79S30516 KLA-D

By:  Hamric                                                       H.B. No. 5  

A BILL TO BE ENTITLED

AN ACT

relating to increases in the taxes on cigarettes and other tobacco 

products.

        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)  $70.50 [$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 155.0211(b), Tax Code, is amended to 

read as follows:    

        (b)  The tax rate for tobacco products other than cigars is 

40 [35.213] percent of the manufacturer's list price, exclusive of 

any trade discount, special discount, or deal.

        SECTION 3.  The changes in law made by this Act do not affect 

tax liability accruing before the effective date of this Act.  That 

liability continues in effect as if this Act had not been enacted, 

and the former law is continued in effect for the collection of 

taxes due and for civil and criminal enforcement of the liability 

for those taxes.

        SECTION 4.  This Act takes effect September 1, 2006.