Tex. Tax Code Section 154.026
Cigarettes Used Exclusively for Research Purposes

(a)

Cigarettes are exempt from the tax imposed by Section 154.021 (Imposition and Rate of Tax) if the cigarettes are:

(1)

contained in a package labeled with “Experimental Use Only,” “Reference Cigarettes,” or other similar wording indicating that the manufacturer intends for the product to be used exclusively for experimental purposes in compliance with 27 C.F.R. Section 40.232;

(2)

sold directly by a manufacturer to a research facility in this state, including:

(A)

a laboratory, hospital, medical center, college, or university; or

(B)

a facility designated as a Tobacco Center of Regulatory Science by the National Institutes of Health;

(3)

used by the research facility exclusively for experimental purposes; and

(4)

not resold by the research facility.

(b)

Sections 154.041 (Stamp Required), 154.302 (Payment of Double Amount), 154.502 (Unstamped Cigarettes), 154.503, and 154.515 do not apply to cigarettes exempted by Subsection (a).
Added by Acts 2017, 85th Leg., R.S., Ch. 33 (S.B. 1390), Sec. 3, eff. September 1, 2017.

Source: Section 154.026 — Cigarettes Used Exclusively for Research Purposes, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­154.­htm#154.­026 (accessed Jun. 5, 2024).

154.001
Definitions 154.002
Storage 154.021
Imposition and Rate of Tax 154.022
Tax Imposed on First Sale of Cigarettes 154.023
Impact of Tax 154.024
Importation of Small Quantities 154.025
Lien to Secure Payment of Tax 154.026
Cigarettes Used Exclusively for Research Purposes 154.041
Stamp Required 154.042
Distributor 154.043
Sale of Stamps 154.044
Purchase from a Distributor 154.045
Recall by Comptroller 154.046
Invoice for Stamps 154.047
Stamps Shipped with Draft Attached 154.050
Payment 154.051
Cigarette Tax Recovery Trust Fund 154.052
Distributor’s Stamping Allowance 154.053
Manufacture of Stamps 154.054
Redemption and Destruction of Stamps 154.058
Inventory on Tax Increase 154.060
Cancellation 154.061
Penalty for Failure to Pay Tax 154.101
Permits 154.102
Combination Permit 154.107
Denial of Permit 154.110
Issuance of Permit 154.111
Permit Year 154.114
Final Suspension or Revocation of a Permit 154.116
Comptroller May Refuse to Sell Stamps 154.117
Display of Permit 154.121
Revenue 154.152
Interstate Stock 154.201
Record of Purchase or Receipt 154.202
Record of Stamps 154.203
Report of Sale or Use 154.204
Manufacturer’s Records and Reports 154.205
Manufacturer’s Representative’s Records 154.207
Common Carrier Records 154.208
Bonded Agent’s Records 154.209
Availability of Records 154.210
Distributor’s Report 154.211
Failure to Produce Records 154.212
Reports by Wholesalers and Distributors of Cigarettes 154.0225
Liability of Permitted Distributor 154.301
Compliance Investigation and Recovery of Costs 154.302
Payment of Double Amount 154.304
Inspection 154.305
Refund for Stamps 154.306
Exchange of Stamps 154.307
Records 154.308
Deficiency Determination, Penalties, and Interest 154.309
Redetermination 154.403
Seizure 154.404
Comptroller’s Report 154.405
Forfeiture Proceeding 154.406
Disposition of Forfeited Property 154.407
Photographic Evidence in Cases Involving Seized Cigarettes 154.409
Unstamped Cigarettes 154.410
Seizure or Sale No Defense 154.411
Waiver Permitted 154.412
Payment to Treasury 154.413
Preferred State Tax Lien 154.414
Reciprocal Agreements 154.415
Donations 154.0415
Cigarettes to Which Stamps May Not Be Affixed 154.501
Penalties 154.502
Unstamped Cigarettes 154.504
Possession of Quantities Less than Individual Package 154.505
Cancellation of Stamp 154.506
Concealment of a Violation 154.507
Misleading the Comptroller 154.508
Refusing to Surrender Cigarettes 154.509
Permits 154.510
Misdemeanor 154.511
Transportation of Cigarettes 154.512
Inspection of Premises 154.513
Previously Used or Old Design Stamps 154.514
Sale of Stamps 154.516
Books and Records 154.517
Felony 154.518
Overlap of Penalties 154.519
Venue 154.520
Counterfeit Stamps 154.601
Nature of Tax 154.602
Funds for Enforcement 154.603
Disposition of Revenue 154.1015
Sales 154.1135
Payment for Permits 154.1141
Summary Suspension of a Permit 154.1145
Hearings 154.2085
Export Warehouse’s Records 154.4045
Sale of Seized Cigarettes 154.4095
Deceptive Trade Practice 154.5025
Affixing Stamps to Certain Cigarettes 154.5095
Fingerprints 154.6035
Allocation of Certain Revenue to Property Tax Relief Fund
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Accessed:
Jun. 5, 2024

§ 154.026’s source at texas​.gov