(a) Cigarettes are exempt from the tax imposed by Section 154.021 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, 154.302, 154.502, 154.503, and 154.515 do not apply to cigarettes exempted by Subsection (a).
Official text of the Texas Tax Code as published by the Texas Legislative Council.