HB2370 Summary

• Little cigars weighing not more than three pounds per thousand are taxed at the same rate and manner as cigarettes under Sections 301-325 of Oklahoma law, with taxes paid in the same manner as cigarette taxes.

• Additional tax levies are imposed on cigars weighing more than three pounds per thousand: $0.01 per cigar for those priced at or under $0.04, $10.00 per thousand for those priced over $0.04 under Section 402-1, and $50.00 per thousand under new Section 402-4.

• Tax revenues are apportioned by the Oklahoma Tax Commission to multiple funds including Health Employee and Economy Improvement Act Revolving Fund (22.06%), Oklahoma Health Care Authority Medicaid Program Fund (26.38%), education, trauma care, cancer treatment, and other health and educational programs.

• Section 402-2 relating to additional tax on tobacco products is repealed.

• The act becomes effective July 1, 2017, with an emergency declaration allowing immediate effect upon passage and approval.