| 1 | 1 | | 86R4333 SRA-D |
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| 2 | 2 | | By: Thierry H.B. No. 627 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the rate of the cigarette tax and the allocation of |
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| 8 | 8 | | certain revenue from that tax to the foundation school fund; |
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| 9 | 9 | | increasing the rate of a tax. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 154.021(b), Tax Code, is amended to read |
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| 12 | 12 | | as follows: |
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| 13 | 13 | | (b) The tax rates are: |
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| 14 | 14 | | (1) $82.50 [$70.50] per thousand on cigarettes |
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| 15 | 15 | | weighing three pounds or less per thousand; and |
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| 16 | 16 | | (2) the rate provided by Subdivision (1) plus $2.10 |
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| 17 | 17 | | per thousand on cigarettes weighing more than three pounds per |
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| 18 | 18 | | thousand. |
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| 19 | 19 | | SECTION 2. Section 154.6035, Tax Code, is amended to read as |
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| 20 | 20 | | follows: |
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| 21 | 21 | | Sec. 154.6035. ALLOCATION OF CERTAIN REVENUE TO PROPERTY |
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| 22 | 22 | | TAX RELIEF FUND AND FOUNDATION SCHOOL FUND. (a) Notwithstanding |
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| 23 | 23 | | Section 154.603, all proceeds from the collection of taxes imposed |
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| 24 | 24 | | by this chapter attributable to the portion of the tax rate in |
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| 25 | 25 | | excess of $20.50 per thousand on cigarettes, regardless of weight, |
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| 26 | 26 | | but not exceeding $70.50 per thousand on cigarettes weighing three |
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| 27 | 27 | | pounds or less per thousand or $72.60 per thousand on cigarettes |
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| 28 | 28 | | weighing more than three pounds per thousand, shall be deposited to |
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| 29 | 29 | | the credit of the property tax relief fund under Section 403.109, |
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| 30 | 30 | | Government Code. |
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| 31 | 31 | | (b) Notwithstanding Section 154.603, all proceeds from the |
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| 32 | 32 | | collection of taxes imposed by this chapter attributable to the |
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| 33 | 33 | | portion of the tax rate in excess of $70.50 per thousand on |
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| 34 | 34 | | cigarettes weighing three pounds or less per thousand, or |
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| 35 | 35 | | attributable to the portion of the tax rate in excess of $72.60 per |
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| 36 | 36 | | thousand on cigarettes weighing more than three pounds per |
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| 37 | 37 | | thousand, shall be deposited to the credit of the foundation school |
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| 38 | 38 | | fund. |
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| 39 | 39 | | SECTION 3. The change in law made by this Act does not |
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| 40 | 40 | | affect tax liability accruing before the effective date of this |
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| 41 | 41 | | Act. That liability continues in effect as if this Act had not been |
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| 42 | 42 | | enacted, and the former law is continued in effect for the |
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| 43 | 43 | | collection of taxes due and for civil and criminal enforcement of |
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| 44 | 44 | | the liability for those taxes. |
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| 45 | 45 | | SECTION 4. This Act takes effect September 1, 2019. |
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