78S40431 CBH-D
By: Howard H.B. No. 55
A BILL TO BE ENTITLED
AN ACT
relating to the imposition of a tax on certain beverages and snack
foods and to the use of the revenue from the tax for public
education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 164 to read as follows:
CHAPTER 164. TAX ON DISCRETIONARY FOOD AND DRINK ITEMS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 164.001. DEFINITIONS. In this chapter:
(1) "Ale," "beer," "malt liquor," and "wine" have the
meanings assigned by Section 1.04, Alcoholic Beverage Code.
(2) "Snack food" means any item that is ordinarily
sold for consumption without further preparation and that is not
generally considered a major component of a well-balanced meal.
The term includes:
(A) bakery items, including pastries, donuts,
cakes, tortes, pies, tarts, bars, and cookies;
(B) candy;
(C) chips, including chips made from potatoes,
flour, or corn;
(D) popcorn;
(E) pretzels; and
(F) roasted nuts.
(3) "Soft drink" means a nonalcoholic beverage that
contains natural or artificial sweeteners. The term does not
include a beverage that:
(A) contains:
(i) milk or milk products;
(ii) soy, rice, or similar milk
substitutes; or
(iii) more than 50 percent of vegetable or
fruit juice by volume;
(B) is intended by the manufacturer for
consumption by an infant and that is commonly referred to as "infant
formula"; or
(C) is intended by the manufacturer for use for
weight reduction.
[Sections 164.002-164.050 reserved for expansion]
SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
Sec. 164.051. TAX IMPOSED. (a) A tax is imposed on each
sale at retail of ale, malt liquor, beer, soft drinks, snack food,
or wine.
(b) The tax rate is one percent of the sales price of the
ale, malt liquor, beer, soft drinks, snack food, or wine.
(c) The tax imposed under this chapter is in addition to any
other tax imposed by state law.
Sec. 164.052. EXCEPTIONS TO APPLICATION OF TAX. The tax
imposed under this chapter does not apply to:
(1) food or a beverage sold in or by a restaurant,
lunch counter, cafeteria, hotel, or other business for consumption
on the premises of the business; or
(2) a beverage if the receipts from the sale of the
beverage are taxable under Chapter 183.
Sec. 164.053. APPLICATION OF OTHER LAW. Except as
otherwise provided by this chapter, the tax imposed under this
chapter is administered, imposed, collected, and enforced in the
same manner as the tax under Chapter 151 is administered, imposed,
collected, and enforced.
[Sections 164.054-164.100 reserved for expansion]
SUBCHAPTER C. ALLOCATION OF TAX
Sec. 164.101. ALLOCATION OF TAX. The revenue from the tax
imposed under this chapter shall be deposited to the credit of the
foundation school fund.
SECTION 2. This Act takes effect September 1, 2004.