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A BILL TO BE ENTITLED
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AN ACT
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relating to the tax imposed on certain tobacco products. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 155.001, Tax Code, is amended by adding |
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Subdivision (14-a) to read as follows: |
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(14-a) "Snuff" means any finely cut, ground, or |
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powdered tobacco that is not intended to be smoked. |
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SECTION 2. Section 155.0211, Tax Code, is amended by |
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amending Subsection (b) and adding Subsections (c), (d), and (e) to |
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read as follows: |
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(b) The tax rate for tobacco products other than cigars and |
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snuff is 40 percent of the manufacturer's list price, exclusive of |
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any trade discount, special discount, or deal. |
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(c) Except as provided by Subsection (d), the tax rate for |
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each can or package of snuff is one dollar per ounce and a |
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proportionate tax rate on all fractional parts of an ounce. |
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(d) The tax imposed on a can or package of snuff that weighs |
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less than 1.2 ounces is equal to the amount of the tax imposed at the |
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rate prescribed by Subsection (c) on a can or package of snuff that |
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weighs 1.2 ounces. |
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(e) The computation of the tax on snuff under Subsection (c) |
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and the applicability of Subsection (d) shall be based on the net |
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weight as listed by the manufacturer. The total tax to be imposed |
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on a unit that contains multiple individual cans or packages is the |
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sum of the taxes imposed by Subsections (c) and (d) on each |
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individual can or package intended for sale or distribution at |
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retail. |
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SECTION 3. Section 155.101, Tax Code, is amended to read as |
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follows: |
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Sec. 155.101. RECORD OF PURCHASE OR RECEIPT. Each |
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distributor, wholesaler, bonded agent, and export warehouse shall |
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keep records at each place of business of all tobacco products |
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purchased or received. Each retailer shall keep records at a single |
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location, which the retailer shall designate as its principal place |
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of business in the state, of all tobacco products purchased and |
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received. These records must include the following, except that |
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Subdivision (7) applies to distributors only and Subdivision (8) |
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applies only to the purchase or receipt of snuff: |
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(1) the name and address of the shipper or carrier and |
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the mode of transportation; |
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(2) all shipping records or copies of records, |
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including invoices, bills of lading, waybills, freight bills, and |
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express receipts; |
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(3) the date and the name of the place of origin of the |
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tobacco product shipment; |
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(4) the date and the name of the place of arrival of |
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the tobacco product shipment; |
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(5) a statement of the number, kind, and price paid for |
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the tobacco products; |
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(6) the name, address, permit number, and tax |
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identification number of the seller; |
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(7) the manufacturer's list price for the tobacco |
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products; [and] |
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(8) the net weight as listed by the manufacturer for |
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each unit; and |
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(9) any other information required by rules of the |
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comptroller. |
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SECTION 4. Section 155.102, Tax Code, is amended by adding |
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Subsection (c) to read as follows: |
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(c) In addition to the information required under |
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Subsection (b), the records for each sale, distribution, exchange, |
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or use of snuff must show the net weight as listed by the |
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manufacturer for each unit. |
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SECTION 5. Section 155.103, Tax Code, is amended by adding |
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Subsection (a-1) and amending Subsection (b) to read as follows: |
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(a-1) In addition to the information required under |
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Subsection (a), the records for each sale of snuff must show the net |
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weight as listed by the manufacturer for each unit. |
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(b) A manufacturer who sells tobacco products to a permit |
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holder in this state shall file with the comptroller, on or before |
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the last day of each month, a report showing the information |
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required to be listed by Subsections [in Subsection] (a) and (a-1), |
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if applicable, for the previous month. |
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SECTION 6. Section 155.111, Tax Code, is amended by adding |
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Subsection (b-1) to read as follows: |
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(b-1) In addition to the information required under |
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Subsection (b), for snuff purchased, received, or acquired, the |
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report must show the net weight as listed by the manufacturer for |
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each unit. |
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SECTION 7. Section 155.2415, Tax Code, is amended to read as |
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follows: |
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Sec. 155.2415. ALLOCATION OF CERTAIN REVENUE TO PROPERTY |
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TAX RELIEF FUND. Notwithstanding Section 155.241, the following |
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shall be deposited to the credit of the property tax relief fund |
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under Section 403.109, Government Code: |
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(1) all proceeds from the collection of taxes imposed |
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by Section 155.0211(b) [155.0211] attributable to the portion of |
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the tax rate in excess of 35.213 percent of the manufacturer's list |
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price, exclusive of any trade discount, special discount, or deal; |
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and |
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(2) the amount of the proceeds from the collection of |
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taxes imposed by Sections 155.0211(c) and (d) that is equal to the |
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amount that, if the taxes imposed by Section 155.0211(b) were |
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imposed on snuff, would be attributable to the portion of the tax |
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rate under Section 155.0211(b) in excess of 35.213 percent of the |
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manufacturer's list price, exclusive of any trade discount, special |
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discount, or deal [, shall be deposited to the credit of the
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property tax relief fund under Section 403.109, Government Code]. |
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SECTION 8. The changes in law made by this Act do not affect |
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taxes imposed before the effective date of this Act, and the law in |
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effect before the effective date of this Act is continued in effect |
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for purposes of the liability for and collection of those taxes. |
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SECTION 9. This Act takes effect September 1, 2009. |