HB 96: Revenue and taxation; pack of cigarettes; increase rate of tax

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 tax to $1.37 per pack, with a proportional rate for other package sizes. Beyond the immediate increase, the bill sets up an ongoing adjustment: starting January 1, 2026, and on the first day of every year after that, the state tax commissioner would reset the per-pack cigarette tax to match the national average state cigarette tax. This means the rate would no longer be a fixed number in the law but would automatically track what other states charge on average, changing year to year.

• Raises the state excise tax on a pack of 20 cigarettes from 37 cents to $1.37, with a proportional rate for other package sizes.
• Requires the tax commissioner to reset the cigarette tax rate each year starting January 1, 2026, to match the national average state cigarette tax.
• Repeats the annual reset every year after 2026 so the rate keeps following the national average rather than staying fixed.
• Repeals any existing Georgia laws that conflict with the new tax rate or annual adjustment process.

Cigarette retailers and wholesalers who collect and remit the tax, tobacco manufacturers and distributors doing business in Georgia, smokers who would pay more per pack, and the Georgia Department of Revenue, which would calculate and apply the annual rate adjustment.

Smokers in Georgia would pay significantly more in state tax per pack, and that amount would keep changing yearly based on other states' tax rates rather than staying fixed by statute. Retailers and the Department of Revenue would need to track and apply a rate that shifts annually.

• Section 1 amends O.C.G.A. § 48-11-2(a)(3) to raise the per-pack cigarette tax from 37 cents to $1.37, effective immediately upon enactment.
• Section 1 also directs that beginning January 1, 2026, the tax rate be reset to the national average state cigarette tax as determined by the commissioner.
• Section 1 requires this reset to happen again on the first day of every year after 2026, tying Georgia's rate permanently to the national average.
• Section 2 repeals any other Georgia laws that conflict with these changes.

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

• Samuel Park (D, HD-107)Patrocinador principal
• 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