HB 2372 Summary

• Imposes an additional excise tax of 75 mills (0.075 cents) per cigarette on cigarettes sold in Oklahoma, in addition to existing cigarette taxes.

• For September 1, 2017 through June 30, 2018, allocates the first $185 million in revenue annually as follows: 50% to Health Care Authority Enhancement Fund, 23% to Mental Health and Substance Abuse Services Enhancement Fund, 13.5% to Human Services Enhancement Fund, 5.4% to University Hospitals Enhancement Fund, 5.4% to Oklahoma State University Medical Authority Enhancement Fund, and 2.7% to Health Department Enhancement Fund; revenues exceeding $185 million go to General Revenue Fund.

• Beginning July 1, 2018, directs the first $185 million annually to the Health Care Enhancement Fund, with excess revenues going to General Revenue Fund.

• Creates seven new continuing funds exempt from fiscal year limitations: Health Care Authority Enhancement Fund, Mental Health and Substance Abuse Services Enhancement Fund, Human Services Enhancement Fund, University Hospitals Enhancement Fund, Oklahoma State University Medical Authority Enhancement Fund, Health Department Enhancement Fund, and Health Care Enhancement Fund.

• Prohibits cigarette excise tax stamps from being sold to wholesalers in excess of their monthly average purchases from the preceding calendar year, except when documented probable sales exceed prior year sales; requires a statewide referendum for approval under Oklahoma Constitution Article V, Section 33.