78R6623 DAK-D
By: Pena H.B. No. 2022
A BILL TO BE ENTITLED
AN ACT
relating to the imposition of a tax on rolling paper intended to be
used to smoke tobacco; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 165 to read as follows:
CHAPTER 165. ROLLING PAPERS
Sec. 165.001. SALES TAX. (a) A tax is imposed on each sale
at retail of a pack, box, or other container of rolling papers
intended to be used to smoke a tobacco product.
(b) The tax rate is $1.00 for each pack, box, or container.
(c) The tax imposed under this chapter is in addition to the
tax imposed under Chapter 151. The tax imposed by this chapter does
not apply to a sale unless the tax imposed under Chapter 151 applies
to the sale.
Sec. 165.002. APPLICATION OF OTHER PROVISIONS OF CODE. (a)
Except as provided by this chapter:
(1) the tax imposed by this chapter is administered,
imposed, collected, and enforced in the same manner as the tax under
Chapter 151 is administered, imposed, collected, and enforced; and
(2) the provisions of Chapter 151 applicable to the
sales tax imposed under Subchapter C, Chapter 151, apply to the tax
imposed by this chapter.
(b) A change in the law relating to the taxation of the sale
of rolling papers intended to be used to smoke a tobacco product
under Chapter 151 also applies to the tax imposed by this chapter.
Sec. 165.003. ALLOCATION OF REVENUE. The revenue from
taxes imposed by this chapter, other than penalties and interest,
is allocated as follows:
(1) 50 percent may be appropriated only to the Texas
Commission on Alcohol and Drug Abuse to accomplish the purposes of
that commission; and
(2) 50 percent shall be deposited to the credit of the
general revenue fund.
SECTION 2. (a) This Act takes effect July 1, 2003, if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution,
for an effective date before the 91st day after the last day of the
legislative session.
(b) This Act takes effect October 1, 2003, if it does not
receive a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution,
for an effective date before the 91st day after the last day of the
legislative session.