82R18716 ALL-D
By: Ritter H.B. No. 2599
Substitute the following for H.B. No. 2599:
By: Hilderbran C.S.H.B. No. 2599
A BILL TO BE ENTITLED
AN ACT
relating to the definition of chewing tobacco for purposes of the
taxes imposed on cigars and other tobacco products and to the rate
of the tax imposed on chewing tobacco.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 155.001, Tax Code, is amended by adding
Subdivision (1-a) and amending Subdivision (15) to read as follows:
(1-a) "Chewing tobacco" means any leaf tobacco that is
not snuff and that is:
(A) suitable for chewing, including Twist, plug,
and scrap; or
(B) not intended to be smoked.
(15) "Tobacco product" means:
(A) a cigar;
(B) smoking tobacco, including granulated,
plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable
for smoking in a pipe or as a cigarette;
(C) chewing tobacco[, including Cavendish,
Twist, plug, scrap, and any kind of tobacco suitable for chewing];
(D) snuff or other preparations of pulverized
tobacco; or
(E) an article or product that is made of tobacco
or a tobacco substitute and that is not a cigarette.
SECTION 2. Sections 155.0211(b), (b-1), and (b-2), Tax
Code, are amended to read as follows:
(b) Except as provided by Subsection (c), the tax rate for
each can or package of:
(1) a tobacco product other than cigars and chewing
tobacco is $1.22 per ounce and a proportionate rate on all
fractional parts of an ounce; and
(2) a tobacco product other than cigars that is
chewing tobacco is 80 cents per ounce and a proportionate rate on
all fractional parts of an ounce.
(b-1) Notwithstanding Subsection (b) and except as provided
by Subsection (c), for the state fiscal year beginning September 1,
2012, the tax rate for each can or package of a tobacco product
other than cigars and chewing tobacco is $1.19 per ounce and a
proportionate rate on all fractional parts of an ounce. This
subsection expires December 1, 2013.
(b-2) Notwithstanding Subsection (b) and except as provided
by Subsection (c), for the state fiscal year beginning September 1,
2011, the tax rate for each can or package of a tobacco product
other than cigars and chewing tobacco is $1.16 per ounce and a
proportionate rate on all fractional parts of an ounce. This
subsection expires December 1, 2012.
SECTION 3. Section 155.0211(b-3), Tax Code, is repealed.
SECTION 4. 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 5. This Act takes effect September 1, 2011.