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H.B. 27

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CIGARETTES - TAX INCREASE AND REGULATION

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1997 GENERAL SESSION

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STATE OF UTAH

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Sponsor: Jordan Tanner

5    AN ACT RELATING TO REVENUE AND TAXATION; INCREASING THE TAX LEVIED
6    ON CIGARETTES; PROVIDING INTENT LANGUAGE STATING THE PURPOSES FOR
7    WHICH h [ REVENUES GENERATED BY THE CIGARETTE TAX INCREASE SHOULD
7a     BE
8    USED ] THE LEGISLATURE MAY CONSIDER PROVIDING FUNDING FOR IN APPROPRIATING
8a     REVENUES GENERATED BY THE CIGARETTE TAX INCREASE h ; ENACTING UNCODIFIED
8b    MATERIAL; MAKING TECHNICAL CHANGES; AND
9    PROVIDING AN EFFECTIVE DATE.
10    This act affects sections of Utah Code Annotated 1953 as follows:
11    AMENDS:
12         59-14-204, as last amended by Chapter 266, Laws of Utah 1991
13    This act enacts uncodified material.
14    Be it enacted by the Legislature of the state of Utah:
15        Section 1. Section 59-14-204 is amended to read:
16         59-14-204. Tax basis -- Rate -- Future increase.
17        (1) There is levied a tax upon the sale, use, or storage of cigarettes in the state.
18        (2) The rates of the tax levied under Subsection (1) are:
19        (a) [1.325] 2.575 cents on each cigarette, for all cigarettes weighing not more than three
20    pounds per thousand cigarettes; and
21        (b) [1.925] 3.175 cents on each cigarette, for all cigarettes weighing in excess of three
22    pounds per thousand cigarettes.
23        (3) The tax levied under Subsection (1) shall be paid by the manufacturer, jobber,
24    distributor, wholesaler, retailer, user, or consumer.
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25        (4) The tax rates specified in this section shall be increased by the commission by the same
26    amount as any future reduction in the federal excise tax on cigarettes.
27        Section 2. Legislative intent.
27a         h IN APPROPRIATING THE REVENUES GENERATED BY AN INCREASE IN THE CIGARETTE
27b     TAX IN THIS BILL, THE LEGISLATURE MAY CONSIDER FUNDING FOR THE FOLLOWING PURPOSES:
27c         (1) TOBACCO PREVENTION AND CONTROL;
27d         (2) SUBSTANCE ABUSE PREVENTION AND TREATMENT;
27e         (3) THE MEDICAID PROGRAM AS PROVIDED IN SECTION 26-36-102;
27f         (4) FOR THE UTAH COMPREHENSIVE HEALTH INSURANCE POOL CREATED IN SECTION
27g     31A-29-106;
27h         (5) MEDICAID ORGAN TRANSPLANTS;
27i         (6) THE SCHOOL NURSING SERVICES INCENTIVE PROGRAM CREATED IN SECTION
27j     53A-11-204;
27k         (7) THE WILDLAND FIRE SUPPRESSION FUND CREATED IN SECTION 65A-8-6.1;
27l         (8) THE DIVISION OF YOUTH CORRECTIONS' COMMUNITY ALTERNATIVES PROGRAMS;
27m         (9) THE CONTROLLED SUBSTANCES PRESCRIPTION DATABASE;
27n         (10) MEDICAL COSTS OF INMATES UNDER SUPERVISION OF THE DEPARTMENT OF
27o     CORRECTIONS; AND
27p         (11) OTHER TOBACCO PROGRAMS, HEALTH RELATED PROGRAMS, OR BOTH. h









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1         h [It is the intent of the Legislature that the revenues generated by an increase in the
1a     cigarette
2    tax in this bill be used during fiscal year 1997-98 for the following purposes:
3        (1) tobacco prevention and control;
4        (2) substance abuse prevention and treatment;
5        (3) for the purposes described in:
6        (a) Section 26-36-102; and
7        (b) Section 31A-29-102;
8        (4) Medicaid organ transplants; and
9        (5) school nurses. ] h
10        Section 3. Effective date.
11        This act takes effect on July 1, 1997.




Legislative Review Note
    as of 12-6-96 4:06 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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lilac-January 29, 1997

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