State Representative Byron Cook announced Thursday that the Texas House of Representatives passed a bill that will bring hundreds of millions of dollars to the State of Texas without raising taxes. Currently, consumers are paying sales taxes to retailers, but not all of the taxes collected are being remitted to the State.
This bill amends the Tax Code to require tobacco, beer and wine distributors and wholesalers to tender monthly electronic reports to the Comptroller, detailing the sales of beer, wine and tobacco products to retailers. There is a growing concern over the actions of certain sales tax permit holders who collect sales taxes but do not remit the money to the state.
The regular reporting required by the bill would multiply the effectiveness and reach of the Comptroller’s audit and enforcement staffs, which would result in a significant positive fiscal impact for the state. The data would allow the comptroller to statistically identify and focus auditing resources on those most likely to be evading their legitimate sales tax obligation.
The level of detail required for reporting is designed to minimize the burden on affected wholesalers and distributors. The bill gives the comptroller discretion to allow alternative methods of reporting for those wholesalers or distributors who are unable to comply with electronic reporting.
The reported information would be confidential, according to the same standards that govern all taxpayer information gathered by the Comptroller.
“I appreciate all of the hard work of the State Comptroller, the Texas Petroleum Marketers and Convenience Store Operators, the Wholesale Beer Distributors of Texas, The Texas Beer Alliance as well as the tobacco wholesalers,” Cook said Thursday.
“With the cooperative effort of these groups we were able to craft legislation that will benefit the entire State of Texas.”
