By:  Hamric (Senate Sponsor - Armbrister)                         H.B. No. 5  
	(In the Senate - Received from the House April 27, 2006; 
April 27, 2006, read first time and referred to Committee on 
Finance; May 7, 2006, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 9, Nays 5; May 7, 2006, sent 
to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 5                                      By:  Ogden


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 January 1, 2007.                             



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