Fiscal Note
SB0114 - Tobacco Tax Amendments
State Impact:
Enacting this bill will increase taxes on cigarettes, moist snuff, and other tobacco related products by $53,900,000 in FY 2010. In FY 2011, $54,440,000 will be raised by the tax increase, $53,900,000 of which is deposited into the Cigarette and Tobacco Products Restricted Account. The balance accrues to the General Fund. The bill also changes current earmarks; there is an increase to Huntsman Cancer Institute by $2,300,000; an increase to the University of Utah School of Medicine by $600,000; and a decrease to the Department of Health by $600,000. The remaining $51,600,000 must be spent on health-related programs.
| 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 | $0 | $540,000 |
| General Fund Restricted | $0 | $10,500,000 | $10,500,000 | $0 | $53,900,000 | $53,900,000 |
| Total | $0 | $10,500,000 | $10,500,000 | $0 | $53,900,000 | $54,440,000 |
Individual, Business and/or Local Impact:
Local government sales tax revenue will increase by a total of $60,000. Revenues to businesses dealing in tobacco products will decrease by $45,000,000. Individuals will see the the price per pack of cigarette increase by $1.30; the price per ounce of moist snuff increase by $1.40; and the tax rate for other tobacco products increase from 35% to 88%.
| 1/30/2009, 8:58:42 AM, Lead Analyst: Young, T. | Office of the Legislative Fiscal Analyst |