HB 83: Revenue and taxation; increase tax rate on each pack of cigarettes

Georgia currently taxes each pack of 20 cigarettes at 37 cents 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, with a proportional increase for other package sizes. Taxes on cigars, loose tobacco, and vapor products would stay the same. The bill adds a new provision stating the General Assembly's intent that the state proceeds from 20 cents of the per pack tax be appropriated each year to address healthcare issues affecting Georgia residents. The Department of Revenue would have to report how much money that 20 cents generated in the prior fiscal year if asked by the chairs of the House or Senate Appropriations Committees. The new rate would take effect as soon as the Governor signs the bill or it becomes law without his signature, and the same 57 cent rate is separately re-enacted to remain in place after December 31, 2029, when a related section of the tax code is scheduled to take a new form.

• Raises the state excise tax on a pack of 20 cigarettes from 37 cents to 57 cents, with a matching pro rata increase for other package sizes.
• States the General Assembly's intent that revenue from 20 cents of the new per pack tax be appropriated annually for healthcare issues affecting Georgia residents.
• Requires the Department of Revenue to report the amount of that healthcare-designated revenue from the prior fiscal year if requested by legislative appropriations chairs.
• Leaves tax rates on cigars, loose or smokeless tobacco, and vapor products unchanged.
• Re-enacts the same 57 cent cigarette tax rate in a version of the code section that takes effect December 31, 2029, so the increase carries forward.
• Sets the main tax increase to take effect as soon as the Governor signs the bill or it becomes law without his signature.

Cigarette buyers and smokers in Georgia, who would pay more per pack, and retailers and distributors who collect and remit the tax. The Department of Revenue would take on a new reporting duty, and the healthcare programs that receive the designated funding would be affected by how the legislature appropriates the new revenue.

Smokers in Georgia would pay 20 cents more per pack of cigarettes at checkout. The bill signals that lawmakers intend part of that new revenue to fund healthcare programs, though the actual spending decision would still depend on the annual state budget process.

• Section 1 amends O.C.G.A. § 48-11-2(a)(3) to raise the cigarette tax from 37 cents to 57 cents per pack of 20, with a pro rata rate for other sizes.
• Section 1 adds subsection (a.1) stating the intent that proceeds from 20 cents of the tax fund healthcare issues affecting Georgia residents, and requires Department of Revenue reporting on request.
• Section 2 makes the identical 57 cent rate and healthcare-intent language apply to the version of the code section that takes effect December 31, 2029.
• Section 3 sets the general effective date as the date of the Governor's approval or becoming law without approval, except Section 2 takes effect December 31, 2029.
• Section 4 repeals any laws that conflict with the Act.

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
• healthcare funding
• state revenue