By: Deshotel H.B. No. 33
A BILL TO BE ENTITLED
AN ACT
relating to an increase in the cigarette tax and to the use of that
increase to purchase textbooks.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 154.021(b), Tax Code, is amended to read
as follows:
(b) The tax rates are: (1) $33.00 [$20.50] per thousand on
cigarettes weighing three pounds or less per thousand; and
(2) the rate provided by Subdivision (1) plus $2.10 per thousand
on cigarettes weighing more than three pounds per thousand.
SECTION 2. Section 154.603, Tax Code, is amended to read as
follows: Sec. 154.603. DISPOSITION OF REVENUE. (a) After the
deductions for the purposes provided by Section 154.602 [of this
code], the revenue remaining of the first $2 of tax received per
1,000 cigarettes for cigarettes weighing three pounds or less per
thousand and the first $4.10 per 1,000 cigarettes of the tax
received for cigarettes weighing more than three pounds per
thousand is allocated:
(1) 18.75 percent to the foundation school fund; and
(2) 81.25 percent to the general revenue fund.
(b) The revenue remaining after the deductions for the
purposes provided by Section 154.602 [of this code] and allocation
under Subsection (a) of the next $18.50 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the next $18.50 per 1,000 cigarettes of the tax
received for cigarettes weighing more than three pounds per
thousand [this section] is allocated to the general revenue fund.
(c) The revenue remaining after the deductions for the
purposes provided by Section 154.602 and allocation under
Subsections (a) and (b) shall be deposited as follows:
(1) shall be deposited to the credit of the foundation
school fund and may be appropriated only for the purpose of buying
textbooks.
SECTION 3. This Act takes effect November 1, 2003.