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78R347 DAK-D
By: Wolens H.B. No. 53
A BILL TO BE ENTITLED
AN ACT
relating to an increase in the cigarette tax and the distribution of
that increase to counties and municipalities for police, sheriff,
and fire services.
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) $45.50 [$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 this section] of the first $20.50 of tax
received per 1,000 cigarettes for cigarettes weighing three pounds
or less per thousand and the first $22.60 per 1,000 cigarettes of
the tax received for cigarettes weighing more than three pounds per
thousand 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 to the credit of the
county and municipal cigarette tax fund created under Section
154.604.
SECTION 3. Subchapter J, Chapter 154, Tax Code, is amended
by adding Section 154.604 to read as follows:
Sec. 154.604. COUNTY AND MUNICIPAL CIGARETTE TAX FUND. (a)
The county and municipal cigarette tax fund is created as a trust
fund with the comptroller and shall be administered by the
comptroller as a trustee on behalf the counties and municipalities
in this state.
(b) The comptroller shall manage and distribute the money
allocated to the county and municipal cigarette tax fund in the
manner provided by this section.
(c) Before a county may receive money from the fund, the
commissioners court of the county must first submit to the
comptroller a written certification that the county agrees to spend
the money received from the fund only for the following purposes:
(1) services provided by the sheriff's department in
the county; and
(2) fire protection services provided by the county.
(d) Before a municipality may receive money from the fund,
the governing body of the municipality must first submit to the
comptroller a written certification that the municipality agrees to
spend the money received from the fund only for the following
purposes:
(1) police services provided by the municipality; and
(2) fire protection services provided by the
municipality.
(e) The comptroller shall distribute money from the fund to
those counties that have submitted the certification required by
Subsection (c). The amount each county receives equals the product
of:
(1) an amount equal to half of the amount of money in
the fund; and
(2) a fraction of which the numerator is the
population of the county and the denominator is the population of
all the counties that have submitted the certification required
under Subsection (c) to the comptroller.
(f) The comptroller shall distribute money from the fund to
those municipalities that have submitted the certification
required by Subsection (d). The amount each municipality receives
equals the product of:
(1) an amount equal to half of the amount of money in
the fund; and
(2) a fraction of which the numerator is the
population of the municipality and the denominator is the
population of all the municipalities that have submitted the
certification required under Subsection (d) to the comptroller.
(g) The comptroller shall provide a form for certification
under Subsection (c) to each county and under Subsection (d) to each
municipality in the state. The comptroller shall regularly update
the comptroller's records relating to the counties and
municipalities that have submitted certifications.
(h) The comptroller shall distribute the money in the fund
to qualified counties and municipalities quarterly.
(i) Interest earned on the fund shall be credited to the
fund.
SECTION 4. (a) This Act takes effect October 1, 2003.
(b) The comptroller shall make the first distribution of
money from the county and municipal cigarette tax fund under
Section 154.604, Tax Code, as added by this Act, on or after January
1, 2004.