Sources of Revenue: A History of State Taxes and Fees in Texas, 1972-2016 Page: 74
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Sources of Revenue
CIGARS AND TOBACCO PRODUCTS TAX
Revenue Object 3278
RATE & BASE
State: Cigar rate varies with weight per 1,000, constituents and price: from 1 per 10 cigars for weight under 3 lbs.
to $15 per 1,000 cigars for weight over 3 lbs. Tobacco products other than cigars (snuff, chewing tobacco,
pipe tobacco, roll-your-own tobacco and other): $1.22 per ounce of manufacturer's list weight
Local: None
Federal: Large cigars - 52.75% of sales price, not to exceed $402.60 per 1,000 cigars;
Small cigars -- $50.33 per 1,000 cigars;
Snuff - $1.51 per pound;
Chewing tobacco - $0.5033 per pound;
Pipe tobacco - $2.8311 per pound; and
Roll-your-own tobacco - $24.78 per pound
Major Exemptions: Importation with retail value at 25 cents or less; Indian tribal facility sales; federal institution sales
ADMINISTRATION
Agency: Comptroller of Public Accounts
Number of Taxpayers: 442
Payment Cycle: Monthly
Due Date: 30th of month for distributors
Remitted By: Cigar and tobacco wholesale distributors
LEGAL CITATION(S)
Texas Tax Code, 155.021, 155.0211, 155.2415
ENACTED
(Before 1959 - taxed under the cigarette tax)
56th Legislature (1959) $0.01 per 10 small cigars, $7.50 per 1,000 large cigars <3.3 cents each (retail price), $15.00 per 1,000 large
cigars >3.3 cents each (retail price)
RATE & BASE CHANGES
60th Legislature (1967) Rate for certain large cigars reduced to $12.00 per 1,000
62nd Legislature (1971) Changed 3.3 cent price threshold to factory price from retail price
64th Legislature (1975) Rate for certain large cigars reduced to $11.00 per 1,000
65th Legislature (1977) $11 per 1,000 rate extended to a broader range of large cigars
68th Legislature (1984) Removed exemption for snuff
70th Legislature (1987) 28.125% for tobacco products other than cigars (eff. 10/1/87)
71st Legislature (1990) 35.213% for tobacco products other than cigars (eff. 07/01/90)
79th Legislature, 3rd Called Session (2006) 40% for tobacco products other than cigars (eff. 01/01/07)
81st Legislature (2009) Per ounce, $1.10 (eff. 09/01/09), $1.13 (eff. 09/01/10), $1.16 (eff. 09/01/11), $1.19 (eff. 09/01/12), $1.22 (eff.
12/01/13) for tobacco products other than cigars
ALLOCATION
General Revenue Fund 0001 - All tax revenue from cigars; from non-cigar tobacco products (1) tax revenues that would be
generated under the previous manufacturer's list price-based method of taxation at 35.213%. In addition to cigars and (1), tax
proceeds remaining (2) after the (initial) allocation to GR and the allocation to the Property Tax Relief Fund, if the Comptroller
were to determine that the unencumbered beginning balance in the Physician Education Loan Repayment Account is suffcient to
fund the Legislatively-mandated purposes for which the account was originally created; otherwise, the Physician Education account
would receive all revenue under (2).
Property Tax Relief Fund 0304 - All non-cigar tax revenue that would be generated under the previous manufacturer's list price-
based method of taxation at 40% less the amount (see (1) above) initially allocated to GR.
GR Account - Physician Loan Repayment Program 5144 - For non-cigar tobacco products, account would receive all of the revenuecalculated in the GR section above under (2) if the Comptroller were to not make the determination described; otherwise, this
account would receive no revenue under (2).
Texas Comptroller of Public Accounts - January 2017
74
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Texas. Comptroller's Office. Sources of Revenue: A History of State Taxes and Fees in Texas, 1972-2016, report, January 2016; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth903451/m1/82/: accessed July 9, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.