HB1477 (2020) Detail

Relative to the rate of the tobacco tax for cigarettes.


HB 1477-FN - AS INTRODUCED

 

 

2020 SESSION

20-2613

10/03

 

HOUSE BILL 1477-FN

 

AN ACT relative to the rate of the tobacco tax for cigarettes.

 

SPONSORS: Rep. Horrigan, Straf. 6

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill increases the rate of the tobacco tax applicable to cigarettes sold at retail.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2613

10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to the rate of the tobacco tax for cigarettes.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Tobacco Tax; Rate Increased.  Amend RSA 78:2, I to read as follows:

I.  A tax on all cigarettes and little cigars sold at retail in this state is imposed upon the consumer at the rate of [$1.78] $1.90 for each package containing 20 cigarettes or little cigars or at a rate proportional to such rate for packages containing other than 20 cigarettes or little cigars.

2  Effective Date.  This act shall take effect July 1, 2020.

 

LBAO

20-2613

11/12/19

 

HB 1477-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the rate of the tobacco tax for cigarettes.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$0

$0

$0

$0

Funding Source:

  [ X ] General            [ X ] Education            [   ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill will amend RSA 78:2 to increase the Tobacco Tax rate for each package of 20 cigarettes or little cigars from $1.78 to $1.90 or a proportional rate for packages containing other than 20 cigarettes or little cigars.  The Tobacco Tax rate is a direct tax on the consumer at retail which is pre-collected and paid by a wholesaler.  The wholesaler affixes stamps purchased from the Department to each package to demonstrate the taxes have been paid.  This bill takes effect July 1, 2020 with no specific applicability date for the tax.  Therefore, the Department assumes the rate change will not apply to stamps purchased before July 1, 2020, even if they are affixed to packages sold at retail on or after July 1, 2020.  The Department assumes wholesalers  will purchase the same amount of stamps in FY 2021 as they did in FY 2019.  Increasing the tax rate from $1.78 to $1.90 is estimated to increase Tobacco Tax revenue by approximately $12.4 million in FY 2021.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

Links

HB1477 at GenCourtMobile
HB1477 Discussion

Action Dates

Date Body Type
Jan. 16, 2020 House Hearing
Feb. 4, 2020 House Exec Session
March 3, 2020 House Exec Session

Bill Text Revisions

HB1477 Revision: 7163 Date: Dec. 3, 2019, 10:16 a.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Ways and Means HJ 1 P. 23
Jan. 16, 2020 Public Hearing: 01/16/2020 10:00 am LOB 202
Feb. 4, 2020 ==RECESSED== Executive Session: 02/04/2020 01:00 pm LOB 202
Feb. 12, 2020 Subcommittee Work Session: 02/12/2020 01:30 pm LOB 202
Feb. 18, 2020 Full Committee Work Session: 02/18/2020 01:00 pm LOB 202
March 3, 2020 Executive Session: 03/03/2020 01:00 pm LOB 202