Audit Procedures for Cigarette Tax
- Chapter 1: Permits, Records and Reports
- Chapter 2: Pre-audit Research
- Chapter 3: Entrance Conference
- Chapter 4: Audit Procedures for Texas Distributors
- Chapter 5: Audit Procedures for Out-of-State Distributors
- Chapter 6: Audit Write-Up
- Appendix: Statute, Rules, and Examples
The Texas legislature enacted the cigarette and tobacco tax laws in 1931. The tax on cigarettes in 1931 was $0.03. Effective January 1, 2007, the tax increased to $1.41. Revenues from cigarette tax are allocated to the general and foundation school fund.
The Comptroller was originally charged with the enforcement of the cigarette tax. The Texas State Treasury handled this responsibility from September 1989 until it was abolished in 1997. The Comptroller again took over the responsibility. Currently the Comptroller is responsible for tax collections, account maintenance, enforcement, and audit of cigarette permit holders.
This audit procedure manual has been written for the auditor, to be used as a training tool and reference guide. The information is current as of the date this manual was published. The reader is responsible for any changes that occur after that date.
References to taxability, administrative policies, tax law and rules are provided for guidance of field auditors and are subject to change due to administrative hearings and actions of the courts or legislature. Before relying on this information, the reader should verify the current status of any information by contacting the Comptroller of Public Accounts. Call nationwide toll-free: (800) 531-5441.