HB120 Summary

• Adds a 50 mill ($.50) per cigarette user fee on top of existing state tobacco taxes under the Medicaid Paygo Act.

• All revenue from the new 50 mill user fee on cigarettes shall be deposited into the State General Fund and allocated to the Medicaid Program.

• The user fee applies to cigarettes made of tobacco or any tobacco substitute and is collected through the existing stamp system used for state tobacco taxes.

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