Second Substitute H.B. 27

1

CIGARETTES - TAX INCREASE AND REGULATION
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Jordan Tanner
5 AN ACT RELATING TO REVENUE AND TAXATION; INCREASING THE TAX LEVIED
6 ON CIGARETTES; h [ CREATING A RESTRICTED ACCOUNT TO BE USED FOR THE
7 DRUG ABUSE RESISTANCE EDUCATION PROGRAM AND THE MCGRUFF HOUSE
8 PROGRAM; ] h PROVIDING PURPOSES FOR WHICH THE LEGISLATURE h [SHALL ]
8a MAY h
9 PROVIDE FUNDING FOR APPROPRIATING REVENUES GENERATED BY THE
10 CIGARETTE TAX INCREASE; ENACTING UNCODIFIED MATERIAL; MAKING
11 TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
12 This act affects sections of Utah Code Annotated 1953 as follows:
13 AMENDS:
14 59-14-204, as last amended by Chapter 266, Laws of Utah 1991
15 This act enacts uncodified material.
16 Be it enacted by the Legislature of the state of Utah:
17 Section 1. Section 59-14-204 is amended to read:
18 59-14-204. Tax basis -- Rate -- Future increase.
19 (1) There is levied a tax upon the sale, use, or storage of cigarettes in the state.
20 (2) The rates of the tax levied under Subsection (1) are:
21 (a) [1.325] h [1.775 ] S [2.325] 2.575 s h cents on each cigarette, for all cigarettes weighing not more
21a than three
22 pounds per thousand cigarettes; and
23 (b) [1.925] h [ 2.375 ] S [2.925] 3.175 s h cents on each cigarette, for all cigarettes weighing in excess
23a of three
24 pounds per thousand cigarettes.
25 (3) The tax levied under Subsection (1) shall be paid by the manufacturer, jobber,
26 distributor, wholesaler, retailer, user, or consumer.
Text Box

Amend on 2_goldenrod February 20, 1997 27 (4) The tax rates specified in this section shall be increased by the commission by the same

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1 amount as any future reduction in the federal excise tax on cigarettes.
2 h [(5) (a) There is created within the General Fund a restricted account known as the
3 "Cigarette Tax Restricted Account."
4 (b) Beginning on July 1, 1997, $175,000 of the revenues generated by the increase in the
5 cigarette tax under this section enacted during the 1997 Annual General Session shall annually be
6 deposited into the account.
7 (c) The Department of Public Safety shall expend the funds in the restricted account for
8 the Utah Council for Crime Prevention's Drug Abuse Resistance Education program and McGruff
9 House program.
10 (d) The Department of Public Safety shall annually report to the Legislature regarding the
11 use of the funds and the resulting impact on the Drug Abuse Resistance Education program and
12 the McGruff House program. ] h
13 Section 2. Purposes required to be funded by increase in cigarette tax.
14 In appropriating the revenues generated by an increase in the cigarette tax in this bill, h [ other
15 than the revenues deposited into the Cigarette Tax Restricted Account under Subsection
16 59-14-204(5), ] h the Legislature shall h [fund the following: ] APPROPRIATE h
17 h [(1) ] $250,000 TO A h tobacco prevention and control h [; ] MEDIA CAMPAIGN
17a TARGETED TOWARDS CHILDREN. h
18 h [(2) substance abuse prevention and treatment within the Division of Substance Abuse
19 created in Section 62A-8-103; and
20 (3) the Utah Comprehensive Health Insurance Pool created in Section 31A-29-104. ] h
21 Section 3. Effective date.
22 This act takes effect on July 1, 1997.

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*HB0027S2*