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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 - 2003
IN 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 of one and four-tenths cent (1.4) for each cigarette or
19 twenty-eight sixty-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 cent two 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