By: Hamric (Senate Sponsor - Armbrister) H.B. No. 5
(In the Senate - Received from the House April 27, 2006;
April 27, 2006, read first time and referred to Committee on
Finance; May 7, 2006, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 5; May 7, 2006, sent
to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 5 By: Ogden
A BILL TO BE ENTITLED
AN ACT
relating to increases in the taxes on cigarettes and other tobacco
products.
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) $70.50 [$20.50] 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 155.0211(b), Tax Code, is amended to
read as follows:
(b) The tax rate for tobacco products other than cigars is
40 [35.213] percent of the manufacturer's list price, exclusive of
any trade discount, special discount, or deal.
SECTION 3. The changes in law made by this Act do 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 January 1, 2007.
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