS. In this
subchapter:
(1) "Delivery sale"
means a sale of cigarettes to a consumer in this state in which the purchaser submits the
order for the sale by means of a telephonic or other method of voice transmission, by
using the mails or any other delivery service, or through the Internet or another on-line
service, or the cigarettes are delivered by use of the mails or another delivery service.
A sale of cigarettes is a delivery sale regardless of whether the seller is located within
or without this state. A sale of cigarettes not for personal consumption to a person who
is a wholesale dealer or a retail dealer is not a delivery sale.
(2) "Delivery service"
means a person, including the United States Postal Service, that is engaged in the
commercial delivery of letters, packages, or other containers.
(3) "Shipping
container" means a container in which cigarettes are shipped in connection with a
delivery sale.
(4) "Shipping
documents" means a bill of lading, airbill, United States Postal Service form, or any
other document used to evidence the undertaking by a delivery service to deliver letters,
packages, or other containers.
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