2003 Legislation
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HOUSE BILL NO. 73 – Cigarette/tobacco tax, increase/use

HOUSE BILL NO. 73

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Daily Data Tracking History



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

Bill Text


                                                                        
                                                                        
  ||||              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 / Fiscal Impact



                       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