Fiscal Note
HB0219S01 - Tobacco Tax Increase
State Impact:
Enactment of this bill increases the tax on cigarettes, moist snuff, and other tobacco products. This increases revenue to the General Fund by $25,900,000 in FY 2010. Each year the Economic and Statistical Unit of the Utah State Tax Commission will calculate the new tax rate based upon the average tax rate in 44 states and multiplied by a constant. Absent tax changes in other states, this bill increases revenue in FY 2011 by $30,600,000 in that the tax changes in FY 2010 increase the national average.
| Funding Source | FY 2009 Approp. | FY 2010 Approp. | FY 2011 Approp. | FY 2009 Revenue | FY 2010 Revenue | FY 2011 Revenue |
| General Fund | $0 | $0 | $0 | $0 | $25,900,000 | $30,600,000 |
| Total | $0 | $0 | $0 | $0 | $25,900,000 | $30,600,000 |
Individual, Business and/or Local Impact:
Local government sales tax revenue will increase by a total of $26,000 in FY 2010 and $31,000 in FY 2011. Businesses dealing in tobacco products will experience a decrease in revenue. Individuals will see the average price per pack increase to the national average in FY 2010. In FY 2011, individuals will see the price per pack increase or decrease depending upon the cigarette tax policy in other states.
| 2/27/2009, 4:17:54 PM, Lead Analyst: Young, T. | Office of the Legislative Fiscal Analyst |