HB 39 Summary

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

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

• The state tax increase is exclusive and preempts additional local cigarette taxes, though existing local taxes imposed on or before May 18, 2004 remain in effect.

• Local governments may collect their own cigarette taxes through affixed stamps but are not required to use Department of Revenue stamp services.

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