HB3398 - Relating to the requirements for issuance of export documentation by a customs broker for purposes of sales and use taxes.

  89R9675 RDS-D     By: Lozano H.B. No. 3398       A BILL TO BE ENTITLED   AN ACT   relating to the requirements for issuance of export documentation   by a customs broker for purposes of sales and use taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 151.1575(a) and (b), Tax Code, are   amended to read as follows:          (a)  A customs broker licensed by the comptroller or an   authorized employee of the customs broker may issue documentation   certifying that delivery of tangible personal property was made to   a point outside the territorial limits of the United States as   required by Section 151.307(b)(2)(B) only if the customs broker or   authorized employee:                (1)  watches the property cross the border of the   United States; or                (2)  watches the property being placed on a common   carrier for delivery outside the territorial limits of the United   States[ ; or                [ (3)     verifies that the purchaser is transporting the   property to a destination outside of the territorial limits of the   United States by:                      [ (A)     examining a passport, laser visa   identification card, or foreign voter registration picture   identification indicating that the purchaser of the property   resides in a foreign country;                      [ (B)     requiring that the documentation examined   under Paragraph (A) have a unique identification number for that   purchaser;                      [ (C)     requiring the purchaser to produce the   property and the original sales receipt for the property;                      [ (D)     requiring the purchaser to state the foreign   country destination of the property which must be the foreign   country in which the purchaser resides;                      [ (E)     requiring the purchaser to state the date   and time the property is expected to arrive in the foreign country   destination;                      [ (F)     requiring the purchaser to state the date   and time the property was purchased, the name and address of the   place at which the property was purchased, the sales price and   quantity of the property, and a description of the property;                      [ (G)     requiring the purchaser and the broker or an   authorized employee to sign in the presence of each other a form   prepared or approved by the comptroller:                            [ (i)     stating that the purchaser has   provided the information and documentation required by this   subdivision; and                            [ (ii)     that contains a notice to the   purchaser that tangible personal property not exported is subject   to taxation under this chapter and the purchaser is liable, in   addition to other possible civil liabilities and criminal   penalties, for payment of an amount equal to the value of the   merchandise if the purchaser improperly obtained a refund of taxes   relating to the property;                      [ (H)     requiring the purchaser to produce the   purchaser's:                            [ (i)     Form I-94, Arrival/Departure record,   or its successor, as issued by the United States Immigration and   Naturalization Service, for those purchasers in a county not   bordering the United Mexican States; or                            [ (ii)     air, land, or water travel   documentation if the customs broker is located in a county that does   not border the United Mexican States; and                      [ (I)     requiring the purchaser and the broker or an   authorized employee, when using a power of attorney form, to   attest, as a part of the form and in the presence of each other:                            [ (i)     that the purchaser has provided the   information and documentation required by this subdivision; and                            [ (ii)     that the purchaser is on notice that   tangible personal property not exported is subject to taxation   under this chapter and the purchaser is liable, in addition to other   possible civil liabilities and criminal penalties, for payment of   an amount equal to the value of the merchandise if the purchaser   improperly obtained a refund of taxes relating to the property ].          (b)  A customs broker licensed by the comptroller or an   authorized employee of the customs broker may issue and deliver   documentation under Subsection (a) at any time after the tangible   personal property is purchased and the broker or employee completes   the process required by Subsection (a).  The comptroller shall   limit to six the number of receipts for which a single proof of   export documentation may be issued under this section.  The   documentation must include:                (1)  the name and address of the customs broker;                (2)  the license number of the customs broker;                (3)  the name and address of the purchaser;                (4)  the name and address of the place at which the   property was purchased;                (5)  the date and time of the sale;                (6)  a description and the quantity of the property;                (7)  the sales price of the property;                (8)  the foreign country destination of the property,   which may not be the place of export;                (9)  the date and time:                      (A)  at which the customs broker or authorized   employee watched the property cross the border of the United   States; or                      (B)  at which the customs broker or authorized   employee watched the property being placed on a common carrier for   delivery outside the territorial limits of the United States; [ or                      [ (C)     the property is expected to arrive in the   foreign country destination, as stated by the purchaser; ]                (10)  a declaration signed by the customs broker or an   authorized employee of the customs broker stating that:                      (A)  the customs broker is a licensed Texas   customs broker;  and                      (B)  the customs broker or authorized employee   inspected the property and the original receipt for the property;   and                (11)  an export certification stamp issued by the   comptroller.          SECTION 2.  The changes in law made by this Act do not affect   tax liability accruing before the effective date of this Act. That   liability continues in effect as if this Act had not been enacted,   and the former law is continued in effect for the collection of   taxes due and for civil and criminal enforcement of the liability   for those taxes.          SECTION 3.  This Act takes effect September 1, 2025.