BILL ANALYSIS
Senate Research Center C.S.S.B. 269
79R8088 DAK-D By: Madla
Business & Commerce
Committee Report (Substituted)
AUTHOR'S/SPONSOR'S STATEMENT OF INTENT
The Texas Alcoholic Beverage Commission (TABC) collects administrative fees and taxes on certain alcoholic beverages and cigarettes entering the state from foreign countries for personal use. As an example, the total tax and administrative fee on a fifth of distilled spirits is $0.98. People coming across the Texas-Mexico border will pay a dollar and not want to keep the two pennies in change. Since the TABC is a government agency, it cannot keep the change that people try to leave behind. This places a burden on the TABC employees and increases the wait time at border crossings.
C.S.S.B. 269 allows the TABC to round to the nearest quarter of a dollar the tax and fee on alcohol and the tax on cigarettes collected at the border.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 107.07, Alcoholic Beverage Code, by adding Subsection (g), to authorize the Texas Alcoholic Beverage Commission, when computing the total amount of taxes and administrative fees to be collected on alcoholic beverages imported by a person into the state for personal use, to round the amount to the nearest quarter of a dollar.
SECTION 2. Amends Section 154.024(b), Tax Code, to authorize the Texas Alcoholic Beverage Commission, when computing taxes to be collected on cigarettes imported into this state, to round the total amount to the nearest quarter of a dollar.
SECTION 3. Makes application of this Act prospective.
SECTION 4. Effective date: September 1, 2005.