Texas House Bill HB3339

Texas 2009 - 81st Regular

Caption

Relating to the tax on cigarettes.

Impact

The modifications proposed in HB3339 will have significant implications for state revenue collection related to cigarette sales. By structuring the tax according to weight and implementing a supplemental payment mechanism, the bill aims to ensure that tax revenues reflect market values more accurately. Additionally, the allocation of revenues is set to be adjusted, directing certain excess taxes toward property tax relief funds, which could have a broader impact on fiscal policy and taxpayer benefits in Texas.

Summary

House Bill 3339 primarily focuses on amendments to the tax on cigarettes in Texas. The bill aims to modify existing codes to address how taxes are imposed and managed on cigarette sales, specifically updating tax rates and procedures for stamp attribution. It sets new minimum tax rates based on the weight of cigarettes and establishes supplemental payment obligations for manufacturers when the tax imposed exceeds the stamp value. This legislation is expected to enhance compliance processes for distributors and manufacturers in the cigarette market.

Contention

While the bill promotes more structured tax regulations, it may also be met with resistance from stakeholders in the cigarette manufacturing and distribution sectors. Concerns may arise regarding the increased financial burdens and operational complexities imposed by the new tax structures, especially among smaller manufacturers who may find compliance challenging. Furthermore, discussions surrounding the fairness of tax allocation to property tax relief may prompt scrutiny from legislators who advocate for alternative uses of tax revenues.