Senate Bill No. 255
(By Senators Tomblin (Mr. President) and Sprouse
By Request of the Executive)
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[Introduced January 22, 2004; referred to the Committee on
Finance.]
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A BILL to amend and reenact §11-17-3 of the code of West Virginia,
1931, as amended, relating to increasing rates of excise tax
on cigarettes and on other tobacco products; specifying
purpose for tax increase; and providing effective date.
Be it enacted by the Legislature of West Virginia:
That §11-17-3 of the code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 17. TOBACCO PRODUCTS EXCISE TAX ACT.
§11-17-3. Levy of tax; ratio; dedication of proceeds.
(a)
Tax on cigarettes. -- For the purpose of providing revenue
for the general revenue fund of the state, an excise tax is hereby
levied and imposed on sales of cigarettes at the rate of fifty-five
cents on each twenty cigarettes or in like ratio on any part
thereof:
Provided, That effective the first day of June, two
thousand four, this tax shall be seventy-five cents on each twenty cigarettes or in like ratio on any part thereof and the additional
revenue attributable to this rate increase shall be used to help
fund the state medicaid program and for tobacco education. Only
one sale of the same article shall be used in computing the amount
of tax due under this subsection.
(b)
Tax on tobacco products other than cigarettes. - Effective
the first day of January, two thousand two, an excise tax is hereby
levied and imposed on the sale or use of, other than cigarettes,
tobacco products at a rate equal to seven percent of the wholesale
price of each article or item of tobacco product other than
cigarettes 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:
Provided, That effective the
first day of June, two thousand four, this tax shall be at a rate
equal to twenty percent of the wholesale price of each article or
item of tobacco product other than cigarettes 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. Only one sale of the same article shall be
used in computing the amount of tax due under this subsection.
Revenues received from this tax shall be deposited into the general
revenue fund
and the additional revenue attributable to this rate
increase shall be used to help fund the state medicaid program and
for tobacco education.
(c) Effective date. --The changes set forth herein to sections
three and four, article seventeen, chapter eleven of the code of
West Virginia shall become effective the first day of May, two
thousand three.
NOTE: The purpose of this bill is to increase the rates of
excise tax on cigarettes and on other tobacco products and earmark
the additional revenue to help fund the State Medicaid program and
for tobacco education.
Strike-throughs indicate language that would be stricken from
present law, and underscoring indicates new language that would be
added.
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