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H0378..................................................by REVENUE AND TAXATION CIGARETTE TAX - Amends and adds to existing law to increase the rate of the cigarette tax to sixty-two cents per package of twenty cigarettes; to revise the distribution of moneys derived from the tax; to reduce the percentage that wholesalers are compensated for affixing stamps on packages of cigarettes; to revise the distribution formula for certain cigarette tax moneys; to provide a floor stocks tax for packages of cigarettes held in stock by a wholesaler on June 1, 2003; and to provide when the tax is due and payable. 03/19 House intro - 1st rdg - to printing 03/20 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-seventh Legislature First Regular Session - 2003IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 378 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO TAXATION OF CIGARETTES; AMENDING SECTION 63-2506, IDAHO CODE, TO 3 INCREASE THE RATE OF THE CIGARETTE TAX AND TO REVISE THE DISTRIBUTION OF 4 CERTAIN MONEYS DERIVED FROM THE TAX; AMENDING SECTION 63-2509, IDAHO CODE, 5 TO REDUCE THE PERCENTAGE THAT WHOLESALERS ARE COMPENSATED FOR AFFIXING 6 STAMPS ON PACKAGES OF CIGARETTES AND TO MAKE A TECHNICAL CORRECTION; 7 AMENDING SECTION 63-2520, IDAHO CODE, TO REVISE THE DISTRIBUTION FORMULA 8 FOR CERTAIN CIGARETTE TAX MONEYS; AMENDING CHAPTER 25, TITLE 63, IDAHO 9 CODE, BY THE ADDITION OF A NEW SECTION 63-2531, IDAHO CODE, TO PROVIDE A 10 FLOOR STOCKS TAX FOR PACKAGES OF CIGARETTES HELD IN STOCK BY A WHOLESALER 11 ON JUNE 1, 2003, AND TO PROVIDE WHEN THE TAX IS DUE AND PAYABLE; DECLARING 12 AN EMERGENCY AND PROVIDING EFFECTIVE DATES. 13 Be It Enacted by the Legislature of the State of Idaho: 14 SECTION 1. That Section 63-2506, Idaho Code, be, and the same is hereby 15 amended to read as follows: 16 63-2506. IMPOSITION OF TAX. A tax upon the purchase, storage, use, con- 17 sumption, handling, distribution or wholesale sale of cigarettes is hereby 18 imposed at the rate ofone and four-tenths cent (1.4) for each cigarette or19twenty-eightsixty-two cents (2862) per package of twenty (20) cigarettes, 20 which tax shall be paid by the wholesaler, and collected by the state tax com- 21 mission. Five and three hundred sixty-two thousandths cents (5.362) of the 22 tax collected per package of twenty (20) cigarettes shall be subject to appro- 23 priation to the public school income fund to be utilized to facilitate and 24 provide substance abuse programs in the public school system. Five and three 25 hundred sixty-two thousandths cents (5.362) of the tax collected per package 26 of twenty (20) cigarettes shall be subject to appropriation to the department 27 of juvenile corrections for distribution to the counties to be utilized for 28 county juvenile probation services. Appropriated funds shall be distributed 29 quarterly to the counties based upon the percentage the population of the 30 county bears to the population of the state as a whole. The remaining moneys 31 collected and those moneys not appropriated under the provisions of this sec- 32 tion shall be distributed as specified in section 63-2520, Idaho Code. 33 SECTION 2. That Section 63-2509, Idaho Code, be, and the same is hereby 34 amended to read as follows: 35 63-2509. COMPENSATION FOR AFFIXING STAMPS. Wholesalers shall be allowed 36 as compensation for affixing stamps,five per centtwo and four-tenths percent 37 (52.4%) of the face value of the stamps purchased by them. 38 SECTION 3. That Section 63-2520, Idaho Code, be, and the same is hereby 39 amended to read as follows: 2 1 63-2520. DISTRIBUTION OF MONEYS COLLECTED. Revenues received from the 2 taxes imposed by this chapter, and any revenues received from licenses, per- 3 mits, penalties, interest, or deficiency additions, shall be distributed by 4 the tax commission as follows: 5 (a) An amount of money shall be distributed to the state refund account 6 sufficient to pay current refund claims. All refunds authorized under this 7 chapter by the commission shall be paid through the state refund account, and 8 those moneys are continuously appropriated. 9 (b) The balance remaining with the state treasurer after deducting the 10 amount described in paragraph (a) above shall be distributed as follows: 11 (1)43.3%Sixteen and thirteen-hundredths percent (16.13%) of such bal- 12 ance shall be distributed to the permanent building account created by 13 section 57-1108, Idaho Code. 14 (2)1%Three hundred and seventy-six thousandths of one percent (0.376%) 15 of such balance shall be distributed to the central tumor registry 16 account. The amount of money so distributed to the central tumor registry 17 account shall not exceed the fiscal year's appropriation, and at such time 18 as the appropriation has been distributed to the central tumor registry 19 account during any fiscal year, all such distributions in excess of the 20 appropriation shall be made instead to the general fund of the state of 21 Idaho. 22 (3)2.5%Nine hundred and forty-two thousandths of one percent (0.942%) 23 of such balance shall be distributed to the cancer control account created 24 by section 57-1702, Idaho Code. Revenues received in the cancer control 25 account shall be paid over to the state treasurer by the state tax commis- 26 sion to be distributed as follows: 27 (i) Such amounts as are appropriated for purposes specified in sec- 28 tion 57-1702, Idaho Code, shall be expended as appropriated; 29 (ii) Any balance remaining in the cancer control account on June 30 30 of any fiscal year after the amounts withdrawn by appropriation have 31 been deducted, shall be reserved for transfer to the general fund on 32 July 1 and the state controller shall order such transfer. 33 (4) All remaining moneys shall be distributed to the general fund of the 34 state of Idaho. 35 SECTION 4. That Chapter 25, Title 63, Idaho Code, be, and the same is 36 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 37 ignated as Section 63-2531, Idaho Code, and to read as follows: 38 63-2531. FLOOR STOCKS TAX. (1) In addition to the tax imposed by section 39 63-2506, Idaho Code, there is hereby imposed a one (1) time tax at the rate of 40 thirty-four cents (34) per package of twenty (20) cigarettes on all ciga- 41 rettes to which stamps have been affixed and which are held in stock by a 42 wholesaler at 12:01 a.m. on June 1, 2003. 43 (2) The tax imposed by this section shall be due and payable to the state 44 tax commission on the due date of the cigarette tax return due under this 45 chapter and shall be reported on such return. The tax shall be subject to all 46 the collection, enforcement and administrative provisions of this chapter. 47 SECTION 5. An emergency existing therefor, which emergency is hereby 48 declared to exist, Sections 1, 2 and 4 of this act shall be in full force and 49 effect on and after June 1, 2003. Section 3 of this act shall be in full force 50 and effect on and after July 1, 2003.
STATEMENT OF PURPOSE RS 13175 This legislation increases the cigarette tax rate from $0.28 per 20 cigarette pack to $0.62 per 20 cigarette pack effective June 1, 2003. It makes adjustments to the distribution formula to cause all additional net revenue generated by this rate increase to go to the General Fund, while holding all other recipients of cigarette tax distributions harmless. The compensation for affixing stamps is reduced from 5% to 2.4%. FISCAL IMPACT Increases General Fund revenue $28.7 million beginning in FY 2004. CONTACT Name: Brian Whitlock Agency: Office of the Governor Phone: 334-2100 Statement of Purpose/Fiscal Impact H 378