34 Tex. Admin. Code § 3.1205 - Delivery Sales of Cigarettes (health and Safety Code, Chapter 161, Subchapter R)

(B) sales of cigarettes are restricted to those individuals who provide verifiable proof of age in accordance with paragraph (3) of this subsection;

(C) sales of cigarettes are taxable under Texas Tax Code, Chapter 154 (Cigarette Tax);

(D) the excise tax due on the cigarettes has been paid by the purchase of a tax stamp for each cigarette package; and

(E) that a tax stamp has been affixed to each cigarette package sold.

(5) Purchaser age certification. A person placing an order for cigarettes to be mailed or delivered must first:

(A) provide the seller with proof of age;

(B) provide the seller with a signed written statement that confirms:

(i) the purchaser's address and date of birth;

(ii) the purchaser's permission for a tobacco company to send mailings to the purchaser;

(iii) the purchaser's knowledge that signing another person's name to the written statement is illegal, and that state law prohibits the sales of cigarettes to, and the purchase of cigarettes by a minor; and

(C) pay for the cigarettes ordered by mail or over the Internet by check or by a credit or debit card that has been issued in the purchaser's name.

(d) Reporting requirements.

(1) Each seller who has made a delivery sale, and each person who has delivered cigarettes in connection with a delivery sale, is required to file a delivery sales report with the comptroller's office.

(A) For each delivery sale, a person must file a memorandum or a copy of an invoice that provides:

(i) the name, address, telephone number, and e-mail address of the individual to whom the delivery sale was made;

(ii) the brand or brands of the cigarettes that were sold; and

(iii) the quantity of cigarettes that were sold.

(B) A person may comply with the reporting requirement described in this paragraph by filing a Texas Cigarette/E-Cigarette Delivery Sales Report. The report is available on the comptroller's website.

(C) This filing is due on or before the 10th day of each month based on delivery sales made in the previous month.

(2) A seller who submits a monthly "Jenkins Act" report required by 15 U.S.C. Section 376, as amended, to the comptroller's office has complied with the monthly delivery sales reporting requirement and no further report is required.

(3) A person is exempt from the filing requirement in this subsection, if in the preceding two years from the date the report is due, the person is not in violation of the requirements under Health and Safety Code, Chapter 161, Subchapter R (Delivery Sales of Cigarettes and E-Cigarettes) and has not been reported under Health & Safety Code, §161.090 (Reports of Violations) to the comptroller as having violated Subchapter H (Distribution of Cigarettes, E-Cigarettes, or Tobacco Products).

(A) A person is exempt from the filing requirement in this subsection even if the person does not have a two-year report filing history, provided that the person has not committed a violation during the time the person has been making delivery sales.

(B) If a person violates the requirements of Health and Safety Code, Chapter 161, Subchapter R, or is reported to the comptroller under §161.090 for violating Health and Safety Code, Chapter 161, Subchapter H, the person must comply with the monthly filing requirements described in this subsection.

(i) A person who commits a violation, and who does not have two years of prior delivery sales, must file the required information from its first day of business.

(ii) A seller who commits a violation is liable for reporting all delivery sales for all business locations of the seller.

(e) Violations and Penalties.

(1) A person commits an offense if the person violates a provision of Health and Safety Code, Chapter 161, Subchapter R for which a criminal penalty is not otherwise provided, or Tax Code, Chapter 154. For example, a seller who makes a delivery sale of cigarettes to a minor commits an offense. The person's first offense is a Class C misdemeanor. If it is shown on the trial of a person that the person has previously been convicted of an offense under Health and Safety Code, Chapter 161, Subchapter R, the offense is a Class B misdemeanor.

(2) Knowing violations. A person who knowingly violates a provision of Health and Safety Code, Chapter 161, Subchapter R, or knowingly submits a certification described in subsection (c)(3)(A) of this section, in another person's name commits a felony of the third degree.

(3) Non-payment of tax. A person who fails to pay the cigarette tax or remit the sales and use tax due in connection with a delivery sale must pay to the state a civil penalty in an amount equal to five times the amount of tax due. This penalty is in addition to penalties imposed under Tax Code, Chapter 154.

(4) Forfeiture of cigarettes and property. Cigarettes sold, or cigarettes that a person attempted to sell in a delivery sale that does not comply with Health and Safety Code, Chapter 161, Subchapter R, are forfeited to the state and will be destroyed. A fixture, equipment, or other material or personal property on the premises of a person who, with the intent to defraud the state, fails to comply with the provisions of Health and Safety Code, Chapter 161, Subchapter R, is also forfeited to the state.

(5) Tax code violations. If the comptroller finds that a person violates Tax Code, Chapter 154, or a rule made pursuant to Chapter 154, the comptroller may impose a penalty of not more than $2,000 for each violation per day and suspend or revoke the person's permit pursuant to Tax Code, §154.1141 (Summary Suspension of a Permit).