H.B. 404 Enrolled

USE OF CIGARETTE TAX
1998 GENERAL SESSION
STATE OF UTAH
Sponsor: Steve Barth
Patrice Arent

AN ACT RELATING TO REVENUE AND TAXATION; CREATING A RESTRICTED
ACCOUNT KNOWN AS THE "CIGARETTE TAX RESTRICTED ACCOUNT;"
REQUIRING $250,000 OF THE REVENUES GENERATED BY THE 1997 CIGARETTE
TAX INCREASE TO BE DEPOSITED ANNUALLY INTO THE ACCOUNT AND USED BY
THE DEPARTMENT OF HEALTH FOR A TOBACCO PREVENTION AND CONTROL
MEDIA CAMPAIGN TARGETED TOWARDS CHILDREN; MAKING TECHNICAL
CHANGES; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-14-204, as last amended by Chapter 279, Laws of Utah 1997
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-14-204 is amended to read:
59-14-204. Tax basis -- Rate -- Future increase -- Restricted account -- Use of
revenues.
(1) There is levied a tax upon the sale, use, or storage of cigarettes in the state.
(2) The rates of the tax levied under Subsection (1) are:
(a) 2.575 cents on each cigarette, for all cigarettes weighing not more than three pounds
per thousand cigarettes; and
(b) 3.175 cents on each cigarette, for all cigarettes weighing in excess of three pounds per
thousand cigarettes.
(3) The tax levied under Subsection (1) shall be paid by the manufacturer, jobber,
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 in the account for a tobacco prevention
and control media campaign targeted towards children.
Section 2. Effective date.
This act takes effect on July 1, 1998.

- 2 -