HB84: HB84 Revenue and taxation; increase tax rate on consumable vapor products

25 LC 59 0024 House Bill 84 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 consumable vapor2 products; to provide that the proceeds derived from such increa se are intended to be3 appropriated for healthcare purposes; to provide for definition s; to provide for related4 matters; to provide for effective 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 48-11-1 , relating to definitions,9 by revising paragraphs (16) and (32) as follows:10 "(16) 'Closed system' means any disposable container which is prefilled and sealed by the11 manufacturer, not easily refillable or intended or designed to be refillable, and intended or12 used to dispense consumable vapor products by way of a vapor device that is intended or13 designed to be reused. Reserved."14 "(32) 'Open system' means any method or manner used to contain a consumable vapor15 product that is not a closed system. Reserved."16 H. B. 84 - 1 - 25 LC 59 0024 SECTION 2.17 Said chapter is further amended in Code Section 48-11-2, relati ng to excise tax imposed,18 rates for tobacco and vaping products, exemptions, collection a nd payment, and tax19 separately identified, by revising subsection (a) and adding a new subsection to read as20 follows:21 "(a) An excise tax, in addition to all other taxes of every kind imposed by law, is imposed22 upon the sale, receipt, purchase, possession, consumption, handling, distribution, or use of23 cigars, cigarettes, loose or smokeless tobacco, alternative nic otine products, and vapor24 products in this state at the following rates:25 (1) Little cigars: two and one-half mills each;26 (2) All cigars other than little cigars: 23 percent of the who lesale cost price, exclusive27 of any trade, cash, or other discounts or any promotion, advertising, display, or similar28 allowances;29 (3) Cigarettes: 37¢ per pack of 20 cigarettes and a like rate, pro rata, for other size30 packages;31 (4) Loose or smokeless tobacco: 10 percent of the wholesale cost price, exclusive of any32 trade, cash, or other discounts or any promotion, advertising, display, or similar33 allowances;34 (5) Consumable vapor products in a closed system: 5¢ per fluid milliliter;35 (6) Consumable vapor products in an open system: 7 15 percent of the wholesale cost36 price, exclusive of any trade, cash, or other discounts or any promotion, advertising,37 display, or similar allowances; and38 (7)(6) Vapor devices that contain any consumable vapor product at the time of sale and39 which are not designed or intended to be reused or refilled: 7 15 percent of the wholesale40 cost price, exclusive of any trade, cash, or other discounts or any promotion, advertising,41 display, or similar allowances.42 H. B. 84 - 2 - 25 LC 59 0024 (a.1) It is the intent of the General Assembly that the state proceeds derived from any43 increase on or after July 1, 2025, in the tax rates imposed pursuant to subsection (a) of this44 Code section are to be appropriated annually to address healthcare issues affecting Georgia45 residents. Upon request by the chairperson of the House Committee on Appropriations or46 Senate Appropriations Committee, the department shall report th e amount of such47 increased proceeds derived in the prior fiscal year."48 SECTION 3.49 Said chapter is further amended in said Code section, as effective on December 31, 2029, by50 revising subsection (a) and adding a new subsection to read as follows:51 "(a) An excise tax, in addition to all other taxes of every kind imposed by law, is imposed52 upon the sale, receipt, purchase, possession, consumption, handling, distribution, or use of53 cigars, cigarettes, loose or smokeless tobacco, alternative nic otine products, and vapor54 products in this state at the following rates:55 (1) Little cigars: two and one-half mills each;56 (2) All cigars other than little cigars: 23 percent of the who lesale cost price, exclusive57 of any trade, cash, or other discounts or any promotion, advertising, display, or similar58 allowances;59 (3) Cigarettes: 37¢ per pack of 20 cigarettes and a like rate, pro rata, for other size60 packages;61 (4) Loose or smokeless tobacco: 10 percent of the wholesale cost price, exclusive of any62 trade, cash, or other discounts or any promotion, advertising, display, or similar63 allowances;64 (5) Consumable vapor products in a closed system: 5¢ per fluid milliliter;65 (6) Consumable vapor products in an open system: 7 15 percent of the wholesale cost66 price, exclusive of any trade, cash, or other discounts or any promotion, advertising,67 display, or similar allowances; and68 H. B. 84 - 3 - 25 LC 59 0024 (7)(6) Vapor devices that contain any consumable vapor product at the time of sale and69 which are not designed or intended to be reused or refilled: 7 15 percent of the wholesale70 cost price, exclusive of any trade, cash, or other discounts or any promotion, advertising,71 display, or similar allowances.72 (a.1) It is the intent of the General Assembly that the state proceeds derived from any73 increase on or after July 1, 2025, in the tax rates imposed pursuant to subsection (a) of this74 Code section are to be appropriated annually to address healthcare issues affecting Georgia75 residents. Upon request by the chairperson of the House Committee on Appropriations or76 Senate Appropriations Committee, the department shall report th e amount of such77 increased proceeds derived in the prior fiscal year."78 SECTION 4.79 (a) Except as otherwise provided for in subsection (b) of this section, this Act shall become80 effective upon its approval by the Governor or upon its becoming law without such approval.81 (b) Section 3 of this Act shall become effective on December 31, 2029.82 SECTION 5.83 All laws and parts of laws in conflict with this Act are repealed.84 H. B. 84 - 4 -