2023 Texas Statutes
Tax Code
Title 2 - State Taxation
Subtitle E - Sales, Excise, and Use Taxes
Chapter 151 - Limited Sales, Excise, and Use Tax
Subchapter L. Prohibited Acts and Civil and Criminal Penalties
Section 151.704. Sales Tax Absorption; Criminal Penalty
Sec. 151.704. SALES TAX ABSORPTION; CRIMINAL PENALTY. (a) Except as provided by Subsections (b) and (c), a retailer commits an offense if the retailer 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.
(b) A retailer may directly or indirectly advertise, hold out, or state to a customer or to the public that the retailer will pay the tax for the customer if:
(1) the retailer indicates in the advertisement, holding out, or statement that the retailer is paying the tax for the customer;
(2) the retailer does not indicate or imply in the advertisement, holding out, or statement that the sale is exempt or excluded from taxation; and
(3) any purchaser's receipt or other statement given to the customer listing the sales price paid or to be paid by the customer separately states the amount of the tax and indicates that the tax will be paid by the retailer.
(c) This section does not prohibit a utility from billing a customer in one lump-sum price including the utility sales price and the amount of the tax imposed by this chapter.
(d) An offense under this section is a misdemeanor punishable by a fine of not more than $500.
Acts 1981, 67th Leg., p. 1583, ch. 389, Sec. 1, eff. Jan. 1, 1982.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 1119 (H.B. 2358), Sec. 2, eff. October 1, 2019.
