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

25 LC 50 0959 House Bill 83 By: Representatives Au of the 50th, Stephens of the 164th, Hawkins of the 27th, Greene of the 154th, and Buckner of the 137th A BILL TO BE ENTITLED AN ACT To amend Chapter 11 of Title 48 of the Official Code of Georgia Annotated, relating to taxes1 on tobacco and vaping products, so as to increase the rate of t he tax on each pack of2 cigarettes; to provide that the proceeds derived from such incr ease are intended to be3 appropriated for healthcare purposes; to provide for related matters; to provide for effective4 dates; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Chapter 11 of Title 48 of the Official Code of Georgia Annotate d, relating to taxes on8 tobacco and vaping products, is amended in Code Section 48-11-2 , relating to excise tax9 imposed, rates for tobacco and vaping products, exemptions, collection and payment, and tax10 separately identified, by revising subsection (a) and adding a new subsection to read as11 follows:12 "(a) An excise tax, in addition to all other taxes of every kind imposed by law, is imposed13 upon the sale, receipt, purchase, possession, consumption, handling, distribution, or use of14 cigars, cigarettes, loose or smokeless tobacco, alternative nic otine products, and vapor15 products in this state at the following rates:16 H. B. 83 - 1 - 25 LC 50 0959 (1) Little cigars: two and one-half mills each;17 (2) All cigars other than little cigars: 23 percent of the who lesale cost price, exclusive18 of any trade, cash, or other discounts or any promotion, advertising, display, or similar19 allowances;20 (3) Cigarettes: 37¢ 57¢ per pack of 20 cigarettes and a like rate, pro rata, for other size21 packages;22 (4) Loose or smokeless tobacco: 10 percent of the wholesale cost price, exclusive of any23 trade, cash, or other discounts or any promotion, advertising, display, or similar24 allowances;25 (5) Consumable vapor products in a closed system: 5¢ per fluid milliliter;26 (6) Consumable vapor products in an open system: 7 percent of the wholesale cost price,27 exclusive of any trade, cash, or other discounts or any promoti on, advertising, display,28 or similar allowances; and29 (7) Vapor devices that contain any consumable vapor product at the time of sale and30 which are not designed or intended to be reused or refilled: 7 percent of the wholesale31 cost price, exclusive of any trade, cash, or other discounts or any promotion, advertising,32 display, or similar allowances.33 (a.1) It is the intent of the General Assembly that the state proceeds derived from 20¢ of34 the per pack tax on cigarettes levied pursuant to paragraph (3) of subsection (a) of this35 Code section are to be appropriated annually to address healthcare issues affecting Georgia36 residents. Upon request by the chairperson of the House Committee on Appropriations or37 Senate Appropriations Committee, the department shall report the amount of such proceeds38 derived in the prior fiscal year."39 SECTION 2.40 Said chapter is further amended in said Code section, as effective on December 31, 2029, by41 revising subsection (a) and adding a new subsection to read as follows:42 H. B. 83 - 2 - 25 LC 50 0959 "(a) An excise tax, in addition to all other taxes of every kind imposed by law, is imposed43 upon the sale, receipt, purchase, possession, consumption, handling, distribution, or use of44 cigars, cigarettes, loose or smokeless tobacco, alternative nic otine products, and vapor45 products in this state at the following rates:46 (1) Little cigars: two and one-half mills each;47 (2) All cigars other than little cigars: 23 percent of the who lesale cost price, exclusive48 of any trade, cash, or other discounts or any promotion, advertising, display, or similar49 allowances;50 (3) Cigarettes: 37¢ 57¢ per pack of 20 cigarettes and a like rate, pro rata, for other size51 packages;52 (4) Loose or smokeless tobacco: 10 percent of the wholesale cost price, exclusive of any53 trade, cash, or other discounts or any promotion, advertising, display, or similar54 allowances;55 (5) Consumable vapor products in a closed system: 5¢ per fluid milliliter;56 (6) Consumable vapor products in an open system: 7 percent of the wholesale cost price,57 exclusive of any trade, cash, or other discounts or any promoti on, advertising, display,58 or similar allowances; and59 (7) Vapor devices that contain any consumable vapor product at the time of sale and60 which are not designed or intended to be reused or refilled: 7 percent of the wholesale61 cost price, exclusive of any trade, cash, or other discounts or any promotion, advertising,62 display, or similar allowances.63 (a.1) It is the intent of the General Assembly that the state proceeds derived from 20¢ of64 the per pack tax on cigarettes levied pursuant to paragraph (3) of subsection (a) of this65 Code section are to be appropriated annually to address healthcare issues affecting Georgia66 residents. Upon request by the chairperson of the House Committee on Appropriations or67 Senate Appropriations Committee, the department shall report the amount of such proceeds68 derived in the prior fiscal year."69 H. B. 83 - 3 - 25 LC 50 0959 SECTION 3.70 (a) Except as otherwise provided for in subsection (b) of this section, this Act shall become71 effective upon its approval by the Governor or upon its becoming law without such approval.72 (b) Section 2 of this Act shall become effective on December 31, 2029.73 SECTION 4.74 All laws and parts of laws in conflict with this Act are repealed.75 H. B. 83 - 4 -