By Hirschi H.B. No. 2844
75R8625 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to increasing the tax on cigarettes, cigars, and other
1-3 tobacco products to fund public elementary and secondary schools.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 154.021(b), Tax Code, is amended to read
1-6 as follows:
1-7 (b) The tax rates are:
1-8 (1) $33 [$20.50] per thousand on cigarettes weighing
1-9 three pounds or less per thousand; and
1-10 (2) the rate provided by Subdivision (1) plus $2.10
1-11 per thousand on cigarettes weighing more than three pounds per
1-12 thousand.
1-13 SECTION 2. Section 154.603(b), Tax Code, is amended to read
1-14 as follows:
1-15 (b) The revenue remaining after the deductions for the
1-16 purposes provided by Section 154.602 of this code and allocation
1-17 under Subsection (a) of this section is allocated as follows:
1-18 (1) $12.50 per thousand cigarettes to be spent only
1-19 for elementary and secondary public school purposes; and
1-20 (2) the remainder to the general revenue fund.
1-21 SECTION 3. Section 155.021(b), Tax Code, is amended to read
1-22 as follows:
1-23 (b) The tax rates are:
1-24 (1) 1.125 cents [one cent] per 10 or fraction of 10 on
2-1 cigars weighing three pounds or less per thousand;
2-2 (2) $8.4375 [$7.50] per thousand on cigars that:
2-3 (A) weigh more than three pounds per thousand;
2-4 and
2-5 (B) sell at factory list price, exclusive of any
2-6 trade discount, special discount, or deal, for 3.3 cents or less
2-7 each;
2-8 (3) $12.375 [$11] per thousand on cigars that:
2-9 (A) weigh more than three pounds per thousand;
2-10 (B) sell at factory list price, exclusive of any
2-11 trade discount, special discount, or deal, for more than 3.3 cents
2-12 each; and
2-13 (C) contain no substantial amount of nontobacco
2-14 ingredients; and
2-15 (4) $16.875 [$15] per thousand on cigars that:
2-16 (A) weigh more than three pounds per thousand;
2-17 (B) sell at factory list price, exclusive of any
2-18 trade discount, special discount, or deal, for more than 3.3 cents
2-19 each; and
2-20 (C) contain a substantial amount of nontobacco
2-21 ingredients.
2-22 SECTION 4. Section 155.0211(b), Tax Code, is amended to read
2-23 as follows:
2-24 (b) The tax rate for tobacco products other than cigars is
2-25 39.615 [35.213] percent of the manufacturer's list price, exclusive
2-26 of any trade discount, special discount, or deal.
2-27 SECTION 5. Section 155.241, Tax Code, is amended to read as
3-1 follows:
3-2 Sec. 155.241. ALLOCATION OF TAX. Revenue collected under
3-3 this chapter shall be allocated as follows:
3-4 (1) revenue from any increase in the rate of a tax
3-5 under this chapter effective on or after September 1, 1997, to be
3-6 spent only for elementary and secondary public school purposes; and
3-7 (2) the remainder [deposited] to the credit of the
3-8 general revenue fund.
3-9 SECTION 6. (a) This Act takes effect September 1, 1997.
3-10 (b) The change in law made by this Act does not affect taxes
3-11 imposed before the effective date of this Act, and the law in
3-12 effect before the effective date of this Act is continued in effect
3-13 for purposes of the liability for and collection of those taxes.
3-14 SECTION 7. The importance of this legislation and the
3-15 crowded condition of the calendars in both houses create an
3-16 emergency and an imperative public necessity that the
3-17 constitutional rule requiring bills to be read on three several
3-18 days in each house be suspended, and this rule is hereby suspended.