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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 to fund the child |
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health plan program. |
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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) $120.50 [$70.50] per thousand on cigarettes |
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weighing 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 154.6035, 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 FUND AND CHILDREN'S HEALTH INSURANCE PROGRAM. (a) |
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Notwithstanding Section 154.603, all proceeds from the collection |
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of taxes imposed by this chapter attributable to the portion of the |
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tax rate in excess of $20.50 per thousand on cigarettes, but not |
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exceeding $70.50 per thousand, regardless of weight, shall be |
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deposited to the credit of the property tax relief fund under |
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Section 403.109, 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 children's health insurance |
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program account in the general revenue fund and may be appropriated |
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only to the Health and Human Services Commission for the child |
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health plan program under Chapter 62, Health and Safety Code. |
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SECTION 3. This Act takes effect September 1, 2011. |