81R9799 KLA-D
By: Jackson H.B. No. 3185
A BILL TO BE ENTITLED
AN ACT
relating to increasing the tax rates imposed on cigars to fund
additional property tax relief.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 155.021(b), Tax Code, is amended to read
as follows:
(b) The tax rates are:
(1) $70.50 per thousand [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) $70.50 [$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 2. 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) the amount of the proceeds from the collection of
taxes imposed by Section 155.021 on cigars weighing three pounds or
less per thousand that exceeds the amount of the proceeds from those
taxes that would be collected if the taxes were imposed under
Section 155.021(b)(1) at a tax rate of one cent per 10 or fraction
of 10;
(2) the amount of the proceeds from the collection of
taxes imposed by Section 155.021 on cigars described by Section
155.021(b)(4) that exceeds the amount of the proceeds from those
taxes that would be collected if the taxes were imposed under
Section 155.021(b)(4) at a tax rate of $15 per thousand; and
(3) all proceeds from the collection of taxes imposed
by Section 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[, shall
be deposited to the credit of the property tax relief fund under
Section 403.109, Government Code].
SECTION 3. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. 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 4. This Act takes effect September 1, 2009.