82S10054 ALL-D
By: Alvarado H.B. No. 35
A BILL TO BE ENTITLED
AN ACT
relating to an increase in the cigarette tax, to the use of revenue
from the tax, and to the enforcement of the tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 154.021(b), Tax Code, is amended to read
as follows:
(b) The tax rates are:
(1) $123 [$70.50] per thousand on cigarettes weighing
three pounds or less per thousand; and
(2) the rate provided by Subdivision (1) plus $2.10
per thousand on cigarettes weighing more than three pounds per
thousand.
SECTION 2. Section 154.053(a), Tax Code, is amended to read
as follows:
(a) The comptroller shall design and have printed or
manufactured cigarette tax stamps. If the comptroller determines
that it is necessary for the best enforcement of this chapter, the
comptroller shall [may] change the design, color, [or]
denomination, technology, or other feature of the stamps. The
comptroller shall determine the quantity and the size, design,
color, [or] denomination, technology, or other feature [and
quantity] of stamps manufactured. The stamps shall be manufactured
so that they may be easily and securely attached to an individual
package of cigarettes. The comptroller may designate the method of
identification for the stamps and shall award the contract for the
printing or manufacturing to the person submitting the bid that
will give the best protection to the state in enforcing this
chapter.
SECTION 3. Section 154.054(a), Tax Code, is amended to read
as follows:
(a) The comptroller may redeem unused cigarette tax stamps
that were lawfully issued before a change in the stamps' design,
color, [or] denomination, technology, or other feature [change].
SECTION 4. Sections 154.058(a) and (d), Tax Code, are
amended to read as follows:
(a) On the effective date of a tax increase, each
distributor, wholesaler, and retailer who has 2,000 or more
cigarettes in packages stamped with stamps of an old design, color,
[or] denomination, technology, or other feature shall immediately
inventory the packages and any unused stamps of an old design,
color, [or] denomination, technology, or other feature and file a
report of the inventory with the comptroller.
(d) This section does not affect the date payment is due for
stamps of an old design, color, [or] denomination, technology, or
other feature if payment has not been made for the stamps on or
before the effective date of the tax increase.
SECTION 5. Section 154.6035, Tax Code, is amended to read as
follows:
Sec. 154.6035. ALLOCATION OF CERTAIN REVENUE TO PROPERTY
TAX RELIEF AND GENERAL REVENUE FUNDS [FUND]. (a) Notwithstanding
Section 154.603, all proceeds from the collection of taxes imposed
by this chapter attributable to the portion of the tax rate in
excess of $23 [$20.50] per thousand on cigarettes, regardless of
weight, shall be deposited to the credit of the property tax relief
fund under Section 403.109, Government Code.
(b) Notwithstanding Section 154.603, all proceeds from the
collection of taxes imposed by this chapter attributable to the
portion of the tax rate in excess of $20.50 per thousand on
cigarettes, but not exceeding $23 per thousand, regardless of
weight, shall be deposited to the credit of an account in the
general revenue fund. Money in the account may be appropriated only
to the Department of State Health Services for use by the
department's Office of Smoking and Health for programs and
initiatives to reduce the use of tobacco and tobacco products.
SECTION 6. This Act takes effect October 1, 2011.