Texas Senate Bill SB1052

Texas 2011 - 82nd Regular

• Introduced: 3/2/11
• Refer: 3/16/11

Caption

Relating to an increase in the cigarette tax to fund the child health plan program.

Impact

The implementation of SB1052 is expected to have a broad impact on state laws governing tax revenue allocation. Notably, it delineates how the proceeds from the increased cigarette tax will be distributed, with specific allocations directed towards the property tax relief fund and the children's health insurance program. This targeted funding is anticipated to provide needed resources for child healthcare services, which can positively affect health outcomes in communities across Texas.

Summary

SB1052 aims to increase the cigarette tax in Texas, with the primary purpose of funding the child health plan program. This bill proposes an amendment to the Tax Code, specifically adjusting the tax rates on cigarettes based on weight. The amended tax rates are set at $120.50 per thousand for lighter cigarettes and involve a tiered structure for heavier ones, marking a significant increase from prior tax levels. The intention behind this adjustment is to generate additional revenue to support healthcare initiatives aimed at children across the state.

Sentiment

Sentiment surrounding SB1052 appears to be mixed. Supporters generally view the bill as a progressive move towards ensuring healthcare funding for vulnerable children, arguing that increased taxes on cigarettes can serve as both a revenue source and a mechanism to discourage smoking. Conversely, opponents may contend that higher cigarette taxes could disproportionately affect low-income populations and create additional financial burdens for families that may already struggle with healthcare costs.

Contention

A key point of contention regarding SB1052 lies in the balance between raising taxes for public health funding and the economic repercussions of such an increase. Critics argue that the bill does not sufficiently address potential downsides, such as the risk of decreased cigarette sales impacting revenue over time. Moreover, debates may arise over the ethics of funding child health insurance through taxes on products like cigarettes, which are often viewed as harmful.