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MI HB5687

Bill

Status

Introduced

5/24/2016

Primary Sponsor

Henry Yanez

Click for details

Origin

House of Representatives

98th Legislature

AI Summary

  • Extends Michigan's tobacco tax to include electronic smoking devices, effective October 1, 2016, at a rate of 32% of wholesale price.

  • Adds "electronic smoking device" to the definition of "smokeless tobacco" beginning October 1, 2016, subjecting e-cigarettes and vaping devices to the same tax treatment as other smokeless tobacco products.

  • Directs revenue from electronic smoking device taxes beginning October 1, 2016 to: (1) first responder presumed coverage fund ($3,000,000 minimum), (2) smoking prevention programs (18%), and (3) the Healthy Michigan plan state match (remaining balance).

  • Expands remote sales regulations to apply to all tobacco products (not just cigarettes), requiring age verification through government-issued ID and labeling of packages with product warnings.

  • Provides tax compensation for stamping agents implementing digital stamp technology, including reimbursement for equipment costs over 17 months and ongoing compensation until full cost recovery.

Legislative Description

Taxation; tobacco; tax on certain electronic smoking devices; modify, and earmark revenue. Amends secs. 2, 7, 11 & 12 of 1993 PA 327 (MCL 205.422 et seq.).

Taxation: tobacco

Last Action

Bill Electronically Reproduced 05/24/2016

5/25/2016

Committee Referrals

Regulatory Reform5/24/2016

Full Bill Text

No bill text available