Texas House Bill HB2599

Texas 2011 - 82nd Regular

• Out of House Committee: 4/14/11
• Introduced: 3/8/11
• Voted on by House: 5/5/11
• Refer: 3/15/11
• Report Pass: 4/7/11
• Engrossed: 5/5/11
• Refer: 5/5/11

Caption

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.

Impact

If enacted, HB 2599 would impact the tax rate applied to chewing tobacco products. The bill proposes a tax rate of 80 cents per ounce for chewing tobacco, while it retains a higher tax of $1.22 per ounce for other tobacco products, excluding cigars. This differential in taxation could create a shift in consumption patterns among tobacco users, possibly driving individuals towards lower-taxed chewing tobacco products. Furthermore, the clarified definition may assist in the enforcement of tax laws and compliance among vendors selling these products.

Summary

House Bill 2599 seeks to amend the Texas Tax Code concerning the definition and taxation of chewing tobacco. The bill specifically clarifies what constitutes chewing tobacco, specifying that it includes products such as Twist, plug, and scrap tobacco that are not intended to be smoked. The measure aims to create a more precise regulatory framework for the taxation of tobacco products, ensuring that definitions are clear and reduce possible ambiguities in tax law.

Contention

The discussions surrounding HB 2599 might evoke contention regarding its potential implications on public health and state revenue. Proponents of the bill could argue that a clearly defined tax structure allows for better regulation and compliance among tobacco sellers. Conversely, opponents might raise concerns about the promotion of tobacco use through lower taxes on chomping products, viewing it as counter to public health efforts aimed at reducing tobacco consumption rates. Observers may watch closely how such changes in taxation affect overall tobacco product consumption and state revenue.