New House bill calls for extra levy on snack foods

Austin American Statesman ^ | Jason Embry

[Cat loving Texan]

Measure seeks hike in general sales tax plus extra charge on baked goods, sodas, chips.

Tuesday, March 08, 2005 Texans would pay more than 10 percent sales tax each time they buy cookies, popcorn, soda or other snack foods if the Legislature approves a revised tax bill passed by a House committee late Monday.

The bill is a new version of the tax-shift legislation that the House Ways and Means Committee passed last week. The committee reworked the bill after Comptroller Carole Keeton Strayhorn's office said it would not raise as much money as House leaders projected.

Under the new version, a 3 percent snack tax — which lawmakers included specifically to target obesity — would be added to the general sales tax charged for those items.

The House bill also raises the general state sales tax from 6.25 percent to 7.25 percent, which would be the highest state rate in the country, and slightly more than what was approved last week.

In addition, the bill calls for businesses to pay a payroll tax of 1.15 percent on each employee's salary, up to $90,000 per worker, which is also a slight increase from last week's proposal.

Ways and Means Committee Chairman Jim Keffer, R-Eastland, said the tax would apply to any worker for whom an employer pays into the unemployment insurance system.

The House is considering the new and increased taxes to pay for a proposed one-third reduction in school property taxes as part of an overhaul of the way Texas pays for public schools.

Strayhorn had said the tax plan approved last week would take in about $1 billion less than what would be needed to pay for that property tax relief.

Keffer said he's confident the new version of the bill addresses Strayhorn's concern, as well as questions her office raised about how the bill should be interpreted.

"We've been working with the comptroller all day long," he said. "We are in agreement."

While some foods are exempt from sales taxes, the ones addressed in the snack tax have not been, he said. The new tax would apply to sales in stores but not restaurants.

Keffer said he expects the bill to come before the full House on Thursday. It will follow a major school reform bill that is up for debate today. The tax bill also calls for increases in the cigarette tax and the sales tax for autos and boats. It would expand the sales tax to cover bottled water, newspapers, billboard advertising and car washes and repairs.

All five Republicans on the committee and one Democrat voted for the revised bill.

Monday's events marked the second time in the last two regular legislative sessions that House Republicans had to tweak a major piece of legislation in a committee after the committee had voted on it.

In 2003, the House Civil Practices Committee had to reconsider a tort reform bill after Democrats complained the bill had been discussed at a meeting that wasn't properly announced in advance.

Also Monday, the head of the Senate Education Committee criticized the House school finance legislation because it does not specify where the state would find more than $3 billion in additional funding over the next two years.

"I think it's very difficult to just say we'll pass all this education reform, but we don't know where the money's coming from," said Sen. Florence Shapiro, R-Plano.

"What if they only find $2 billion in scrubbing the budget instead of $3 billion?"

House Speaker Tom Craddick has said the new money for schools will come from savings in other parts of the state budget.

Some members of the House Appropriations Committee are reviewing the budget to look for ways to save that money.

Through a spokeswoman, House Public Education Committee Chairman Kent Grusendorf said, "I have been assured that when House Bill 2 passes, the money to fund House Bill 2 will be made available."

[Squantos]

Awwww just let em take it all !

The sooner we get to the end , the sooner we can shoot the SOB's and start over !

[ElephantinTexas]

Well....... I use to roll my own...... back in the 70's. hehehe.

Which brings up another thought. The DUmmies must be STEAMED! What's going to happen to all of broke dope heads around midnight every night??

It's a raping of the Stoner's! LMBO!

[MeekOneGOP]

New House bill calls for extra levy on snack foods

Excerpt:

Tuesday, March 08, 2005 Texans would pay more than 10 percent sales tax each time they buy cookies, popcorn, soda or other snack foods if the Legislature approves a revised tax bill passed by a House committee late Monday.

The bill is a new version of the tax-shift legislation that the House Ways and Means Committee passed last week. The committee reworked the bill after Comptroller Carole Keeton Strayhorn's office said it would not raise as much money as House leaders projected.

Under the new version, a 3 percent snack tax — which lawmakers included specifically to target obesity — would be added to the general sales tax charged for those items.

The House bill also raises the general state sales tax from 6.25 percent to 7.25 percent, which would be the highest state rate in the country, and slightly more than what was approved last week.

Please let me know if you want ON or OFF my Texas ping list!. . .don't be shy.
No, you don't HAVE to be a Texan to get on this list!

[ElephantinTexas]

all of THE broke dope heads. lol

[johnb838]

What if I'm a contractor?

[Little Ray]

I'm a better cook than Nabisco - And they won't get my money until the pry the spatula from my cold, dead, fingers...

[RandallFlagg]

Oh, the machinery, tobacco and tube quality is so much better nowadays. I can crank out a carton in the time it takes to watch one of my trusty MST3K movies. I even keep a box in my mailbox at work and invite anyone to have one if they want -they're that cheap.

Ask SheLion. She's been doing it longer than I.

[johnb838]

I don't think it makes any differrence. This is nothing new... it was all thought out long ago. It's like payroll taxes. I pay part, the employer pays part, but I pay all.

[Gabz]

Hey........that's my cigarette case!!!!!

Hubby just found a new (to us) tobacco that is $11 a pound. so with tubes, $17 makes 3 cartons.

[RandallFlagg]

OHH!! Link, please?

[Gabz]

He bought it in a tobacco shop........I've never seen it on line. It's called Gambler, and it's from Illinois. Which is really weird, considering we live in Virginia...and we can only get loose tobacco in Maryland or Delaware, if we don't get it online.

[ElephantinTexas]

I'd like some info, too. Tubes?? I use to use Zig-Zag's. lol.

[RandallFlagg]

Is this it?

It's not bad. I agree.

[Licensed-To-Carry]

I just called my State Senator, Florence Shapiro, and blasted her over this tax. I suggested cutting spending, not raising taxes. The lady on the phone said they were receiving quite a few phone calls all of a sudden over this issue.

[RandallFlagg]

http://www.rollyourown.com
http://www.stuffyourown.com
http://www.ryocigarette.com
http://www.ryotobacco.com

Just a few, but there's many others.

[RandallFlagg]

Are you still there? Or have you gone into coma over the varieties?

[KC_Conspirator]

This is outrageous.

[Gabz]

I use Zig-Zags both king and 100s

[Gabz]

I think that's it. this is the first time I've tried it. I like it.

[ElephantinTexas]

LOL. I'm getting educated. I'll be damned if I'm going to pay this smoke tax or drive on these new tolls roads that are going up. It's not the money, it's the principle.

Did you hear about DoD having meetings about putting in new toll roads on Hwy 281 N. from Evans Road (just north of San Antonio) all the way up to the Blanco County line?