(a) The tax imposed by this chapter is not an occupation tax.
(b) If a court of competent jurisdiction declares the tax imposed by this chapter to be an occupation tax:
(1) the legislature intends that the holding not affect the validity of the remaining provisions of this chapter; and
(2) the net revenue is allocated to the general revenue fund, except that one-fourth of the net revenue shall be transferred from the general revenue fund to the available school fund.
(c) A tax imposed by this chapter is in lieu of any other occupation or excise tax imposed by the state or a political subdivision of the state on cigarettes.
Official text of the Texas Tax Code as published by the Texas Legislative Council.