59-14-204. Tax basis -- Rate -- Future increase -- Restricted account -- Use of
revenues.
(1) Except for cigarettes described under Subsection 59-14-210(3), there is levied a tax
upon the sale, use, storage, or distribution of cigarettes in the state.
(2) The rates of the tax levied under Subsection (1) are:
(a) 3.475 cents on each cigarette, for all cigarettes weighing not more than three pounds
per thousand cigarettes; and
(b) 4.075 cents on each cigarette, for all cigarettes weighing in excess of three pounds per
thousand cigarettes.
(3) Except as otherwise provided under this chapter, the tax levied under Subsection (1)
shall be paid by any person who is the manufacturer, jobber, importer, distributor, wholesaler,
retailer, user, or consumer.
(4) The tax rates specified in this section shall be increased by the commission by the
same amount as any future reduction in the federal excise tax on cigarettes.
(5) (a) There is created within the General Fund a restricted account known as the
"Cigarette Tax Restricted Account."
(b) Beginning on July 1, 1998, $250,000 of the revenues generated by the increase in the
cigarette tax under this section enacted during the 1997 Annual General Session shall be annually
deposited into the account.
(c) The Department of Health shall expend the funds deposited in the account under
Subsection (5)(b) for a tobacco prevention and control media campaign targeted towards
children.
(d) The following revenue generated from the tax increase imposed under Subsection (1)
during the 2002 General Session shall be deposited in the Cigarette Tax Restricted Account:
(i) 22% of the revenue to be annually appropriated to the Department of Health for
tobacco prevention, reduction, cessation, and control programs;
(ii) 15% of the revenue to be annually appropriated to the University of Utah Health
Sciences Center for the Huntsman Cancer Institute for cancer research; and
(iii) 21% of the revenue to be annually appropriated to the University of Utah Health
Sciences Center for medical education at the University of Utah School of Medicine.
(e) Any balance remaining in the Cigarette Tax Restricted Account at the end of the
fiscal year shall be appropriated during the next fiscal year for the purposes set forth in
Subsections (5)(d)(i) through (5)(d)(iii) in proportion to the amount of revenue deposited into the
account for each purpose.
(f) The Legislature shall give particular consideration to appropriating any revenues
resulting from the change in tax rates under Subsection (2) adopted during the 2002 Annual
General Session and not otherwise appropriated pursuant to Subsection (5)(d) to enhance
Medicaid provider reimbursement rates and medical coverage for the uninsured.
(g) Any program or entity that receives funding under Subsection (5)(d) shall provide an
annual report to the Health and Human Services Interim Committee no later that September 1 of
each year. The report shall include:
(i) the amount funded;
(ii) the amount expended;
(iii) a description of the effectiveness of the program; and
(iv) if the program is a tobacco cessation program, the report required in Section
51-9-203.
Amended by Chapter 382, 2008 General Session
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Last revised: Thursday, May 28, 2009