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A BILL TO BE ENTITLED
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AN ACT
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relating to the rate of the cigarette tax and the allocation of |
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certain revenue from that tax to the foundation school fund; |
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increasing the rate of a 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) $82.50 [$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 FOUNDATION SCHOOL 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, regardless of weight, |
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but not exceeding $70.50 per thousand on cigarettes weighing three |
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pounds or less per thousand or $72.60 per thousand on cigarettes |
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weighing more than three pounds per thousand, 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 imposed by this chapter attributable to the |
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portion of the tax rate in excess of $70.50 per thousand on |
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cigarettes weighing three pounds or less per thousand, or |
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attributable to the portion of the tax rate in excess of $72.60 per |
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thousand on cigarettes weighing more than three pounds per |
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thousand, shall be deposited to the credit of the foundation school |
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fund. |
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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, 2019. |