86R4333 SRA-D
By: Thierry H.B. No. 627
A BILL TO BE ENTITLED
AN ACT
relating to the rate of the cigarette tax and the allocation of
certain revenue from that tax to the foundation school fund;
increasing the rate of a 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) $82.50 [$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 154.6035, Tax Code, is amended to read as
follows:
Sec. 154.6035. ALLOCATION OF CERTAIN REVENUE TO PROPERTY
TAX RELIEF FUND AND FOUNDATION SCHOOL 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 $20.50 per thousand on cigarettes, regardless of weight,
but not exceeding $70.50 per thousand on cigarettes weighing three
pounds or less per thousand or $72.60 per thousand on cigarettes
weighing more than three pounds per thousand, 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 $70.50 per thousand on
cigarettes weighing three pounds or less per thousand, or
attributable to the portion of the tax rate in excess of $72.60 per
thousand on cigarettes weighing more than three pounds per
thousand, shall be deposited to the credit of the foundation school
fund.
SECTION 3. 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 4. This Act takes effect September 1, 2019.