PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
SUBCHAPTER G. CIGARETTE TAX
The Comptroller of Public Accounts proposes an amendment to §3.101, concerning cigarette tax and stamping activities. Subsection (g) and (g)(1) are amended to reflect the change in the interagency cooperation contract between the comptroller and the Texas Alcoholic Beverage Commission (TABC) for the comptroller to sell cigarette tax stamps to the TABC for the purpose of collecting the cigarette tax at ports of entry into the state. The comptroller, in a new interagency cooperation contract with the TABC, authorizes the TABC to generate a cigarette tax stamp using the TABC's Ports of Entry Tax Collection System (POETCS) and to affix the cigarette tax stamp to cigarette packages for which the cigarette tax has been collected.
John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government.
Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the proposed amendment would benefit the public by improving the administration of the ports of entry program of the Texas Alcoholic Beverage Commission. This rule is proposed under Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.
Comments on the proposal may be submitted to Bryant K. Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711-3528.
This amendment is proposed under Tax Code, §111.002 and §111.0022, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2, and taxes, fees, or other charges which the comptroller administers under other law.
The amendment implements Tax Code, §154.021(a) and §154.024(b).
§3.101.Cigarette Tax and Stamping Activities.
(a) - (f) (No change.)
(g) Generation and affixing [Issuance]
of cigarette tax stamps by [to] the Texas Alcoholic
Beverage Commission (TABC).
(1) The comptroller, by interagency cooperation
contract, may authorize [shall sell cigarette tax stamps
to] the Texas Alcoholic Beverage Commission to generate
a cigarette tax stamp using the TABC's Port of Entry Tax Collection
System (POETCS) and to affix the cigarette tax stamp to cigarette
packages for the purpose of collecting the cigarette tax at
ports of entry into the state.
(2) Payment for the cigarette tax stamps sold will be made by that agency according to the terms and conditions stipulated in the interagency cooperation contract between the comptroller and the Texas Alcoholic Beverage Commission.
(h) - (j) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on May 15, 2009.
TRD-200901922
Martin Cherry
General Counsel
Comptroller of Public Accounts
Earliest possible date of adoption: June 28, 2009
For further information, please call: (512) 475-0387