HB96: HB96 Revenue and taxation; pack of cigarettes; increase rate of tax

Georgia currently taxes cigarettes at 37 cents per pack, one of the lowest rates in the country. This bill would rewrite that part of Georgia's tobacco tax law (O.C.G.A. § 48-11-2) to immediately raise the tax to $1.37 per pack of 20 cigarettes, with a proportional rate for other package sizes. Starting January 1, 2026, the tax rate would no longer be a fixed dollar amount set by the legislature. Instead, the state revenue commissioner would reset it each year to match the national average cigarette tax, so Georgia's rate would automatically rise or fall along with what other states charge. The bill also repeals any conflicting laws, a standard closing provision.

• Raises the excise tax on a pack of 20 cigarettes from 37 cents to $1.37, with a matching pro rata increase for other package sizes.
• Directs the state revenue commissioner to reset the cigarette tax rate each year starting January 1, 2026 to match the national average cigarette tax.
• Removes the fixed statutory tax rate in favor of an annually adjusted rate tied to what other states charge.
• Repeals any existing state laws that conflict with the new tax rate rules.

Cigarette smokers and buyers in Georgia, retailers who sell cigarettes and collect the tax, tobacco wholesalers and distributors, and the Georgia Department of Revenue, which would calculate and publish the new rate each year.

Georgians who buy cigarettes would pay a dollar more per pack immediately, and the price could shift again every January as the rate tracks the national average instead of staying fixed by statute, affecting household budgets and state tax revenue.

• Section 1 amends O.C.G.A. § 48-11-2(a)(3) to change the per-pack cigarette tax from 37 cents to $1.37, with a proportional rate for packages of other sizes.
• Section 1 also requires the tax to be reset annually beginning January 1, 2026 to equal the national average cigarette tax as determined by the commissioner.
• Section 2 repeals any conflicting laws, a standard provision clearing away inconsistent statutes.

1. 2025-01-28House Second Readers (House)
2. 2025-01-27House First Readers (House)
3. 2025-01-17House Hopper (House)

• Samuel Park (D, HD-107)Primary sponsor
• Carolyn Hugley (D, HD-141)
• Michelle Au (D, HD-050)
• Floyd Griffin (D, HD-149)
• Jasmine Clark (D, HD-108)
• Long Tran (D, HD-080)

• cigarette tax
• tobacco regulation
• state revenue
• excise taxes