Senate Bill No. 298
(By Senators Walker and Holliday)
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[Introduced March 5, 1993; referred to the Committee
on Finance.]
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A BILL to repeal section four-a, article seventeen, chapter
eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to amend and reenact
sections one, two, three, four, five, seven, ten, twelve,
nineteen and twenty of said article seventeen, all relating
to repealing the prohibition against the levy of tax on
cigarettes by municipalities or other governmental
subdivisions; providing for imposing and increasing the
excise tax on the sale and use of all tobacco products;
making existing provisions, procedures, penalties and
regulations currently applicable to cigarette excise tax
applicable to an excise tax on all tobacco products;
changing the "Cigarette Tax Act" to the "Tobacco Products
Excise Tax Act"; imposing a tax on cigars, snuff, chewing
tobacco, other tobacco, cigarette papers and pipes;
converting the present excise tax on cigarettes to a tax on
all tobacco products based on a fixed percentage of the
wholesale price; imposing the applicable percentage in the
year one thousand nine hundred ninety-three; raising the
applicable percentage in the years one thousand nine hundred
ninety-five, one thousand nine hundred ninety-seven and one
thousand nine hundred ninety-nine; and dedicating the
proceeds of the tax to programs relating to the prevention,
control of disease and to the general revenue fund.
Be it enacted by the Legislature of West Virginia:
That section four-a, article seventeen, chapter eleven of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be repealed; and that sections one, two, three, four,
five, seven, ten, twelve, nineteen and twenty of said article be
amended and reenacted, all to read as follows:
ARTICLE 17. TOBACCO PRODUCTS EXCISE TAX ACT.
§11-17-1. Short title.
This article shall be known, and may be cited, as the
"
Cigarette Tax Act Tobacco Products Excise Tax Act".
§11-17-2. Definitions.
When used in this article the following words, terms and
phrases and any variations thereof required by the context, shall
have the meaning ascribed to them in this article, except where
the context indicates a different meaning:
(1) "Cigarette" means:
(a) Any roll for smoking made wholly or in part of tobacco,
irrespective of size or shape and whether or not such tobacco is
flavored, adulterated or mixed with any ingredient, the wrappingor cover of which is made of paper or any substance or material,
except tobacco.
(b) Any roll of tobacco wrapped in any substance containing
tobacco which, because of its appearance, the type of tobacco
used in the filler, or its packing and labeling, is likely to be
offered to, or purchased by, consumers as a cigarette described
in paragraph (a).
(2) "Commissioner" means the state tax commissioner and
where the meaning of the context requires, all deputies or agents
and employees duly authorized by him.
(3) "Consumer" means a person who receives or in any way
comes into possession of
cigarettes tobacco products for the
purpose of consuming or giving them away or disposing of them in
any way other than by sale, barter or exchange.
(4) "Sale" means selling, exchange, transfer of title,
barter, gift, offer for sale or distribution or disposition of.
(5) "Sale at retail" or "retail sale" means a sale to a
consumer or to any person for any purpose other than resale.
(6) "Sale by wholesaler"
shall mean means and
include
includes any bona fide transfer of title to
cigarettes tobacco
products by a wholesaler for a valuable consideration, made in
the ordinary course of trade or in the usual conduct of the
wholesaler's business.
(7) "Stamp" or "meter impression" shall mean any
cigarette
tobacco products stamp or any meter or ink impression authorized
by the tax commissioner to serve as such stamp, and shall be ofthe design and color as prescribed by the tax commissioner.
(8) "Stamped
cigarettes tobacco products" means that the
stamp or meter impression as required by this article has been
affixed to the bottom of the
container or package of
cigarettes
tobacco products or to the tobacco product itself.
(9) "Subjobber" or "subjobber dealer" shall include any
person who purchases stamped
cigarettes tobacco products from
any other person who purchases from the manufacturer when such
other person is located in any state which levies an excise tax
on
cigarettes tobacco products and who purchases such
cigarettes
tobacco products solely for the purpose of bona fide resale to
retail dealers.
(10) "Package" means the individual package, box or other
container in or from which retail sales of
cigarettes tobacco
products are normally made or intended to be made.
(11) "Person" shall mean and include any individual, firm,
association, company, partnership, corporation, joint-stock
company, club, agency, syndicate, municipal corporation or other
political subdivision of this state, trust, receiver, trustee,
fiduciary or conservator, and when used in connection with any
penalties imposed by this article, shall mean and include
officers, directors, trustees or members of any firm,
copartnership, association, corporation, trust or any other unit
acting as a group.
(12) "Retail dealer" includes every person in this state,
other than a wholesaler or subjobber, engaged in the selling of
cigarettes tobacco products at retail to a consumer or to any
person for any purpose other than resale.
(13) "Tobacco products" means any cigarettes, cigars, pipes
designed or used for smoking tobacco or other substances, snuff,
chewing tobacco, other products containing tobacco, cigarette
papers or any other papers prepared, manufactured or made for the
purpose of smoking any other substance.
(13) (14) "Unstamped
cigarettes tobacco products" means that
the stamp or impression as required by this article has not been
affixed to the bottom of the package
of cigarettes or container
of tobacco products or to the tobacco product itself.
(14) (15) "Vending machine operator" is any person operating
one or more
cigarette tobacco products vending machines. The
sale of
cigarettes tobacco products through a vending machine
will be construed as sales at retail and will subject the vending
machine operator to the
cigarette tobacco products tax law and
rules
and regulations pertaining to retail dealers.
Whenever any
cigarette tobacco products vending machine
operator purchases
cigarettes tobacco products directly from the
manufacturer such person or operator shall be deemed to be a
wholesaler and shall be liable for the excise tax and the
affixing of the required stamps.
(15) (
16) "Wholesaler" or "wholesale dealer"
shall include
includes any person who purchases unstamped
cigarettes tobacco
products directly from the manufacturer.
§11-17-3. Levy of tax; rates; dedication of proceeds.
(a) Effective the first day of July, one thousand nine
hundred ninety-three, excise tax is hereby levied upon the sale
or use of tobacco products or a rate equal to twenty-five percent
of the wholesale price of each article or item of tobacco
products sold by the wholesaler or subjobber dealer whether or
not sold at wholesale, or if not sold, then at the same rate upon
the use by the wholesaler or dealer.
Effective the first day of July, one thousand nine hundred
ninety-five, the excise tax rate shall rise to a rate equal to
thirty percent of the wholesale price.
Effective the first day of July, one thousand nine hundred
ninety-seven, the excise tax rate shall rise to a rate equal to
thirty-five percent of the wholesale price.
Effective the first day of July, one thousand nine hundred
ninety-nine, the excise tax rate shall rise to a rate equal to
forty percent of the wholesale price.
(b) Only one sale of the same article shall be used in
computing the amount of tax due under this section.
(c)
Dedication of proceeds. -- The proceeds of the tax
imposed by this article shall be deposited into one or more
accounts by the tax commissioner. The tax commissioner shall
allocate the proceeds as follows: (1) Twenty percent of the
proceeds shall be paid over to the commissioner of the bureau of
public health to be expended for the purposes of prevention,
control, reduction and cessation of tobacco use. All programs
funded from such proceeds, where carried out by private or publicentities, shall be controlled and administered by the
commissioner of the bureau of public health and his or her
employees; (2) twenty percent of the proceeds shall be paid over
to the commissioner of the bureau of public health to be expended
on research relating to the general prevention and control of
disease. All research funded from such proceeds, whether carried
out by private or public entities, shall be controlled and
administered by the commissioner of the bureau of public health
and his or her employees; (3) sixty percent of the proceeds shall
be paid into the general revenue fund.
§11-17-4. Effect of rate changes; tobacco products on hand or
in inventory; report; discount.
Notwithstanding other provisions of this article, it is
hereby declared to be the intent of the Legislature that one rate
of excise tax shall be applicable to all
quantities of cigarettes
tobacco products in this state on and after the effective date of
any change of rate under the provisions of this article. Any
cigarettes tobacco products, on hand or in inventory, on the
effective date of any rate change are hereby deemed to have been
purchased or received on such date.
Every wholesaler, subjobber, subjobber dealer, retail dealer
and vending machine operator who, on the effective date of any
rate change, has on hand or in inventory any
cigarettes tobacco
products upon which the tax or any portion thereof has been
previously paid shall take a physical inventory and shall file a
report thereof with the tax commissioner, in the format asrequired by the tax commissioner, within thirty days thereafter,
and shall pay to the tax commissioner at the time of filing such
report any additional tax due under an increased rate. A
discount of four percent will be allowed on all tax due for
persons who pay additional tax under this section.
§11-17-5. How tax paid; stamps; how affixed; violations.
The tax hereby imposed shall be paid by the purchase of
stamps as provided in this article. Payment for stamps purchased
from the commissioner shall be made by cash, money order, bank
draft, certified check or by noncertified check. However, in the
event a noncertified check is returned unpaid by its bank, then
it shall be considered that payment has not been made for the
taxes due.
A stamp as required by this article, as described in the
cigarette tobacco products excise rules
and regulations, shall be
affixed to, or impressed upon each
package of cigarettes
container or package of tobacco products or the tobacco product
itself of an aggregate value of not less than the amount of tax
upon the contents thereof. The stamp or impression, so affixed,
shall be prima facie evidence of payment of the tax imposed by
this article. Stamps or meter impressions shall be purchased
from the commissioner or his deputy, by, and paid for, by
wholesalers.
Except as may be otherwise provided in the rules
and
regulations prescribed by the commissioner, under authority of
this article, and unless such stamps have been previouslyaffixed, they shall be so affixed by each wholesale dealer who
must be authorized to do business in this state prior to the sale
or delivery of any
cigarettes tobacco products to any retail
dealer or subjobber in this state.
Whenever any
cigarettes tobacco products are found in the
place of business of any retail dealer or subjobber without the
stamps so affixed, the prima facie presumption shall arise that
such
cigarettes tobacco products are kept therein in violation of
the provisions of this article.
If the tax commissioner
if he shall determine determines
that it is practicable to stamp packages of
cigarettes tobacco
products by impression by means of a metering device,
he or she
shall provide that such metering device and its impression may be
used in lieu of the stamps otherwise required by law. The tax
commissioner may authorize any wholesaler purchasing unstamped
cigarettes tobacco products, and holding the business
registration certificate or license as required by chapter
eleven, article twelve of this code, to use any metering device
approved by the commissioner, such devices to be sealed by the
commissioner or a deputy, or agent, authorized by the
commissioner, before being used, which device shall be used only
in accordance with the regulations prescribed by the
commissioner.
A wholesaler may elect to pay the tax in advance where a
metering device is used, in which event such wholesaler shall
deliver the metering device to the commissioner, or his agentauthorized for that purpose, who shall seal the meter in
accordance with the prepayment so made.
§11-17-7. Form of stamps; custody; discounts; security for
payments.
The commissioner shall design and procure stamps to be used
as herein provided for, affixed and attached to containers,
packages or receptacle of whatever kind that may be used for
containing
cigarettes tobacco products or to the tobacco product
itself. In the preparing of said stamp or stamps the same shall
have printed or impressed thereon the words "State of West
Virginia --
Cigarette Tobacco Products Tax Stamp" and such other
words and figures as the commissioner may deem proper.
He The
commissioner shall also prescribe the form of impression to be
placed upon any package or container of
cigarettes tobacco
products by any metering device. The tax commissioner shall
collect the taxes provided for by this article.
Such stamps shall be kept in the custody of the tax
commissioner or such deputies as he may designate to sell the
same. Such stamps shall be sold and accounted for at the tax
value thereof except that the tax commissioner may authorize sale
thereof, or sell to wholesalers in this state, or to wholesalers
outside of this state such stamps at a discount of four percent
of the tax value of such stamps, the same to be allowed as a
commission for affixing the stamps and prepaying the
cigarette
tobacco products tax; and excepting further that the tax
commissioner may, by like regulation so certified, authorize thedelivery of stamps, to wholesalers in this state, or to
wholesalers outside of this state, on credit, allowing the same
discount as when sold for cash, if and when the purchaser shall
file with the tax commissioner a bond made payable to the state
of West Virginia, in such form and amount as the commissioner
shall prescribe, and with surety or sureties to the satisfaction
of the commissioner, conditioned as he may require, to guarantee
payment within thirty days for stamps so delivered within such
period of time and by making of such reports and settlement as
the commissioner may require. The commissioner may, by further
regulations, provide for canceling, renewing or increasing such
bond or for the substitution of the surety thereon.
For the purposes of this article "tax value" shall mean the
tax value of each stamp or meter impression, as imposed by this
article.
§11-17-10. Refunds.
The commissioner shall redeem any unused or mutilated, but
identifiable, stamps that any wholesaler or retail dealer may
present for redemption, on written verified requests made by the
purchaser, his administrators, executors, successors or assigns,
and refund therefor, ninety-five percent of the face value of
said stamps, less any discounts allowed on the purchase of said
stamps. The commissioner shall pay on a like basis for stamps
destroyed by fire or flood upon presentation of proof of such
loss satisfactory to him
or her. Such payments shall, for the
purposes hereof, be deemed to be refunds of taxes improperlycollected and shall be allowed and paid from funds collected.
Stamps or meter impressions on
cigarettes tobacco products
returned to the manufacturers will be subject to refund upon the
filing of an affidavit in duplicate issued by the manufacturer
evidencing the destruction of stamps or meter impressions. A
claim for refund or credit shall be subject to the provisions of
section fourteen, article ten of this chapter.
§11-17-12. Reports required; due date; records to be kept;
inspection of records and stocks; examination of witnesses,
summons, etc.
On or before the fifteenth day of each month, common
carriers, wholesalers, subjobbers, retail dealers and agents, or
vending machine operators, shall, when required by this article,
or the tax commissioner, file a report covering the business
transacted in the previous month covering such information as the
commissioner may deem necessary for the ascertainment or
assessment of the tax imposed by this article; and shall be
signed under penalty of perjury on such forms as the tax
commissioner may prescribe and shall at this time remit any taxes
owed or due, if any.
The reports prescribed herein are required, although a tax
might not be due, or no business transacted, for the period
covered by the report.
Each person required to file a report under this article
shall make and keep such records as shall be prescribed by the
tax commissioner that are necessary to substantiate the returnsrequired by this article, including, but not limited to,
inventories, receipts, disbursements and sales, for a period of
time not less than three years.
Unless otherwise permitted, in writing, by authority of the
tax commissioner, each delivery ticket or invoice for each
purchase or sale of
cigarettes tobacco products must be recorded
upon a serially numbered invoice showing the name and address of
the seller and the purchasers, point of delivery, the date,
quantity, price of the product, and the tax must be set out
separately or the invoice must indicate whether or not the West
Virginia
cigarette tobacco products excise tax is included in the
total price and such other reasonable information as the tax
commissioner may require. However, these invoicing requirements
do not apply to cash sales, and a person making such sales must
maintain such records as may be reasonably necessary to
substantiate his return.
In addition to the tax commissioner's powers set forth in
section five, article ten of this chapter, the tax commissioner
or
his a deputy or agent authorized by
him the commissioner shall
have authority to inspect or examine the stock of
cigarettes
tobacco products kept in and upon the premises of any person
where
cigarettes tobacco products are placed, stored or sold and
shall inspect or examine the records, books, papers, and any
equipment or records of manufacturers,
cigarette tobacco products
stamping agents, wholesalers, subjobbers, retail dealers, common
carriers, or any other person for the purpose of determining thequantity
and value of
cigarettes tobacco products acquired or
disbursed to verify the truth and accuracy of any statement or
report and to ascertain whether the tax imposed by this article
has been properly paid.
In addition to the tax commissioner's powers set forth in
section five, article ten of this chapter, and as a further means
of obtaining the records, books and papers of a manufacturer,
common carrier, wholesaler, subjobber or retailer or any other
person and ascertaining the amount of taxes and reports due under
this article the commissioner and
his any duly appointed agent
shall have the power to examine witnesses under oath; and if the
witness shall fail or refuse at the request of the tax
commissioner or
his any duly appointed agent to grant access to
the books, records or papers, the tax commissioner or such agent
shall certify the facts and names to the circuit court of the
county having jurisdiction of the party and such court shall
thereupon issue summons to such party to appear before the tax
commissioner or
his any duly appointed agent, at a place
designated within the jurisdiction of such court, on a day fixed,
to be continued as the occasion may require for good cause shown
and give such evidence and lay open for inspection such books and
papers as may be required for the purpose of ascertaining the
amount of tax and reports due, if any.
§11-17-19. Penalty for failure to file return when no tax due;
crimes.
(a)
Penalty for failure to file required return where no taxdue. -- In the case of any failure to make or file a return when
no tax is due, as required by this article on the date prescribed
therefor, unless it be shown that such failure was due to
reasonable cause and not due to willful neglect, there shall be
collected a penalty of twenty-five dollars for each month of such
failure or fraction thereof.
(b)
If any person:
(1) Makes any false entry upon
any tobacco products or upon
an invoice, package or container of
cigarettes tobacco products
required to be made under the provisions of this article, or with
intent to evade the tax imposed by this article, presents any
such false entry for the inspection of the commissioner, or
(2) Prevents or hinders the commissioner or
his a deputy
from making a full inspection of any place where
cigarettes
tobacco products subject to the tax imposed by this state are
sold or stored, or prevents or hinders the full inspection of
invoices, books, records or papers required to be kept under the
provisions of this article, or
(3) Sells
cigarettes tobacco products in this state without
there having been first affixed to each
tobacco product or to
each individual package
thereof or container of tobacco products,
as the case may be, the stamp or meter impression required to be
affixed thereto by this article, or
(4) Being a retail dealer or subjobber in this state, has in
his possession
tobacco products or containers or packages of
cigarettes tobacco products not bearing the stamps or meterimpression herein required to be affixed thereto or, whoever
fails to produce on demand by the commissioner invoices of all
cigarettes tobacco products purchased or received by him within
two years prior to such demand, unless upon satisfactory proof it
is shown that such nonproduction is due to providential or other
causes beyond his control, or
(5) If any wholesale dealer shall sell
cigarettes tobacco
products to any person in this state other than to another
wholesaler, subjobber or retail dealer and no person in this
state other than a wholesaler or subjobber shall sell
cigarettes
tobacco products to a retail dealer. It
shall be is unlawful and
a violation of this article for any retail
cigarette tobacco
products dealer to purchase or acquire
cigarettes tobacco
products from any person other than a wholesaler or subjobber.
The original wholesaler who purchases unstamped
cigarettes
tobacco products from the manufacturer is liable for the excise
tax and the affixing of the required stamps, or meter
impressions, or
(6) If any person, firm or corporation, who is not a
wholesaler of tobacco products, as provided by this article,
shall have in his possession within the state
either tobacco
products with a fair market value in excess of thirty dollars, or
more than twenty packages of cigarettes,
as the case may be,
which do not
bearing bear cigarette tobacco products tax paid
indicia of this state, stamps or meter impressions, such
possession shall be presumed to be for the purpose of evading thepayment of the taxes imposed or due thereon, or
(7) Whoever violates any of the provisions of this
subsection or any lawful rule or regulation promulgated by the
commissioner under authority of article ten of this code
shall be
is guilty of a misdemeanor, and, upon conviction thereof, shall
be fined not less than three hundred dollars nor more than five
thousand dollars, or imprisoned in the county jail for not more
than one year, or both
, in the discretion of the court fined and
imprisoned.
(c) Whoever falsely or fraudulently makes, forges, alters or
counterfeits any stamps or meter impressions prescribed, or
defined, by the provisions of this article, or its related rules
and regulations, and any person who knowingly and willfully
makes, causes to be made, purchases, receives or has in his
possession, any device for forging or counterfeiting any stamp or
meter impression, or has in his possession, any stamps not
properly issued by the commissioner or his agent or deputy or
tampers with or alters any stamping device authorized by the
commissioner, or uses more than once any stamp or meter
impression provided for and required by this article for the
purpose of evading the tax hereby imposed, shall be guilty of a
felony, and, upon conviction thereof, shall be sentenced to pay
a fine of not less than five thousand dollars nor more than ten
thousand dollars and imprisoned in the penitentiary for a term of
not less than one year nor more than five years.
(d) Whenever the commissioner or any of his deputies oremployees authorized by him or any peace officer of this state
for the purpose
shall discover discovers any
cigarettes tobacco
products subject to tax as provided by this article and upon
which the tax has not been paid as herein required, such
cigarettes tobacco products shall thereupon be deemed to be
contraband, and the commissioner, or such deputy or employee or
any peace officer of this state, is hereby authorized and
empowered forthwith to seize and take possession of such
cigarettes, tobacco products without a warrant, and such
cigarettes tobacco products shall be forfeited to the state, and
the commissioner shall within a reasonable time thereafter sell
such forfeited
cigarettes tobacco products: Provided, That such
seizure and sale shall not be deemed to relieve any person from
fine or imprisonment as provided herein for violation of any
provisions of this article. Such sale may be made in any county
the tax commissioner deems most convenient and economical.
Notice of such sale shall be published as a Class I legal
advertisement in compliance with the provisions of article three,
chapter fifty-nine of this code, and the publication area for
such publication shall be the county wherein such seizure was
made and the county wherein the sale is to take place. Notice
shall be published at least five days prior to the sale. All
taxes and penalties collected under the provisions of this
section shall be paid into the state treasury and treated as
other taxes collected under this article.
(e) Magistrates shall have concurrent jurisdiction with anyother courts having jurisdiction for the trial of all
misdemeanors arising under this article.
§11-17-20. Transportation of unstamped tobacco products;
unstamped tobacco products in vending machines; forfeitures
and sales of tobacco products and equipment; criminal
sanctions.
Every person who
shall transport transports cigarettes
tobacco products not stamped as required by this article upon the
public highways, waterways, airways, roads or streets of this
state shall have in his actual possession invoices or delivery
tickets for such
cigarettes tobacco products which shall show the
true name and the complete and exact address of the consignor or
seller, the true name and complete and exact address of the
consignee, or purchaser, the quantity and brands of the
cigarettes tobacco products transported and the true name and
complete and exact address of the person who has or shall assume
payment of the West Virginia state tax, or the tax, if any, of
the state or foreign country at the point of ultimate
destination:
Provided, That any common carrier which has issued
a bill of lading for a shipment of
cigarettes tobacco products
and is without notice to itself or to any of its agents or
employees that said
cigarettes tobacco products are not stamped
as required by this article shall be deemed to have complied with
this article and the vehicle or vessel in which said
cigarettes
tobacco products are being transported shall not be subject to
confiscation hereunder. In the absence of such invoices,delivery tickets or bills of lading, as the case may be, the
cigarettes tobacco products so transported, the vehicle or vessel
in which the
cigarettes tobacco products are being transported
and any paraphernalia or devices used in connection with the
unstamped
cigarettes tobacco products, are declared to be
contraband goods and may be seized by the commissioner, his
agents or employees or by any peace officer of the state without
a warrant.
If Any person
who transports unstamped
cigarettes tobacco
products in violation of this section
he shall be is guilty of a
misdemeanor, and, upon conviction thereof, shall be fined not
less than three hundred dollars nor more than five thousand
dollars, or imprisoned in the county jail not more than one year,
or both fined and imprisoned.
If unstamped
cigarettes tobacco products are found in any
vending machine, both the
cigarettes tobacco products and the
vending machine shall be contraband goods and may be seized by
the commissioner, at the discretion of the commissioner, his
agents or employees or any peace officer of this state, without
a warrant.
Cigarettes Tobacco products and vending machines seized
under this section shall be forthwith sold in the manner provided
hereinafter in this section and such sale shall not relieve the
owner of the sold personal property of any action by the
commissioner for violations of any other sections of this
article.
The
commissioners commissioner shall immediately, after any
seizure made pursuant to this section, institute a proceeding for
the confiscation thereof in the circuit court of the county in
which the seizure is made. The court may proceed in a summary
manner and may direct confiscation to the commissioner:
Provided, That any person claiming to be the holder of security
interest in any vehicle or vessel, or vending machine, the
disposition of which is provided for above may present his
petition so alleging and be heard, and in the event it appears to
the court that the property was unlawfully used by a person other
than such claimant, and if the said claimant acquired his
security interest in good faith and without knowledge that the
vehicle or vessel or vending machine, was going to be so used,
the court shall either waive forfeiture in favor of such claimant
and order the vehicle or vessel or vending machine returned or
delivered to such claimant or if it is found that the value
thereof exceeds the amount of the claim, the court shall order
payment of the amount of the claim out of the proceeds of the
sale.
NOTE: The purpose of this bill is to impose special excise
taxes on all tobacco products, which are defined in the bill as
including cigarettes, cigars, snuff, chewing tobacco, other
tobacco, cigarette papers and pipes. Instead of the current tax
of $0.17 a package on cigarettes, this bill imposes a flat
percentage tax on the sale or use of all tobacco products, based
upon their wholesale price. Beginning July 1, 1993, the tax
would be 25%; on July 1, 1995, 30%; on July 1, 1997, 35%; and on
July 1, 1999, 40%. The proceeds from the tax would be dedicated
to (a) programs administered by the Commissioner of the Bureau of
Public Health, relating to the prevention, control, education andcessation of tobacco use--20% of the tax; (b) research
administered by the commissioner on the general prevention and
control of disease--20%; and (c) 60% paid into the general
revenue fund of the state.
All provisions now applicable to the cigarette excise tax,
its collection and enforcement, are made applicable to the tax on
tobacco products created by this bill.
The bill also repeals the prohibition against municipalities
and other governmental subdivisions from levying taxes on the
sale of cigarettes or, in this bill, tobacco products.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
§11-17-3 has been completely rewritten; therefore, strike-
throughs and underscoring have been omitted.