Relating to a deduction from the amount of taxable sales used to calculate the amount of sales and use taxes that the owners of restaurants that participate in an oyster shell recycling program are required to remit to the comptroller of public accounts.

Contracts

• Waste Management Riders: Existing waste disposal contracts must be amended or supplemented. You must contract with a vendor explicitly designated as a "Qualified Oyster Shell Recycling Program" by the Comptroller.
• Indemnification: Insert clauses requiring vendors to provide certified weight tickets and to notify you immediately if their state qualification is revoked, as this directly impacts your tax liability.

Hiring/Training

• Kitchen Protocol: Back-of-house staff must be retrained to segregate oyster shells from general food waste immediately. Contamination often disqualifies shells from recycling programs.
• Weighing Procedures: Designate staff responsible for weighing shells and logging data prior to vendor pickup if the vendor does not provide certified weight manifests.

Reporting & Record-Keeping

• Tax Filing: This is a deduction from *taxable sales*, not a credit against tax due. Your accounting team must adjust the gross taxable sales figure on the Texas Sales and Use Tax Return.
• Audit Trail: Maintain a specific "Shell Log" reconciling weight tickets (in 50-lb increments) to the deduction claimed for a minimum of four years.

Fees & Costs

• Net Savings: This legislation reduces tax remittance.
• Operational Cost: Minimal labor costs associated with sorting and weighing; potential fees from specialized recycling vendors may offset tax savings.