Bill Text: TX HB2602 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to an increase in the cigarette tax and the enforcement and uses of the tax.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2011-03-21 - Left pending in committee [HB2602 Detail]

Download: Texas-2011-HB2602-Introduced.html

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By: Alvarado H.B. No. 2602

A BILL TO BE ENTITLED
AN ACT
relating to an increase in the cigarette tax and the enforcement and
uses 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 $20.50 per thousand on cigarettes, but not exceeding
$70.50 per thousand, 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 attributable to the portion of the tax rate in
excess of $70.50 per thousand on cigarettes, regardless of weight,
shall be deposited to the credit of the general revenue fund. Of
the amount deposited as provided by this subsection, $2.50 per
thousand on cigarettes shall be deposited to the credit of an
account in the general revenue fund for the exclusive use of the
Office of Smoking and Health of the Department of State Health
Services.
SECTION 6. This Act takes effect September 1, 2011.