HB 1515-FN-A – AS INTRODUCED
2006 SESSION
09/10
HOUSE BILL 1515-FN-A
AN ACT increasing the tobacco tax and dedicating certain tobacco tax revenues to the tobacco use prevention fund.
SPONSORS: Rep. Almy, Graf 11; Rep. Pilliod, Belk 5; Rep. Naro, Graf 7
This bill increases the tobacco tax and dedicates certain tobacco tax revenues to the tobacco use prevention fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2411
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT increasing the tobacco tax and dedicating certain tobacco tax revenues to the tobacco use prevention fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tobacco Tax Increased. Amend RSA 78:7 to read as follows:
78:7 Tax Imposed. A tax upon the retail consumer is hereby imposed at the rate of [$.80] $.85 for each package containing 20 cigarettes or at a rate proportional to such rate for packages containing more or less than 20 cigarettes, on all cigarettes sold at retail in this state. The payment of the tax shall be evidenced by affixing stamps to the smallest packages containing the cigarettes in which such products usually are sold at retail. The word “package” as used in this section shall not include individual cigarettes. No tax is imposed on any transactions, the taxation of which by this state is prohibited by the Constitution of the United States.
2 Distribution of Funds. Amend RSA 78:32 to read as follows:
78:32 Distribution of Funds.
I. The commissioner shall determine the additional amount of revenue produced by any additional tax in excess of 37 cents and less than 40 cents for each package containing 20 cigarettes or at a rate proportional to such rate for packages containing more or less than 20 cigarettes, on all tobacco products sold at retail in this state imposed by RSA 78:7 and shall certify such amount to the state treasurer by October 1 of each year for deposit in the [education trust fund established by RSA 198:39] tobacco use prevention fund established pursuant to RSA 126-K:15.
II.(a) The commissioner shall determine the additional amount of revenue produced by any additional tax in excess of 40 cents for each package containing 20 cigarettes or at a rate proportional to such rate for packages containing more or less than 20 cigarettes, on all tobacco products sold at retail in this state imposed by RSA 78:7 and shall certify such amount to the state treasurer by October 1 of each year for deposit in the education trust fund established by RSA 198:39.
[II.](b) The commissioner shall make quarterly estimates of the amount of additional revenues that will be produced by such increase in tax rate for the next fiscal year and shall certify such amount to the state treasurer for deposit in the education trust fund established by RSA 198:39. Such estimates shall be certified on June 1, September 1, December 1, and March 1 of each year.
3 Applicability. Section 1 of this act shall apply to all persons licensed under RSA 78:2. Such persons shall inventory all taxable tobacco products in their possession and file a report of such inventory with the department of revenue administration on a form prescribed by the commissioner within 20 days after the effective date of this act. The tax rate effective July 1, 2006 shall apply to such inventory and the difference, if any, in the amount paid previously on such inventory and the current effective rate of tax shall be paid with the inventory form. The inventory form shall be treated as a tax return for the purpose of computing penalties under RSA 21-J.
4 Tobacco Use Prevention Fund. Amend RSA 6:12, I(b)(67) to read as follows:
(67) Moneys received under RSA 126-K:15 and RSA 78:32, I, which shall be credited to the tobacco use prevention fund.
5 Tobacco Use Prevention Fund. Amend the introductory paragraph of RSA 126-K:15 to read is follows:
126-K:15 Tobacco Use Prevention Fund. There is hereby established in the office of the state treasurer a fund to be known as the tobacco use prevention fund. [Of tobacco settlement funds received by the state of New Hampshire, $3,000,000 annually, commencing with fiscal year 2001, shall be deposited in the tobacco use prevention fund.] Tobacco tax revenues shall be deposited annually in the fund, pursuant to RSA 78:32, I. Moneys in this fund shall be nonlapsing and continually appropriated, beginning with fiscal year 2001, for tobacco use prevention and cessation programs, which shall include but not be limited to:
6 Effective Date. This act shall take effect July 1, 2006.
LBAO
06-2411
11/30/05
HB 1515-FN-A - FISCAL NOTE
AN ACT increasing the tobacco tax and dedicating certain tobacco tax revenues to the tobacco use prevention fund.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will increase state restricted revenue by $5,974,226 in FY 2007 and each year thereafter. The Department of Health and Human Services indicates this bill will increase state restricted expenditures by $5,974,226 in FY 2007 and each year thereafter. There is no fiscal impact on county and local revenues or expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill increases the tobacco tax rate from $.80 to $.85, an increase of $.05 per pack, and dedicates tax collections on tax in excess of $.37 and less than $.40 to the tobacco use prevention fund. The Department determined the fiscal impact of this bill using the Department’s tobacco tax increase model. According to the model, the tax rate increase from $.80 to $.85 will increase in the tobacco tax deposited in the education trust fund by $5,974,226 per year. The tax in excess of $.37 and less than $.40 provision of this bill will reallocate $3,516,681 restricted revenue from the education trust fund to the tobacco use prevention fund. The Department states that these tax changes can be administered within their existing budget.
The Department of Health and Human Services states this bill will increase state restricted expenditures by $5,974,226, with the allocation between the tobacco use prevention fund and education trust, determined by the Department of Revenue Administration.