2005 SESSION
09/10
HOUSE BILL 94-FN-A
AN ACT requiring a discount to wholesalers on cash purchases of tobacco tax stamps.
SPONSORS: Rep. Jasper, Hills 27; Rep. Griffin, Rock 4, Rep. C. Hamm, Merr 4; Rep. Hammond, Graf 11
This bill requires the commissioner of revenue administration to provide a discount to wholesale tobacco distributors who purchase tobacco tax stamps on a cash basis.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-0145
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT requiring a discount to wholesalers on cash purchases of tobacco tax stamps.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tobacco Tax Stamps; Discount for Wholesalers on Cash Purchases. Amend RSA 78:9, I to read as follows:
I. The commissioner shall adopt rules pursuant to RSA 541-A relative to the design and denomination of stamps to be secured by the commissioner for affixing to packages of tobacco products as evidence of the payment of the tax imposed by this chapter. The commissioner shall sell such stamps on a cash basis to each licensed wholesaler at a discount of one cent below the amount of the tax established by RSA 78:7 to encourage each wholesaler to affix such stamps and compensate wholesalers for affixing such stamps. The commissioner shall sell such stamps to each licensed wholesaler. The commissioner may permit a licensed wholesaler to pay for such stamps within 30 days after the date of purchase, provided a bond satisfactory to the commissioner in an amount not less than the sale price of such stamps shall have been filed with the commissioner, conditioned upon the payment of such stamps. The commissioner shall keep accurate records of all stamps sold to each wholesaler and shall pay over all receipts from the sale of such stamps to the state treasurer daily.
2 Effective Date. This act shall take effect July 1, 2005.
LBAO
05-0145
11/19/04
HB 94-FN-A - FISCAL NOTE
AN ACT requiring a discount to wholesalers on cash purchases of tobacco tax stamps.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will decrease state unrestricted general fund revenue by $1,354,050 in FY 2006 and each year thereafter, and decrease restricted education trust fund revenue by $553,062 in FY 2006 and each year thereafter. There is no fiscal impact on state, county and local expenditures or county and local revenue.
METHODOLOGY:
The Department estimates that based on stamp sales of 190,711,200 in FY 2004, a $.01 discount for licensed wholesalers to affix tobacco stamps on products will cost $1,907,112 in FY 2006 and each year thereafter. Since tobacco taxes are recorded in both the general fund and education trust fund, the cost of the this discount will be split 71% ($.37/$.52) to the state unrestricted general fund and 29% ($.15/$.52) to the education trust fund. The Department assumed a zero growth rate in future years. The Department states that the changes in this bill can be administered within their existing budget.