2001 -- S 0678
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LC02026
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2001
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A N A C T
RELATING TO TAXATION -- CIGARETTE TAX
It is enacted by the General Assembly as follows:
SECTION 1. Sections 44-20-12, 44-20-13 and 44-20-13.2 of the General Laws in Chapter 44-20 entitled "Cigarette Tax" are hereby amended to read as follows:
44-20-12. Tax imposed on cigarettes sold -- A tax is imposed on all cigarettes sold or held for sale in the state by any person, the payment of the tax to be evidenced by stamps affixed to the packages containing the cigarettes and as required by the administrator. Any cigarettes on which the proper amount of tax provided for in this chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under this chapter. The tax is at the rate of thirty-five and one half (35.5) sixty and one-half (60.5) mills for each cigarette.
44-20-13. Tax imposed on unstamped cigarettes -- A tax is imposed at the rate of thirty-five and one half (35.5) sixty and one-half (60.5) mills for each cigarette upon the storage or use within this state of any cigarettes not stamped in accordance with the provisions of this chapter in the possession of any person other than a licensed distributor or dealer, or a carrier for transit from without this state to a licensed distributor or dealer within this state.
44-20-13.2. Tax imposed on smokeless tobacco, cigars, and pipe tobacco products -- A tax is imposed on all smokeless tobacco, cigars, and pipe tobacco products sold or held for sale in the state by any person, the payment of the tax to be accomplished according to a mechanism established by the administrator, division of taxation, department of administration. Any tobacco product on which the proper amount of tax provided for in this chapter has been paid, payment being evidenced by a stamp, is not subject to a further tax under this chapter. The tax imposed by this section is at the rate of twenty percent (20%) of the wholesale cost of smokeless tobacco, cigars, and pipe tobacco products. The tax imposed by this section is at the rate of forty percent (40%) of the wholesale price of smokeless tobacco. The proceeds collected are paid into the general fund.
SECTION 2. Chapter 44-20 of the General Laws entitled "Cigarette Tax" is hereby amended by adding thereto the following section:
44-20-13.6. Proceeds of tax. -- The funds raised by increasing the cigarette tax under sections 44-20-12 and 44-20-13 shall be distributed in the following manner:
(1) To increase access to publicly funded insurance, seventy-one percent (71%) shall be appropriated to pay for health care for adults under chapter 40-8-6;
(2) To further the goals of the tobacco control program, twenty-nine percent (29%) shall be appropriated to fund the tobacco control program in chapter 23-71.
SECTION 3. This act shall take effect upon passage.
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LC02026
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- CIGARETTE TAX
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This act would amend the provisions of the general laws by increasing the tobacco tax to further fund the tobacco product manufacturer's settlement fund set forth in chapter 23-71.
This act would take effect upon passage.