HB83: HB83 Revenue and taxation; increase tax rate on each pack of cigarettes

Georgia currently taxes cigarettes at 37 cents per pack under the state's tobacco and vaping tax law (O.C.G.A. § 48-11-2). This bill would raise that rate to 57 cents per pack, a 20 cent increase, while leaving tax rates on cigars, smokeless tobacco, and vapor products unchanged. The bill states that the General Assembly intends for the state proceeds from the 20 cent increase to be set aside each year to address healthcare issues affecting Georgia residents, and requires the Department of Revenue to report the amount of that money to legislative appropriations committees on request. The new 57 cent rate would take effect as soon as the Governor signs the bill or it becomes law without a signature. A second section repeats the same rate change to keep it in place after December 31, 2029, when it becomes effective again under a separate provision of the tax code.

• Raises the excise tax on a pack of 20 cigarettes from 37 cents to 57 cents, and proportionally for other pack sizes.
• States the General Assembly's intent that revenue from the 20 cent increase be appropriated annually for healthcare issues affecting Georgia residents.
• Requires the Department of Revenue to report, on request from House or Senate appropriations chairs, how much of that revenue was collected in the prior fiscal year.
• Duplicates the same 57 cent rate change in a second code provision that takes effect December 31, 2029, so the higher rate continues after that date.
• Leaves tax rates on cigars, loose or smokeless tobacco, and vapor products unchanged.
• Sets the main rate increase effective upon the Governor's signature or the bill becoming law without signature, with the 2029 provision effective December 31, 2029.

Cigarette buyers and smokers in Georgia, who would pay more per pack; retailers and distributors who collect and remit the tax; the Department of Revenue, which must track and report the revenue; and state healthcare programs that could receive the earmarked funds.

Smokers would pay 20 cents more per pack of cigarettes at the register. The bill signals that the added revenue is meant to help fund healthcare programs for Georgia residents, though the appropriation itself would still need to happen through the separate state budget process each year.

• Section 1 revises O.C.G.A. § 48-11-2(a)(3), raising the cigarette tax from 37 cents to 57 cents per pack of 20, with a matching pro rata rate for other pack sizes.
• Section 1 adds subsection (a.1) expressing intent that proceeds from the 20 cent increase be appropriated annually for healthcare issues affecting Georgia residents.
• Section 1 requires the Department of Revenue to report the amount of such proceeds to the House or Senate Appropriations Committee chairperson upon request.
• Section 2 makes the identical rate increase and healthcare intent language effective again in the version of the code section that takes effect December 31, 2029.
• Section 3 sets the main effective date as the date of the Governor's approval or the bill becoming law without approval, except Section 2 takes effect December 31, 2029.
• Section 4 repeals any conflicting laws.

1. 2025-01-27House Second Readers (House)
2. 2025-01-17House First Readers (House)
3. 2025-01-16House Hopper (House)

• Michelle Au (D, HD-050)Primary sponsor
• Ron Stephens (R, HD-164)
• Lee Hawkins (R, HD-027)
• Gerald Greene (R, HD-154)
• Debbie Buckner (D, HD-137)

• cigarette tax
• tobacco tax increase
• healthcare funding
• state revenue
• excise taxes