HB27 Summary

• Increases the state excise tax on cigarettes from 21.25 mills per cigarette (approximately $0.425 per pack) to 37.5 mills per cigarette (approximately $0.75 per pack).

• All revenue from the increased cigarette tax shall be deposited into the State General Fund.

• The increased tax is exclusive and preempts any additional local taxes or license fees on cigarettes and tobacco products imposed after May 18, 2004; existing local taxes grandfathered in remain operative.

• Tax collection and stamping procedures remain unchanged, with wholesalers, distributors, and retailers responsible for collecting the tax from consumers and affixing required stamps to tobacco products.

• The act becomes effective on the first day of the third month following its passage and approval by the Governor.