HB 4013

86(R) - 2019
House Ways & Means
House Ways & Means

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Negative


Rick Miller
Tom Oliverson
Drew Springer
Shawn Thierry
John Zerwas


J.D. Sheffield

Bill Caption

Relating to sales and use taxes on e-cigarettes and vapor products; imposing taxes; providing an administrative penalty; authorizing the imposition of a fee

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB4013, Committee Report 1st House, Substituted: a positive impact of $35,988,500 through the biennium ending August 31, 2021.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

HB 4013 would impose additional sales and use tax on vapor e-cigarettes, with a tax rate of 10% of the sales price. The bill would additionally impose related reporting requirements upon vapor e-cigarette sellers.  Revenue raised from the tax would be deposited to the foundation school fund. Lastly, the bill would allow the Comptroller to revoke the sales tax permits of, and impose fines against businesses convicted of selling e-cigarettes or other cigarette products to minors. 

Vote Recommendation Notes

Texas Action opposes HB 4013 for violating the principles of limited government, free markets and individual liberty.  Sin taxes unfairly punish certain industries and harm Texans by imposing onerous levels of taxation based upon their choice of product. It is not the appropriate role of government to attempt to influence the purchasing decisions of private citizens through the imposition of onerous taxes.