|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to increasing or decreasing at the rate of inflation the |
|
rates of taxes imposed on cigarettes, cigars, and other tobacco |
|
products. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 154.021, Tax Code, is amended by |
|
amending Subsection (b) and adding Subsections (c), (d), and (e) to |
|
read as follows: |
|
(b) Subject to Subsection (c), the [The] tax rates are: |
|
(1) $70.50 per thousand on cigarettes weighing three |
|
pounds or less per thousand; and |
|
(2) the rate provided by Subdivision (1) plus $2.10 |
|
per thousand on cigarettes weighing more than three pounds per |
|
thousand. |
|
(c) In this subsection, "consumer price index" means the |
|
annual revised Consumer Price Index for All Urban Consumers |
|
(CPI-U), U.S. City Average, seasonally adjusted, as published by |
|
the federal Bureau of Labor Statistics of the United States |
|
Department of Labor, or its successor in function. On September 1 |
|
of each year, the tax rates prescribed by this section that were in |
|
effect on August 31 of that year are each increased or decreased by |
|
a percentage equal to the percentage change in the most recent |
|
consumer price index, and the resulting amount is rounded to the |
|
nearest cent, except that: |
|
(1) if that percentage increase or decrease in the |
|
most recent consumer price index is more than three percent, the tax |
|
rate is increased or decreased, as applicable, by a maximum of three |
|
percent, and the resulting amount is rounded to the nearest cent; |
|
and |
|
(2) if the computation otherwise required by this |
|
subsection would result in a tax rate that is less than the rate |
|
prescribed by Subsection (b), the tax rate is the rate prescribed by |
|
that subsection. |
|
(d) Not later than July 31 of each year, the comptroller |
|
shall: |
|
(1) compute in accordance with Subsection (c) the tax |
|
rates that will apply in the succeeding state fiscal year; and |
|
(2) publish the computed rates on the comptroller's |
|
Internet website. |
|
(e) The comptroller may adopt any rules necessary for the |
|
implementation of Subsections (c) and (d). |
|
SECTION 2. Section 155.021(b), Tax Code, is amended to read |
|
as follows: |
|
(b) Subject to Section 155.0212, the [The] tax rates are: |
|
(1) one cent per 10 or fraction of 10 on cigars |
|
weighing three pounds or less per thousand; |
|
(2) $7.50 per thousand on cigars that: |
|
(A) weigh more than three pounds per thousand; |
|
and |
|
(B) sell at factory list price, exclusive of any |
|
trade discount, special discount, or deal, for 3.3 cents or less |
|
each; |
|
(3) $11 per thousand on cigars that: |
|
(A) weigh more than three pounds per thousand; |
|
(B) sell at factory list price, exclusive of any |
|
trade discount, special discount, or deal, for more than 3.3 cents |
|
each; and |
|
(C) contain no substantial amount of nontobacco |
|
ingredients; and |
|
(4) $15 per thousand on cigars that: |
|
(A) weigh more than three pounds per thousand; |
|
(B) sell at factory list price, exclusive of any |
|
trade discount, special discount, or deal, for more than 3.3 cents |
|
each; and |
|
(C) contain a substantial amount of nontobacco |
|
ingredients. |
|
SECTION 3. Section 155.0211(b), Tax Code, is amended to |
|
read as follows: |
|
(b) Subject to Section 155.0212, and except [Except] as |
|
provided by Subsection (c), the tax rate for each can or package of |
|
a tobacco product other than cigars is $1.22 per ounce and a |
|
proportionate rate on all fractional parts of an ounce. |
|
SECTION 4. Subchapter B, Chapter 155, Tax Code, is amended |
|
by adding Section 155.0212 to read as follows: |
|
Sec. 155.0212. ANNUAL ADJUSTMENT OF RATES. (a) In this |
|
section, "consumer price index" means the annual revised Consumer |
|
Price Index for All Urban Consumers (CPI-U), U.S. City Average, |
|
seasonally adjusted, as published by the federal Bureau of Labor |
|
Statistics of the United States Department of Labor, or its |
|
successor in function. |
|
(b) On September 1 of each year, the tax rates prescribed by |
|
Sections 155.021 and 155.0211 that were in effect on August 31 of |
|
that year are each increased or decreased by a percentage equal to |
|
the percentage change in the most recent consumer price index, and |
|
the resulting amount is rounded to the nearest cent, except that: |
|
(1) if that percentage increase or decrease in the |
|
most recent consumer price index is more than three percent, the tax |
|
rate is increased or decreased, as applicable, by a maximum of three |
|
percent, and the resulting amount is rounded to the nearest cent; |
|
and |
|
(2) if the computation otherwise required by this |
|
subsection would result in a tax rate that is less than the rate |
|
prescribed by Section 155.021 or 155.0211, as applicable, the tax |
|
rate is the rate prescribed by the applicable section. |
|
(c) Not later than July 31 of each year, the comptroller |
|
shall: |
|
(1) compute in accordance with Subsection (b) the tax |
|
rates that will apply in the succeeding state fiscal year; and |
|
(2) publish the computed rates on the comptroller's |
|
Internet website. |
|
(d) The comptroller may adopt any rules necessary for the |
|
implementation of Subsections (b) and (c). |
|
SECTION 5. (a) As soon as possible after the effective date |
|
of this Act, the comptroller of public accounts shall: |
|
(1) make the initial computations and determine the |
|
tax rates that apply beginning September 1, 2013, in accordance |
|
with: |
|
(A) Section 154.021, Tax Code, as amended by this |
|
Act; and |
|
(B) Section 155.0212, Tax Code, as added by this |
|
Act, except as provided by Subsection (b) of this section; and |
|
(2) publish on the comptroller's Internet website the |
|
tax rates computed under Subdivision (1) of this subsection that |
|
will apply beginning September 1, 2013. |
|
(b) Not later than July 31, 2014, the comptroller of public |
|
accounts shall make the initial computation under Section 155.0212, |
|
Tax Code, as added by this Act, with respect to the tax rate |
|
described by Section 155.0211(b), Tax Code, as amended by this Act, |
|
and determine the tax rate that will apply under that section |
|
beginning September 1, 2014. |
|
SECTION 6. The changes in law made by this Act apply only to |
|
a tax imposed on or after September 1, 2013. A tax imposed before |
|
that date is governed by the law in effect on the date the tax was |
|
imposed, and the former law is continued in effect for that purpose. |
|
SECTION 7. The changes in law made by this Act do not affect |
|
tax liability accruing before September 1, 2013. That liability |
|
continues in effect as if this Act had not been enacted, and the |
|
former law is continued in effect for the collection of taxes due |
|
and for civil and criminal enforcement of the liability for those |
|
taxes. |
|
SECTION 8. This Act takes effect immediately if it receives |
|
a vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for immediate effect, this |
|
Act takes effect on the 91st day after the last day of the |
|
legislative session. |