Issue Date:
Revised Date: 2017-12-20

Legal Cites

Object Type

Cash — Tobacco

Origin Date

1935 by the 44th Leg.

Description

$70.50 per 1,000 cigarettes weighing 3 pounds or less ($1.41 per pack of 20)

$72.60 per 1,000 cigarettes weighing more than 3 pounds ($1.452 per pack of 20).

The tax stamp or meter impression is affixed to the bottom of the package. A stamping allowance of 2.5% of the face value of the stamp is allowed to all distributors holding a valid permit.

A 5% penalty is due from a distributor who fails to timely pay the tax. If not paid in 30 days after due date, an additional 5% is due. The minimum penalty is $50.

Effective January 1, 2007 all proceeds from taxes attributable to the rate increase in excess of $20.50 per thousand, are deposited to the Property Tax Relief Fund (0304).

Exemptions to the tax apply to cigarettes used for experimental purposes and those sold directly to research facilities.

Due Date

Distributors and solicitors report monthly for activities of the preceding month, distributors on or before 10th day of each month, solicitors on or before 5th day of each month. Distributing agents report daily when cigarettes received in Texas for first sale.

Collecting Agencies

Note

Formerly deposited to the Omnibus Tax Clearance Fund (No. 0120). H.B. 872, 67th Leg. R.S. abolished Fund 0120 and moved deposit to General Revenue.

Prior to August 31, 1995, a portion of the tax was allocated 18.75% to the Foundation School Account (No. 0193) and 81.25% to General Revenue Fund. The amount subject to this allocation was $2 per 1,000 cigarettes weighing 3 pounds or less and $4.10 per 1,000 cigarettes weighing more than 3 pounds. Throughout its history, the remainder of this tax, after these allocations, has been split between the Texas Local Parks, Recreational and Open Space Fund (No. 0467), State Parks Fund (0064), the Foundation School Fund (0193) and others in various percentages. Many of these allocations were abolished and in years just prior to 1995 and the remainder deposited to General Revenue. All of these revenue dedications were abolished August 31, 1995 per § 403.094, Government Code as part of funds consolidation. 

Amended by H.B. 872, 67th Leg., R.S.

Amended by S.B. 325, 68th Leg., R.S.

Rates Amended by H.B. 122, 68th Leg., 2nd C.S., effective October 2, 1984 and September 1, 1985.

S.B. 689, 72nd Leg., R.S increased stamp allowance from 2.75% to 3%.

Amended by H.B. 72, 68th Leg., 2nd C.S., effective September 1, 1984.

Amended by H.B. 955, 69th Leg., R.S.

Amended by H.B. 616, 70th Leg., R.S. and H.B. 61, 70th Leg., 2nd C.S.

Total tax rates amended by H.B. 6, 71st Leg. 6th C.S.

Amended by H.B. 1421, 71st Leg., R.S.

Amended by H.B. 706, 73rd Leg., R.S.

Rates increased from $20.50 base by H.B. 5, 79th Leg., 3rd C.S.

Deposit to Property Tax Relief Fund by H.B. 2 and H.B. 4, 79th Leg., 3rd C.S.

Stamp allowance reduced from 3% by S.B. 1, 81st Leg., 1st C.S.

Research exemption added by S.B. 1390, 85th Leg., R.S.

USAS Values

Appropriation Year 20
USAS Title CIGARETTE TAX
Receipt Category 07 – Tobacco
Receipt Type 01 – Taxes
Object Group 30 – Revenues
USAS Status A
Rev/Exp Category 10 – CIGARETTE AND TOBACCO TAXES