HB 1241-FN-A – AS INTRODUCED
2008 SESSION
09/10
HOUSE BILL 1241-FN-A
AN ACT requiring a discount to wholesalers on cash purchases of tobacco tax stamps.
SPONSORS: Rep. Marshall Quandt, Rock 13; Rep. Matthew Quandt, Rock 13
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.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2382
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
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, 2008.
LBAO
08-2382
10/25/07
HB 1241-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 states this bill will decrease Education Trust Fund revenue by $1,628,704 in FY 2009 and each year thereafter. There will be no fiscal impact on county and local revenue or state, county and local expenditures.
METHODOLOGY:
The Department of Revenue Administration indicates this bill will allow a discount of one cent below the amount of the tobacco tax to wholesalers who purchase tobacco stamps on a cash basis. The Department estimates tobacco tax revenue for FY 09 will be $175,900,000 based upon a tax rate of $1.08. The Department divided the projected revenue by 108 ($175,900,000/108) to determine the revenue generated by each cent. The Department states a one cent discount will decrease the Education Trust Fund revenue portion rather than the general fund portion by approximately $1,628,704.