SB 117 Summary

• Department of Revenue must establish and determine minimum prices for cigarette sales at both wholesale and retail levels, replacing the previous "actual cost" standard.

• Wholesale minimum price is calculated using the formula: 1.02(M - D + T), where M is manufacturer's list price, D is trade discounts, and T is the full face value of all cigarette taxes.

• Retail minimum price is determined by multiplying the wholesale minimum price by 1.04.

• Wholesalers and retailers are prohibited from selling, advertising, or offering cigarettes below the department-determined minimum prices, or offering rebates and concessions that would effectively reduce prices below these minimums.

• Manufacturers must provide the department with current price lists for all cigarette brands and notify the department at least three days before any price change takes effect.