81R8147 KLA-D
By: Turner of Harris H.B. No. 2377
A BILL TO BE ENTITLED
AN ACT
relating to the tax imposed on certain tobacco products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 155.001, Tax Code, is amended by adding
Subdivision (14-a) to read as follows:
(14-a) "Snuff" means any finely cut, ground, or
powdered tobacco that is not intended to be smoked.
SECTION 2. Section 155.0211, Tax Code, is amended by
amending Subsection (b) and adding Subsections (c), (d), and (e) to
read as follows:
(b) The tax rate for tobacco products other than cigars and
snuff is 40 percent of the manufacturer's list price, exclusive of
any trade discount, special discount, or deal.
(c) Except as provided by Subsection (d), the tax rate for
each can or package of snuff is one dollar per ounce and a
proportionate tax rate on all fractional parts of an ounce.
(d) The tax imposed on a can or package of snuff that weighs
less than 1.2 ounces is equal to the amount of the tax imposed at the
rate prescribed by Subsection (c) on a can or package of snuff that
weighs 1.2 ounces.
(e) The computation of the tax on snuff under Subsection (c)
and the applicability of Subsection (d) shall be based on the net
weight as listed by the manufacturer. The total tax to be imposed
on a unit that contains multiple individual cans or packages is the
sum of the taxes imposed by Subsections (c) and (d) on each
individual can or package intended for sale or distribution at
retail.
SECTION 3. Section 155.101, Tax Code, is amended to read as
follows:
Sec. 155.101. RECORD OF PURCHASE OR RECEIPT. Each
distributor, wholesaler, bonded agent, and export warehouse shall
keep records at each place of business of all tobacco products
purchased or received. Each retailer shall keep records at a single
location, which the retailer shall designate as its principal place
of business in the state, of all tobacco products purchased and
received. These records must include the following, except that
Subdivision (7) applies to distributors only and Subdivision (8)
applies only to the purchase or receipt of snuff:
(1) the name and address of the shipper or carrier and
the mode of transportation;
(2) all shipping records or copies of records,
including invoices, bills of lading, waybills, freight bills, and
express receipts;
(3) the date and the name of the place of origin of the
tobacco product shipment;
(4) the date and the name of the place of arrival of
the tobacco product shipment;
(5) a statement of the number, kind, and price paid for
the tobacco products;
(6) the name, address, permit number, and tax
identification number of the seller;
(7) the manufacturer's list price for the tobacco
products; [and]
(8) the net weight as listed by the manufacturer for
each unit; and
(9) any other information required by rules of the
comptroller.
SECTION 4. Section 155.102, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) In addition to the information required under
Subsection (b), the records for each sale, distribution, exchange,
or use of snuff must show the net weight as listed by the
manufacturer for each unit.
SECTION 5. Section 155.103, Tax Code, is amended by adding
Subsection (a-1) and amending Subsection (b) to read as follows:
(a-1) In addition to the information required under
Subsection (a), the records for each sale of snuff must show the net
weight as listed by the manufacturer for each unit.
(b) A manufacturer who sells tobacco products to a permit
holder in this state shall file with the comptroller, on or before
the last day of each month, a report showing the information
required to be listed by Subsections [in Subsection] (a) and (a-1),
if applicable, for the previous month.
SECTION 6. Section 155.111, Tax Code, is amended by adding
Subsection (b-1) to read as follows:
(b-1) In addition to the information required under
Subsection (b), for snuff purchased, received, or acquired, the
report must show the net weight as listed by the manufacturer for
each unit.
SECTION 7. Section 155.2415, Tax Code, is amended to read as
follows:
Sec. 155.2415. ALLOCATION OF CERTAIN REVENUE TO PROPERTY
TAX RELIEF FUND. Notwithstanding Section 155.241, the following
shall be deposited to the credit of the property tax relief fund
under Section 403.109, Government Code:
(1) all proceeds from the collection of taxes imposed
by Section 155.0211(b) [155.0211] attributable to the portion of
the tax rate in excess of 35.213 percent of the manufacturer's list
price, exclusive of any trade discount, special discount, or deal;
and
(2) the amount of the proceeds from the collection of
taxes imposed by Sections 155.0211(c) and (d) that is equal to the
amount that, if the taxes imposed by Section 155.0211(b) were
imposed on snuff, would be attributable to the portion of the tax
rate under Section 155.0211(b) in excess of 35.213 percent of the
manufacturer's list price, exclusive of any trade discount, special
discount, or deal [, shall be deposited to the credit of the
property tax relief fund under Section 403.109, Government Code].
SECTION 8. The changes in law made by this Act do not affect
taxes imposed before the effective date of this Act, and the law in
effect before the effective date of this Act is continued in effect
for purposes of the liability for and collection of those taxes.
SECTION 9. This Act takes effect September 1, 2009.