88R1171 BEF-D
	By: Thierry	H.B. No. 447

	A BILL TO BE ENTITLED
	AN ACT
	relating to sales and use taxes imposed on certain assault weapons;
	imposing taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by
	adding Chapter 165 to read as follows:
	CHAPTER 165. ASSAULT WEAPON TAXES
	SUBCHAPTER A. DEFINITIONS
	Sec. 165.0001.  LARGE CAPACITY AMMUNITION FEEDING DEVICE.
	(a) In this chapter, "large capacity ammunition feeding device"
	means a magazine, belt, drum, feed strip, or similar device,
	including a device joined or coupled with another in any manner,
	that has an overall capacity of, or that can be readily restored,
	changed, or converted to accept, more than 10 rounds of ammunition.
	(b)  The term "large capacity ammunition feeding device"
	does not include an attached tubular device designed to accept, and
	capable of operating only with, .22 caliber rimfire ammunition.
	Sec. 165.0002.  PRESUMPTIVE RETAIL PRICE. In this chapter,
	"presumptive retail price" means the average retail sales price of
	an item in the United States during the preceding calendar year, as
	the comptroller determines or estimates.
	Sec. 165.0003.  SEMIAUTOMATIC ASSAULT WEAPON. (a) In this
	chapter, "semiautomatic assault weapon" means:
	(1)  a semiautomatic rifle that has the capacity to use
	a magazine that is not a fixed magazine and has:
	(A)  a pistol grip;
	(B)  a forward grip;
	(C)  a folding, telescoping, or detachable stock;
	(D)  the ability to fold or adjust in a manner that
	reduces the length, size, or any other dimension, or otherwise
	enhances the concealability, of the rifle;
	(E)  a functional grenade launcher;
	(F)  a barrel shroud; or
	(G)  a threaded barrel;
	(2)  a semiautomatic rifle that has a fixed magazine
	with the capacity to accept more than 10 rounds of ammunition,
	except for an attached tubular device designed to accept, and
	capable of operating only with, .22 caliber rimfire ammunition;
	(3)  any part, combination of parts, component, device,
	attachment, or accessory that is designed or functions to
	accelerate the rate of fire of a semiautomatic firearm but not
	convert the semiautomatic firearm into a machine gun;
	(4)  a semiautomatic pistol that has the capacity to
	use a magazine that is not a fixed magazine and has:
	(A)  a threaded barrel;
	(B)  a second pistol grip;
	(C)  a barrel shroud;
	(D)  the capacity to accept a detachable magazine
	at a location outside of the pistol grip;
	(E)  a design that is identical, or nearly
	identical, to a design intended for a machine gun;
	(F)  a manufactured weight of 50 ounces or more
	when unloaded;
	(G)  a stabilizing brace or similar component; or
	(H)  a buffer tube or other part that protrudes
	horizontally behind the pistol grip;
	(5)  a semiautomatic pistol with a fixed magazine that
	has the capacity to accept more than 10 rounds;
	(6)  a semiautomatic shotgun that:
	(A)  either:
	(i)  has a fixed magazine with the capacity
	to accept more than five rounds; or
	(ii)  does not have a fixed magazine; and
	(B)  has:
	(i)  a folding, telescoping, or detachable
	stock;
	(ii)  a pistol grip or bird's head grip;
	(iii)  the ability to accept a detachable
	magazine;
	(iv)  a forward grip; or
	(v)  a functional grenade launcher;
	(7)  a shotgun with a revolving cylinder;
	(8)  a belt-fed semiautomatic firearm, including a TNW
	Firearms model M2HB firearm or FN America model M249S series
	firearm;
	(9)  any combination of parts from which a firearm
	described by Subdivisions (1) through (8) can be assembled; or
	(10)  the frame or receiver of a rifle or shotgun
	described by Subdivision (1), (2), (3), (4), or (8).
	(b)  The term "semiautomatic assault weapon" does not
	include a firearm that is:
	(1)  manually operated by bolt or lever action; or
	(2)  capable only of firing rimfire ammunition.
	Sec. 165.0004.  TAXABLE ASSAULT WEAPON. In this chapter,
	"taxable assault weapon" means a:
	(1)  large capacity ammunition feeding device; or
	(2)  semiautomatic assault weapon.
	SUBCHAPTER B. ASSAULT WEAPON SALES TAX
	Sec. 165.0051.  SALES TAX IMPOSED. (a)  A tax is imposed on
	each sale of a taxable assault weapon in this state.
	(b)  The tax rate is 1,000 percent of the greater of the:
	(1)  sales price of the taxable assault weapon sold; or
	(2)  presumptive retail price of the taxable assault
	weapon sold.
	Sec. 165.0052.  APPLICABILITY OF SALES TAX. (a)  The tax
	imposed under Section 165.0051 is in addition to the tax imposed
	under Subchapter C, Chapter 151.
	(b)  Except as provided by Section 165.0152, the tax imposed
	under Section 165.0051 does not apply to a sale unless the tax
	imposed under Subchapter C, Chapter 151, applies to the sale.
	SUBCHAPTER C. ASSAULT WEAPON USE TAX
	Sec. 165.0101.  USE TAX IMPOSED. (a) A tax is imposed on the
	storage, use, or other consumption in this state of a taxable
	assault weapon purchased from a retailer for storage, use, or other
	consumption in this state.
	(b)  The tax rate is 1,000 percent of the greater of the:
	(1)  sales price of the taxable assault weapon stored,
	used, or otherwise consumed in this state; or
	(2)  presumptive retail price of the taxable assault
	weapon stored, used, or otherwise consumed in this state.
	Sec. 165.0102.  APPLICABILITY OF USE TAX. (a) The tax
	imposed under Section 165.0101 is in addition to the tax imposed
	under Subchapter D, Chapter 151.
	(b)  Except as provided by Section 165.0152, the tax imposed
	under Section 165.0101 does not apply to the storage, use, or other
	consumption of a taxable assault weapon unless the tax imposed
	under Subchapter D, Chapter 151, applies to the storage, use, or
	other consumption.
	SUBCHAPTER D. APPLICATION OF OTHER LAW
	Sec. 165.0151.  ADMINISTRATION OF TAX. (a)  Except as
	provided by this chapter:
	(1)  the taxes imposed under this chapter are
	administered, imposed, collected, and enforced in the same manner
	as the taxes under Chapter 151 are administered, imposed,
	collected, and enforced; and
	(2)  the provisions of Chapter 151 applicable to the
	sales tax imposed under Subchapter C, Chapter 151, and the use tax
	imposed under Subchapter D, Chapter 151, apply to the sales and use
	taxes imposed under this chapter.
	(b)  Except as provided by Section 165.0152, a change in the
	law relating to the taxation of the sale or use of a taxable assault
	weapon under Chapter 151 also applies to the sales or use tax
	imposed under this chapter.
	Sec. 165.0152.  EXEMPTIONS. (a) Sections 151.302(a),
	151.303, 151.307, 151.309, and 151.330 apply to the sales and use
	taxes imposed under this chapter.
	(b)  Except as provided by Subsection (a), the provisions of
	Subchapter H, Chapter 151, do not apply to the sales and use taxes
	imposed under this chapter.
	SUBCHAPTER E. REPORTS AND RECORDS
	Sec. 165.0201.  REPORTS.  (a)  A person required to file a
	report under Section 151.403 who is also required to collect or pay
	a tax under this chapter shall file with the comptroller a report
	stating:
	(1)  for sales tax purposes, the make, model, sales
	price, and presumptive retail price of each taxable assault weapon
	sold by the seller during the reporting period;
	(2)  for use tax purposes, the make, model, sales
	price, and presumptive retail price of each taxable assault weapon
	sold by the retailer during the reporting period for storage, use,
	or other consumption in this state;
	(3)  the make, model, sales price, and presumptive
	retail price of each taxable assault weapon subject to the use tax
	that was acquired during the reporting period for storage, use, or
	other consumption in this state by a purchaser who did not pay the
	tax to a retailer;
	(4)  the amount of the taxes due under this chapter for
	the reporting period; and
	(5)  any other information the comptroller requires.
	(b)  The report required by this section for a reporting
	period is due on the same date that the tax payment for the period is
	due.
	Sec. 165.0202.  RECORDS.  (a)  A person required to file a
	report under Section 151.403 who is also required to collect or pay
	a tax under this chapter shall keep a complete record of:
	(1)  the make, model, sales price, and presumptive
	retail price of each taxable assault weapon sold during each
	reporting period;
	(2)  the make, model, sales price, and presumptive
	retail price of each taxable assault weapon purchased during each
	reporting period;
	(3)  all sales and use taxes, and any money represented
	to be sales or use tax, collected under this chapter during each
	reporting period; and
	(4)  any other information the comptroller requires.
	(b)  A person shall keep the records required by Subsection
	(a) for the period required by Section 151.025(b).
	SUBCHAPTER F. DISPOSITION OF PROCEEDS
	Sec. 165.0251.  DEPOSIT AND USE OF PROCEEDS.  The
	comptroller shall deposit the proceeds from taxes imposed under
	this chapter to the credit of an account in the general revenue fund
	that may be appropriated only to the Texas Education Agency for the
	purpose of providing funding to public schools to improve campus
	safety.
	SECTION 2.  This Act takes effect September 1, 2023.