Revision: Dec. 3, 2019, 10:16 a.m.
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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.
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
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| 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 | |||
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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