85(R) - 2017
Relating to the application of and allocation of revenue from certain taxes imposed on certain tobacco products.
SB 1505 would allocate revenue from taxes on tobacco products to the permanent fund supporting graduate medical education and the newly created nursing faculty loan repayment assistance program account.
SB 1505 would re-classify "little cigars" to be taxed at the same rate as cigarettes. Procedures would be established for the allocation of new tax revenue for the little cigar tax to both funds listed above. Other tax revenue allocations would be made to the property tax relief fund, general revenue fund, the physician education loan repayment program account, and any remainder to the nursing faculty loan repayment assistance program account
The bill would repeal Sections 61.9823(b) and 61.9826 of the Education Code, which limit nursing faculty loan repayment assistance to $7,000 per year and allow for the allocation of GR Account 5144 - Physician Education Loan Repayment funds exceeding need to the Nursing Faculty Repayment Assistance Program.
Vote Recommendation Notes
The government should not be making regulations to help individuals repay their loans, since such programs are an inappropriate use of taxpayer funds. This bill would also use tax revenue from one industry to subsidize another. This violates our principles of limited government, free markets, and individual liberty, so for these reasons, we oppose SB 1505.