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H0073..................................................................by RING
CIGARETTES/TOBACCO - TAX - Amends existing law to increase the rate of tax on
cigarettes from one and four-tenths cent to six cents per cigarette (from
twenty-eight cents to $1.28 per package of 20 cigarettes); to increase the
percentage of cigarette tax collected per package to the Public School Income
Fund; and to increase the tax on tobacco products from 35% to 135% of the
wholesale sales price.
01/14 House intro - 1st rdg - to printing
01/15 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 73
BY RING
1 AN ACT
2 RELATING TO CIGARETTE TAX AND TAX ON TOBACCO PRODUCTS; AMENDING SECTION
3 63-2506, IDAHO CODE, TO INCREASE THE RATE OF TAX ON CIGARETTES AND TO
4 INCREASE THE PERCENTAGE OF CIGARETTE TAX COLLECTED PER PACKAGE SUBJECT TO
5 APPROPRIATION TO THE PUBLIC SCHOOL INCOME FUND; AND AMENDING SECTION
6 63-2552, IDAHO CODE, TO PROVIDE FOR AN INCREASE IN THE RATE OF TAX ON CER-
7 TAIN TOBACCO PRODUCTS, TO DESIGNATE A DATE BY WHICH CERTAIN DISTRIBUTORS
8 OF TOBACCO PRODUCTS SHALL FILE REPORTS AND PAY IMPOSED TAXES AND TO MAKE
9 TECHNICAL CORRECTIONS.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 63-2506, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 63-2506. IMPOSITION OF TAX. A tax upon the purchase, storage, use, con-
14 sumption, handling, distribution or wholesale sale of cigarettes is hereby
15 imposed at the rate of one and four-tenths six cents (1.46) for each ciga-
16 rette or one dollar twenty-eight cents (28$1.20) per package of twenty (20)
17 cigarettes, which tax shall be paid by the wholesaler, and collected by the
18 state tax commission. Five Fifteen cents (15) of the tax collected per pack-
19 age of twenty (20) cigarettes shall be subject to appropriation to the public
20 school income fund to be utilized to facilitate and provide substance abuse
21 programs in the public school system. Five cents (5) of the tax collected
22 per package of twenty (20) cigarettes shall be subject to appropriation to the
23 department of juvenile corrections for distribution to the counties to be uti-
24 lized for county juvenile probation services. Appropriated funds shall be dis-
25 tributed quarterly to the counties based upon the percentage the population of
26 the county bears to the population of the state as a whole. The remaining
27 moneys collected and those moneys not appropriated under the provisions of
28 this section shall be distributed as specified in section 63-2520, Idaho Code.
29 SECTION 2. That Section 63-2552, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 63-2552. TAX IMPOSED -- RATE. (1) From and after July 1, 19722003, there
32 is levied and there shall be collected a tax upon the sale, use, consumption,
33 handling, or distribution of all tobacco products in this state at the rate of
34 one hundred thirty-five per cent percent (135%) of the wholesale sales price
35 of such tobacco products. Such tax shall be imposed at the time the distribu-
36 tor (a) brings, or causes to be brought, into this state from without the
37 state tobacco products for sale, (b) makes, manufactures, or fabricates
38 tobacco products in this state for sale in this state, or (c) ships or trans-
39 ports tobacco products to retailers in this state, to be sold by those
40 retailers.
41 (2) A floor stocks tax is hereby imposed upon every distributor of
2
1 tobacco products at the rate of one hundred thirty-five per cent percent
2 (135%) of the wholesale sales price of each tobacco product in his possession
3 or under his control on July 1, 19722003.
4 Each distributor, within twenty (20) days after July 1, 19722003, shall
5 file a report with the commission, in such form as the commission may pre-
6 scribe, showing the tobacco products on hand on July 1, 19722003, and the
7 amount of tax due thereon.
8 The tax imposed by this subdivision shall be due and payable within twenty
9 (20) days after July 1, 19722003, and thereafter shall bear interest at the
10 rate of one per cent percent (1%) per month.
STATEMENT OF PURPOSE
RS 12524
The purpose of this bill is to increase taxes on cigarettes
and increase the appropriation to the public schools for
substance abuse programs by amending section 62-2506 of the Idaho
Code, and increase taxes on other tobacco products by amending
section 63-2552 of the Idaho Code.
It is expected that these amendments will reduce the usage
of cigarettes and other tobacco products, especially among young
people.
FISCAL IMPACT
This bill will increase revenues to the general fund by
approximately by $71,000,000.
Contact
Name: Rep. Robert J. Ring
Rep. Wills
Rep. Henbest
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H73