HB 1478 Summary

• Increases cigarette tax by 36 mills per cigarette effective January 1, 2013, with revenues deposited in the state general revenue fund for public education purposes only.

• Imposes new taxes on roll-your-own tobacco (25% of manufacturer's invoice price) and other tobacco products (15% of manufacturer's invoice price) effective January 1, 2013, with revenues directed to public education.

• Specifies that tobacco tax revenues constitute new and additional funding for public education and cannot replace existing education funding as of July 1, 2012.

• Prohibits expenditure of tobacco tax revenues on activities involving abortion services, human cloning, or prohibited human research as defined in section 196.1127.

• Redefines "cigarette" to allow for up to four pounds per thousand cigarettes (increased from three pounds) and designates operators of roll-your-own machines as manufacturers subject to tax.

• Modifies the wholesaler discount for cigarette tax stamps from three percent to one-half cent per stamp.

• Requires voter approval at the November 2012 general election to become effective.