Bill Text: TX SB934 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to increasing or decreasing at the rate of inflation the rates of taxes imposed on cigarettes, cigars, and other tobacco products.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-03-18 - Referred to s/c on Fiscal Matters by Chair [SB934 Detail]
Download: Texas-2013-SB934-Introduced.html
83R9671 KLA-D | ||
By: Davis | S.B. No. 934 |
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relating to increasing or decreasing at the rate of inflation the | ||
rates of taxes imposed on cigarettes, cigars, and other tobacco | ||
products. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 154.021, Tax Code, is amended by | ||
amending Subsection (b) and adding Subsections (c), (d), and (e) to | ||
read as follows: | ||
(b) Subject to Subsection (c), the [ |
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(1) $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. | ||
(c) In this subsection, "consumer price index" means the | ||
annual revised Consumer Price Index for All Urban Consumers | ||
(CPI-U), U.S. City Average, seasonally adjusted, as published by | ||
the federal Bureau of Labor Statistics of the United States | ||
Department of Labor, or its successor in function. On September 1 | ||
of each year, the tax rates prescribed by this section that were in | ||
effect on August 31 of that year are each increased or decreased by | ||
a percentage equal to the percentage change in the most recent | ||
consumer price index, and the resulting amount is rounded to the | ||
nearest cent, except that: | ||
(1) if that percentage increase or decrease in the | ||
most recent consumer price index is more than three percent, the tax | ||
rate is increased or decreased, as applicable, by a maximum of three | ||
percent, and the resulting amount is rounded to the nearest cent; | ||
and | ||
(2) if the computation otherwise required by this | ||
subsection would result in a tax rate that is less than the rate | ||
prescribed by Subsection (b), the tax rate is the rate prescribed by | ||
that subsection. | ||
(d) Not later than July 31 of each year, the comptroller | ||
shall: | ||
(1) compute in accordance with Subsection (c) the tax | ||
rates that will apply in the succeeding state fiscal year; and | ||
(2) publish the computed rates on the comptroller's | ||
Internet website. | ||
(e) The comptroller may adopt any rules necessary for the | ||
implementation of Subsections (c) and (d). | ||
SECTION 2. Section 155.021(b), Tax Code, is amended to read | ||
as follows: | ||
(b) Subject to Section 155.0212, the [ |
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(1) one cent per 10 or fraction of 10 on cigars | ||
weighing three pounds or less per thousand; | ||
(2) $7.50 per thousand on cigars that: | ||
(A) weigh more than three pounds per thousand; | ||
and | ||
(B) sell at factory list price, exclusive of any | ||
trade discount, special discount, or deal, for 3.3 cents or less | ||
each; | ||
(3) $11 per thousand on cigars that: | ||
(A) weigh more than three pounds per thousand; | ||
(B) sell at factory list price, exclusive of any | ||
trade discount, special discount, or deal, for more than 3.3 cents | ||
each; and | ||
(C) contain no substantial amount of nontobacco | ||
ingredients; and | ||
(4) $15 per thousand on cigars that: | ||
(A) weigh more than three pounds per thousand; | ||
(B) sell at factory list price, exclusive of any | ||
trade discount, special discount, or deal, for more than 3.3 cents | ||
each; and | ||
(C) contain a substantial amount of nontobacco | ||
ingredients. | ||
SECTION 3. Section 155.0211(b), Tax Code, is amended to | ||
read as follows: | ||
(b) Subject to Section 155.0212, and except [ |
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provided by Subsection (c), the tax rate for each can or package of | ||
a tobacco product other than cigars is $1.22 per ounce and a | ||
proportionate rate on all fractional parts of an ounce. | ||
SECTION 4. Subchapter B, Chapter 155, Tax Code, is amended | ||
by adding Section 155.0212 to read as follows: | ||
Sec. 155.0212. ANNUAL ADJUSTMENT OF RATES. (a) In this | ||
section, "consumer price index" means the annual revised Consumer | ||
Price Index for All Urban Consumers (CPI-U), U.S. City Average, | ||
seasonally adjusted, as published by the federal Bureau of Labor | ||
Statistics of the United States Department of Labor, or its | ||
successor in function. | ||
(b) On September 1 of each year, the tax rates prescribed by | ||
Sections 155.021 and 155.0211 that were in effect on August 31 of | ||
that year are each increased or decreased by a percentage equal to | ||
the percentage change in the most recent consumer price index, and | ||
the resulting amount is rounded to the nearest cent, except that: | ||
(1) if that percentage increase or decrease in the | ||
most recent consumer price index is more than three percent, the tax | ||
rate is increased or decreased, as applicable, by a maximum of three | ||
percent, and the resulting amount is rounded to the nearest cent; | ||
and | ||
(2) if the computation otherwise required by this | ||
subsection would result in a tax rate that is less than the rate | ||
prescribed by Section 155.021 or 155.0211, as applicable, the tax | ||
rate is the rate prescribed by the applicable section. | ||
(c) Not later than July 31 of each year, the comptroller | ||
shall: | ||
(1) compute in accordance with Subsection (b) the tax | ||
rates that will apply in the succeeding state fiscal year; and | ||
(2) publish the computed rates on the comptroller's | ||
Internet website. | ||
(d) The comptroller may adopt any rules necessary for the | ||
implementation of Subsections (b) and (c). | ||
SECTION 5. (a) As soon as possible after the effective date | ||
of this Act, the comptroller of public accounts shall: | ||
(1) make the initial computations and determine the | ||
tax rates that apply beginning September 1, 2013, in accordance | ||
with: | ||
(A) Section 154.021, Tax Code, as amended by this | ||
Act; and | ||
(B) Section 155.0212, Tax Code, as added by this | ||
Act, except as provided by Subsection (b) of this section; and | ||
(2) publish on the comptroller's Internet website the | ||
tax rates computed under Subdivision (1) of this subsection that | ||
will apply beginning September 1, 2013. | ||
(b) Not later than July 31, 2014, the comptroller of public | ||
accounts shall make the initial computation under Section 155.0212, | ||
Tax Code, as added by this Act, with respect to the tax rate | ||
described by Section 155.0211(b), Tax Code, as amended by this Act, | ||
and determine the tax rate that will apply under that section | ||
beginning September 1, 2014. | ||
SECTION 6. The changes in law made by this Act apply only to | ||
a tax imposed on or after September 1, 2013. A tax imposed before | ||
that date is governed by the law in effect on the date the tax was | ||
imposed, and the former law is continued in effect for that purpose. | ||
SECTION 7. The changes in law made by this Act do not affect | ||
tax liability accruing before September 1, 2013. 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 8. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect on the 91st day after the last day of the | ||
legislative session. |