Texas Senate Bill SB216

Texas 2021 - 87th Regular

Caption

Relating to the regulation of, and taxes imposed on the sale or use of, cigarettes, tobacco products, and e-cigarettes; imposing taxes; requiring a permit; imposing a fee; providing administrative penalties.

Impact

The implementation of SB216 is expected to significantly alter the existing framework governing the sale and distribution of tobacco and e-cigarette products in Texas. By mandating permits for retailers, the bill aims to ensure compliance with health regulations and penalize violations more rigorously through administrative actions, such as suspending or revoking permits after repeated offenses. Funds generated from the new taxes are designated for the general revenue fund and can be appropriated to health services aimed at preventing and controlling tobacco and e-cigarette use.

Summary

SB216 seeks to impose regulations and taxes on the sale and use of cigarettes, tobacco products, and e-cigarettes in Texas. The bill introduces a permitting requirement for retailers, which necessitates that businesses acquire permits to sell these items. The legislation establishes two new taxes: a sales tax on e-cigarettes and a use tax on their consumption. This legislation aims to enhance the state's revenue and promote public health measures related to tobacco and nicotine products.

Contention

There may be contention surrounding SB216 with respect to the imposition of additional taxes and regulatory burdens on retailers, which could disproportionately affect small businesses in the tobacco market. Critics might argue that these added costs could lead to increased prices for consumers, potentially driving them to illicit markets or making legal purchasing less accessible. Furthermore, detailed requirements for compliance and taxation could generate administrative challenges for both the government and the businesses affected.