SRC-ARR H.B. 3600 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 3600
76R6006 CBH-DBy: McClendon (West)
Finance
5/6/1999
Engrossed


DIGEST 

Current law allows a person to import one carton of cigarettes into this
state from a foreign country without paying any tax. The law subjects any
additional cartons to the cigarette tax at the rate of $0.41 per pack. The
state could earn additional revenue if all cigarettes brought into this
state from a foreign county were taxed. H.B. 3600 requires a person who
imports and personally transports 200 or fewer cigarettes into this state
from a foreign country to pay the cigarette tax for each pack of
cigarettes.  

PURPOSE

As proposed, H.B. 3600 requires a tax on small quantities of cigarettes
imported into this state from foreign country.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 154.024(a), Tax Code, to provide that a person
who imports and personally transports 200 or fewer cigarettes into this
state from another state is not required to pay the tax imposed by this
chapter if the person uses the cigarettes and does not sell them or offer
them for sale. Requires a person who imports and personally transports 200
or few cigarettes into this state from a foreign county to pay the tax
imposed by this chapter and have affixed on each individual package of
cigarettes a stamp to show payment of the tax.  

SECTION 2. Amends Section 154.511, Tax Code, as follows: 

Sec. 154.511. TRANSPORTATION OF CIGARETTES. Provides that a person, other
than a common carrier, commits an offense if the person knowingly
transports cigarettes without a stamp affixed to each individual package,
except as provided by Section 154.024(a).  

SECTION 3. Effective date: September 1, 1999.
           Makes application of this Act prospective.

SECTION 4. Emergency clause.