HB 1510-FN-A – AS INTRODUCED
2008 SESSION
09/01
HOUSE BILL 1510-FN-A
AN ACT redefining tobacco products and increasing the tax on tobacco products other than cigarettes.
SPONSORS: Rep. W. Chase, Ches 1; Rep. E. Merrick, Coos 2
This bill redefines tobacco products for purposes of the tobacco tax and increases the tax on tobacco products other than cigarettes.
The bill also establishes a tobacco use prevention and cessation program fund and designates the increase in the tax on tobacco products other than cigarettes to such 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2558
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT redefining tobacco products and increasing the tax on tobacco products other than cigarettes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tobacco Tax; Definitions. Amend RSA 78:1, XIV to read as follows:
XIV. “Tobacco products” means cigarettes, cigars, loose tobacco, [and] smokeless tobacco, and snuff.
2 Tax Imposed on Tobacco Products Other Than Cigarettes. Amend RSA 78:7-c to read as follows:
78:7-c Tax Imposed on Tobacco Products Other Than Cigarettes. A tax upon the retail consumer is hereby imposed on tobacco products other than cigarettes at a rate of [19] 60 percent of the wholesale sales price. The tax under this section [may] shall be rounded up to the [nearest] next whole cent if the commissioner determines that the amount of tax would not thereby be made materially disproportionate. No such tax is imposed on any transactions, the taxation of which by this state is prohibited by the Constitution of the United States. The commissioner shall determine the amount of revenue produced by any tax rate imposed under this section which is over 19 percent and shall certify such amount to the state treasurer for deposit in the tobacco use prevention and cessation program fund established under RSA 126-K:15, II.
3 Applicability. Section 2 of this act shall apply to all persons licensed under RSA 78:2. Such persons shall inventory all taxable tobacco products other than cigarettes 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, 2008 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 and Cessation Program; Fund. Amend RSA 126-K:15 to read as follows:
126-K:15 Tobacco Use Prevention and Cessation Program.
I. There is hereby established in the department of health and human services the tobacco use prevention and cessation program, which shall be administered with funds appropriated to the department for such purpose, and which shall include but not be limited to:
[I.](a) Tobacco use prevention community programs and grants.
[II.](b) Tobacco use prevention school programs and grants.
[III.](c) Tobacco use prevention state-wide programs and grants.
[IV.](d) Tobacco use cessation programs.
[V.](e) Tobacco use prevention and cessation counter marketing.
[VI.](f) Evaluation of tobacco control initiatives.
[VII.](g) Administration and enforcement.
II. There is hereby established in the office of the state treasurer the tobacco use prevention and cessation program fund which shall be nonlapsing and continually appropriated to the department of health and human services for the purposes of paragraph I. Moneys certified by the commissioner under RSA 78:7-c shall be deposited in the tobacco use prevention and cessation program fund.
5 New Subparagraph; Special Fund Established. Amend RSA 6:12, I(b) by inserting after subparagraph (268) the following new subparagraph:
(269) Moneys deposited in the tobacco use prevention and cessation program fund established under RSA 126-K:15, II.
6 Effective Date. This act shall take effect July 1, 2008.
LBAO
08-2558
11/28/07
HB 1510-FN-A - FISCAL NOTE
AN ACT redefining tobacco products and increasing the tax on tobacco products other than cigarettes.
FISCAL IMPACT:
The Department of Revenue Administration has determined this bill will increase state general fund unrestricted revenue by $426,787 and state restricted revenue by $4,468,000 in FY 2009 and each year thereafter. There will be no fiscal impact on county and local revenues or state, county, and local expenditures
METHODOLOGY:
The Department of Revenue Administration (DRA) states this bill adds cigars and snuff to the definition of taxable tobacco products, increases the tax on tobacco products other than cigarettes and establishes a tobacco use prevention and cessation program fund. DRA determined that restricted tobacco use prevention and cessation program revenue would increase by $4,468,000 and general fund revenue would increase by $426,787 beginning in FY 2009. The Department calculated these increases by assuming a July 1, 2008 effective date, the sales level of smokeless tobacco products currently taxed would remain constant at the FY 2007 level, cigars and snuff sales would add 25% to smokeless tobacco product sales based on the state of Maine’s experience, and the tax after the first 19% would be deposited into the tobacco use prevention and cessation program. The general fund revenue increase represents the 19% tax on cigar and snuff sales that were added to the taxable definition. The Department further states that the costs of administering this change could be absorbed within the Department’s existing budget.