View Single Post
Old March 3rd, 2010, 11:17 AM
Special K's Avatar
Special K
Status: Offline
Hookah Nut
Join Date: Jan 2010
Location: Houston
Posts: 208
Default Re: More Texas Tobacco Tax Woes

Originally Posted by CaptHowdy View Post
I asked them and made sure 3 times before I got off chat. All they charge is sales tax. What I don't understand is why.
Quickly scanned the tax code. Section 155.0211(e):

A change in the tax rate in effect for a state fiscal year that occurs in accordance with this section does not affect taxes imposed before that fiscal year, and the rate in effect when those taxes were imposed continues in effect for purposes of the liability for and collection of those taxes.
In essence, if Hookah-shisha is selling tobacco that was received before September 1, 2009, or whatever the applicable date was, they pay the tax applicable at that time.
Reply With Quote