Senate Bill 58 Summary

• Removes the October 31, 2021 expiration date on the 50-cent per cigar tax cap that began November 1, 2012, making the cap permanent.

• Establishes reimbursement provisions for stamping agents implementing digital cigarette tax stamps, including 5.55% reimbursement of equipment costs for 17 months following digital stamp implementation.

• Allows stamping agents to claim additional compensation for case packers, conveyors, and related equipment costs necessary to affix digital stamps to cigarette packages.

• Limits total reimbursement for qualified equipment costs to $60,000 across all stamping agents combined.

• Maintains existing tobacco tax rates: 37.5 mills per cigarette (base rate), plus additional increments totaling 62.5 mills per cigarette, and 32% of wholesale price for other tobacco products (subject to 50-cent per cigar cap).