Sec. 403.107. SINGLE LOCAL USE TAXES COLLECTED BY REMOTE SELLERS. (a) The comptroller shall deposit revenue remitted to the comptroller from taxes computed using the single local use tax rate under Section 151.0595(b)(2), Tax Code, in the state treasury and shall keep records of the amount of money deposited for each reporting period. Money deposited under this subsection shall be held in trust for the benefit of eligible taxing units, as determined under Subsection (b). The comptroller shall distribute money held in trust under this section to each eligible taxing unit in the amount and manner provided by this section.

(b) A local taxing unit is an eligible taxing unit for purposes of this section if it has adopted a sales and use tax authorized or governed by Title 3, Tax Code.

(c) Subject to Subsection (d), the comptroller shall transmit to each eligible taxing unit's treasurer, or to the officer performing the functions of that office, on a monthly basis, the taxing unit's share of money held in trust under Subsection (a), together with the pro rata share of any penalty or interest on delinquent taxes computed using the single local use tax rate that may be collected. Before transmitting the funds, the comptroller shall deduct two percent of each taxing unit's share as a charge by the state for its services under this section and deposit that amount into the state treasury to the credit of the comptroller's operating fund. Interest earned on all deposits made in the state treasury under this section shall be credited to the general revenue fund.

(d) The comptroller shall retain a portion of each eligible taxing unit's share of money held in trust under Subsection (a), not to exceed five percent of the amount eligible to be transmitted to the taxing unit under Subsection (c). From the amounts retained, the comptroller may make refunds for overpayments of taxes computed using the single local use tax rate, make refunds to purchasers as provided by Section 151.0595(f), Tax Code, and redeem dishonored checks and drafts deposited under Subsection (a).

(e) The comptroller shall compute for each calendar month the percentage of the total sales and use tax allocations made pursuant to Title 3, Tax Code, including any local sales and use taxes governed by any provision of Title 3, Tax Code, to each eligible taxing unit. The comptroller shall determine each eligible taxing unit's share of the money held in trust from deposits under Subsection (a) for that month by applying the percentage computed under this subsection for the eligible taxing unit to the total amount held in trust from deposits for that month.

(f) The comptroller may combine an eligible taxing unit's share of the money held in trust under Subsection (a) with other money held for that taxing unit.

(g) The comptroller may adopt rules to administer this section.

Added by Acts 1989, 71st Leg., ch. 291, Sec. 4.

Reenacted and amended by Acts 2019, 86th Leg., R.S., Ch. 51 (H.B. 2153), Sec. 3, eff. October 1, 2019.