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A BILL TO BE ENTITLED
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AN ACT
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relating to increasing the tax rates imposed on cigars to fund |
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additional property tax relief. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 155.021(b), Tax Code, is amended to read |
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as follows: |
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(b) The tax rates are: |
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(1) $70.50 per thousand [one cent per 10 or fraction of
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10] on cigars weighing three pounds or less per thousand; |
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(2) $7.50 per thousand on cigars that: |
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(A) weigh more than three pounds per thousand; |
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and |
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(B) sell at factory list price, exclusive of any |
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trade discount, special discount, or deal, for 3.3 cents or less |
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each; |
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(3) $11 per thousand on cigars that: |
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(A) weigh more than three pounds per thousand; |
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(B) sell at factory list price, exclusive of any |
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trade discount, special discount, or deal, for more than 3.3 cents |
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each; and |
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(C) contain no substantial amount of nontobacco |
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ingredients; and |
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(4) $70.50 [$15] per thousand on cigars that: |
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(A) weigh more than three pounds per thousand; |
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(B) sell at factory list price, exclusive of any |
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trade discount, special discount, or deal, for more than 3.3 cents |
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each; and |
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(C) contain a substantial amount of nontobacco |
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ingredients. |
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SECTION 2. 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) the amount of the proceeds from the collection of |
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taxes imposed by Section 155.021 on cigars weighing three pounds or |
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less per thousand that exceeds the amount of the proceeds from those |
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taxes that would be collected if the taxes were imposed under |
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Section 155.021(b)(1) at a tax rate of one cent per 10 or fraction |
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of 10; |
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(2) the amount of the proceeds from the collection of |
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taxes imposed by Section 155.021 on cigars described by Section |
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155.021(b)(4) that exceeds the amount of the proceeds from those |
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taxes that would be collected if the taxes were imposed under |
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Section 155.021(b)(4) at a tax rate of $15 per thousand; and |
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(3) all proceeds from the collection of taxes imposed |
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by Section 155.0211 attributable to the portion of the tax rate in |
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excess of 35.213 percent of the manufacturer's list price, |
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exclusive of any trade discount, special discount, or deal[, shall
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be deposited to the credit of the property tax relief fund under
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Section 403.109, Government Code]. |
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SECTION 3. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 4. This Act takes effect September 1, 2009. |