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H0404...............................................by REVENUE AND TAXATION
CIGARETTES - TAX - Amends existing law to increase the cigarette tax to
$1.00 per package of 20 cigarettes and to revise the distribution of the
revenues; and to revise the compensation for affixing stamps.
04/03 House intro - 1st rdg - to printing
Rpt prt - to 2nd rdg
04/04 2nd rdg - to 3rd rdg
04/07 To Gen Ord
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 404
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TOBACCO TAXATION AND TOBACCO RELATED HEALTH PROGRAMS; AMENDING
3 SECTION 63-2506, IDAHO CODE, TO INCREASE THE TAX ON CIGARETTES FROM AND
4 AFTER A DESIGNATED DATE AND TO REVISE THE DISTRIBUTION OF MONEYS RAISED
5 FROM THE TAX; AMENDING SECTION 63-2509, IDAHO CODE, TO REVISE THE COMPEN-
6 SATION FOR AFFIXING STAMPS FROM AND AFTER A DESIGNATED DATE AND TO MAKE A
7 TECHNICAL CORRECTION; AMENDING SECTION 63-2520, IDAHO CODE, TO REVISE DIS-
8 TRIBUTION OF THE TAX ON TOBACCO; REPEALING SECTIONS 63-2506, 63-2509 AND
9 63-2520, IDAHO CODE; AMENDING CHAPTER 25, TITLE 63, IDAHO CODE, BY THE
10 ADDITION OF NEW SECTIONS 63-2506, 63-2509 AND 63-2520, IDAHO CODE, TO PRO-
11 VIDE FOR THE IMPOSITION OF A TAX ON THE PURCHASE, STORAGE, USE, CONSUMP-
12 TION, HANDLING, DISTRIBUTION OR WHOLESALE SALE OF CIGARETTES, TO PROVIDE
13 COMPENSATION FOR AFFIXING STAMPS AND TO PROVIDE FOR DISTRIBUTION OF
14 MONEYS; AND PROVIDING EFFECTIVE DATES.
15 Be It Enacted by the Legislature of the State of Idaho:
16 SECTION 1. That Section 63-2506, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 63-2506. IMPOSITION OF TAX. From and after July 1, 2003, a A tax upon the
19 purchase, storage, use, consumption, handling, distribution or wholesale sale
20 of cigarettes is hereby imposed at the rate of one and four-tenths five cents
21 (1.45) for each cigarette or twenty-eight cents one dollar (28 $1.00) per
22 package of twenty (20) cigarettes, which tax shall be paid by the wholesaler,
23 and collected by the state tax commission. Proceeds of the tax imposed shall
24 be distributed as follows:
25 (1) Five cents (5) of the tax collected per package of twenty (20) ciga-
26 rettes shall be subject to appropriation Four million eight hundred four thou-
27 sand dollars ($4,804,000) per year is continuously appropriated and shall be
28 distributed to the public school income fund to be utilized to facilitate and
29 provide substance abuse programs in the public school system.
30 (2) Five cents (5) of the tax collected per package of twenty (20) ciga-
31 rettes shall be subject to appropriation Four million eight hundred four thou-
32 sand dollars ($4,804,000) per year is continuously appropriated and shall be
33 distributed to the department of juvenile corrections for distribution to the
34 counties to be utilized for county juvenile probation services. Appropriated
35 funds shall be distributed quarterly to the counties based upon the percentage
36 the population of the county bears to the population of the state as a whole.
37 (3) The remaining moneys collected and those moneys not appropriated
38 under the provisions of this section shall be distributed as specified in sec-
39 tion 63-2520, Idaho Code.
40 SECTION 2. That Section 63-2509, Idaho Code, be, and the same is hereby
41 amended to read as follows:
2
1 63-2509. COMPENSATION FOR AFFIXING STAMPS. Wholesalers shall be allowed
2 as compensation for affixing stamps, five per cent one and one-half percent
3 (1.5%) of the face value of the stamps purchased by them for the time period
4 on and after July 1, 2003.
5 SECTION 3. That Section 63-2520, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 63-2520. DISTRIBUTION OF MONEYS COLLECTED. Revenues received from the
8 taxes imposed by this chapter, and any revenues received from licenses, per-
9 mits, penalties, interest, or deficiency additions, shall be distributed by
10 the tax commission as follows:
11 (a) An amount of money shall be distributed to the state refund account
12 sufficient to pay current refund claims. All refunds authorized under this
13 chapter by the commission shall be paid through the state refund account, and
14 those moneys are continuously appropriated.
15 (b) The balance remaining with the state treasurer after deducting the
16 amount described in paragraph (a) above shall be distributed as follows:
17 (1) 43.3% of such balance Seven million four hundred eighty-eight thou-
18 sand dollars ($7,488,000) per year is continuously appropriated and shall
19 be distributed to the permanent building account created by section
20 57-1108, Idaho Code.
21 (2) 1% of such balance One hundred seventy-three thousand dollars
22 ($173,000) per year is continuously appropriated and shall be distributed
23 to the central tumor registry account. The amount of money so distributed
24 to the central tumor registry account shall not exceed the fiscal year's
25 appropriation, and at such time as the appropriation has been distributed
26 to the central tumor registry account during any fiscal year, all such
27 distributions in excess of the appropriation shall be made instead to the
28 general fund of the state of Idaho.
29 (3) 2.5% of such balance Four hundred thirty-two thousand dollars
30 ($432,000) per year is continuously appropriated and shall be distributed
31 to the cancer control account created by section 57-1702, Idaho Code. Rev-
32 enues received in the cancer control account shall be paid over to the
33 state treasurer by the state tax commission to be distributed as follows:
34 (i) Such amounts as are appropriated for purposes specified in sec-
35 tion 57-1702, Idaho Code, shall be expended as appropriated;
36 (ii) Any balance remaining in the cancer control account on June 30
37 of any fiscal year after the amounts withdrawn by appropriation have
38 been deducted, shall be reserved for transfer to the general fund on
39 July 1 and the state controller shall order such transfer.
40 (4) All remaining moneys shall be distributed to the general fund of the
41 state of Idaho.
42 SECTION 4. That Sections 63-2506, 63-2509 and 63-2520, Idaho Code, be,
43 and the same are hereby repealed.
44 SECTION 5. That Chapter 25, Title 63, Idaho Code, be, and the same is
45 hereby amended by the addition thereto of NEW SECTIONS, to be known and desig-
46 nated as Sections 63-2506, 63-2509 and 63-2520, Idaho Code, and to read as
47 follows:
48 63-2506. IMPOSITION OF TAX. A tax upon the purchase, storage, use, con-
49 sumption, handling, distribution or wholesale sale of cigarettes is hereby
50 imposed at the rate of one and four-tenths cents (1.4) for each cigarette or
3
1 twenty-eight cents (28) per package of twenty (20) cigarettes, which tax
2 shall be paid by the wholesaler, and collected by the state tax commission.
3 Five cents (5) of the tax collected per package of twenty (20) cigarettes
4 shall be subject to appropriation to the public school income fund to be uti-
5 lized to facilitate and provide substance abuse programs in the public school
6 system. Five cents (5) of the tax collected per package of twenty (20) cig-
7 arettes shall be subject to appropriation to the department of juvenile cor-
8 rections for distribution to the counties to be utilized for county juvenile
9 probation services. Appropriated funds shall be distributed quarterly to the
10 counties based upon the percentage the population of the county bears to the
11 population of the state as a whole. The remaining moneys collected and those
12 moneys not appropriated under the provisions of this section shall be distrib-
13 uted as specified in section 63-2520, Idaho Code.
14 63-2509. COMPENSATION FOR AFFIXING STAMPS. Wholesalers shall be allowed
15 as compensation for affixing stamps, five percent (5%) of the face value of
16 the stamps purchased by them.
17 63-2520. DISTRIBUTION OF MONEYS COLLECTED. Revenues received from the
18 taxes imposed by this chapter, and any revenues received from licenses, per-
19 mits, penalties, interest, or deficiency additions, shall be distributed by
20 the tax commission as follows:
21 (a) An amount of money shall be distributed to the state refund account
22 sufficient to pay current refund claims. All refunds authorized under this
23 chapter by the commission shall be paid through the state refund account, and
24 those moneys are continuously appropriated.
25 (b) The balance remaining with the state treasurer after deducting the
26 amount described in paragraph (a) above shall be distributed as follows:
27 (1) 43.3% of such balance shall be distributed to the permanent building
28 account created by section 57-1108, Idaho Code.
29 (2) 1% of such balance shall be distributed to the central tumor registry
30 account. The amount of money so distributed to the central tumor registry
31 account shall not exceed the fiscal year's appropriation, and at such time
32 as the appropriation has been distributed to the central tumor registry
33 account during any fiscal year, all such distributions in excess of the
34 appropriation shall be made instead to the general fund of the state of
35 Idaho.
36 (3) 2.5% of such balance shall be distributed to the cancer control
37 account created by section 57-1702, Idaho Code. Revenues received in the
38 cancer control account shall be paid over to the state treasurer by the
39 state tax commission to be distributed as follows:
40 (i) Such amounts as are appropriated for purposes specified in sec-
41 tion 57-1702, Idaho Code, shall be expended as appropriated;
42 (ii) Any balance remaining in the cancer control account on June 30
43 of any fiscal year after the amounts withdrawn by appropriation have
44 been deducted, shall be reserved for transfer to the general fund on
45 July 1 and the state controller shall order such transfer.
46 (4) All remaining moneys shall be distributed to the general fund of the
47 state of Idaho.
48 SECTION 6. Sections 1, 2 and 3 of this act shall be in full force and
49 effect on and after July 1, 2003. Sections 4 and 5 of this act shall be in
50 full force and effect on and after July 1, 2004.
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STATEMENT OF PURPOSE
RS13263C2
The purpose of this legislation is to increase the tax on
cigarettes to five cents per cigarette and one dollar per package
of twenty cigarettes. Compensation for affixing stamps 1.5%.
Sunsets June 30,2004.
FISCAL IMPACT
For fiscal year 2003 and each fiscal year thereafter, the
increase on the tax for cigarettes is expected to generate
$53,500,000.
Contact
Name: Representative Field(18)
Phone: 332-1125
STATEMENT OF PURPOSE/FISCAL NOTE H 404