HB139 Summary

• Increases state tax on cigarettes from 21.25 mills to 62.50 mills per cigarette and raises taxes on other tobacco products including cigars, smoking tobacco, chewing tobacco, and snuff by approximately triple the current rates.

• Reduces the discount allowed to wholesalers and jobbers on tobacco stamp purchases from 7.5 percent to 2.7 percent.

• Distributes cigarette tax revenue with 66 percent to the General Fund and 34 percent allocated to welfare, health, mental health, industrial development bonds, and state parks programs.

• Allocates up to $2 million annually from remaining cigarette tax revenue to counties with local cigarette taxes to offset their administrative expenses, with remaining revenues directed to Medicaid services.

• Directs all revenue from taxes on non-cigarette tobacco products to the State General Fund.

• Effective date: July 1, 2015.