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A BILL TO BE ENTITLED
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AN ACT
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relating to an increase in the cigarette tax and the enforcement and |
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uses of the tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 154.021(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) $123 [$70.50] per thousand on cigarettes weighing |
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three pounds or less per thousand; and |
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(2) the rate provided by Subdivision (1) plus $2.10 |
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per thousand on cigarettes weighing more than three pounds per |
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thousand. |
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SECTION 2. Section 154.053(a), Tax Code, is amended to read |
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as follows: |
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(a) The comptroller shall design and have printed or |
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manufactured cigarette tax stamps. If the comptroller determines |
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that it is necessary for the best enforcement of this chapter, the |
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comptroller shall [may] change the design, color, [or] |
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denomination, technology, or other feature of the stamps. The |
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comptroller shall determine the quantity and the size, design, |
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color, [or] denomination, technology, or other feature [and
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quantity] of stamps manufactured. The stamps shall be manufactured |
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so that they may be easily and securely attached to an individual |
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package of cigarettes. The comptroller may designate the method of |
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identification for the stamps and shall award the contract for the |
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printing or manufacturing to the person submitting the bid that |
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will give the best protection to the state in enforcing this |
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chapter. |
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SECTION 3. Section 154.054(a), Tax Code, is amended to read |
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as follows: |
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(a) The comptroller may redeem unused cigarette tax stamps |
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that were lawfully issued before a change in the stamps' design, |
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color, [or] denomination, technology, or other feature [change]. |
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SECTION 4. Sections 154.058(a) and (d), Tax Code, are |
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amended to read as follows: |
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(a) On the effective date of a tax increase, each |
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distributor, wholesaler, and retailer who has 2,000 or more |
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cigarettes in packages stamped with stamps of an old design, color, |
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[or] denomination, technology, or other feature shall immediately |
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inventory the packages and any unused stamps of an old design, |
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color, [or] denomination, technology, or other feature and file a |
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report of the inventory with the comptroller. |
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(d) This section does not affect the date payment is due for |
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stamps of an old design, color, [or] denomination, technology, or |
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other feature if payment has not been made for the stamps on or |
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before the effective date of the tax increase. |
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SECTION 5. Section 154.6035, Tax Code, is amended to read as |
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follows: |
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Sec. 154.6035. ALLOCATION OF CERTAIN REVENUE TO PROPERTY |
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TAX RELIEF AND GENERAL REVENUE FUNDS [FUND]. (a) Notwithstanding |
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Section 154.603, all proceeds from the collection of taxes imposed |
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by this chapter attributable to the portion of the tax rate in |
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excess of $20.50 per thousand on cigarettes, but not exceeding |
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$70.50 per thousand, regardless of weight, shall be deposited to |
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the credit of the property tax relief fund under Section 403.109, |
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Government Code. |
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(b) Notwithstanding Section 154.603, all proceeds from the |
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collection of taxes attributable to the portion of the tax rate in |
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excess of $70.50 per thousand on cigarettes, regardless of weight, |
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shall be deposited to the credit of the general revenue fund. Of |
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the amount deposited as provided by this subsection, $2.50 per |
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thousand on cigarettes shall be deposited to the credit of an |
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account in the general revenue fund for the exclusive use of the |
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Office of Smoking and Health of the Department of State Health |
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Services. |
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SECTION 6. This Act takes effect September 1, 2011. |