Text: HF02204 Text: HF02206 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 135.39A HEALTH CARE ACCESS FUND 1 2 ESTABLISHED USES. 1 3 1. A health care access fund is established in the state 1 4 treasury. Two and four-tenths cents of the four and two- 1 5 tenths cents collected of the tax imposed on each cigarette 1 6 pursuant to section 453A.6, subsection 1, shall be deposited 1 7 in the fund. Additionally, of the tax imposed on tobacco 1 8 products pursuant to section 453A.43, subsections 1 and 2, 1 9 fifty percent of the seventy-two percent of the wholesale 1 10 sales price or cost of tobacco products collected shall be 1 11 deposited in the health care access fund. Notwithstanding 1 12 section 8.33, any unexpended balances in the fund at the end 1 13 of each fiscal year shall be retained in the fund. 1 14 Notwithstanding section 12C.7, subsection 2, interest or 1 15 earnings on investments or time deposits of the moneys in the 1 16 fund shall be credited to the fund. 1 17 2. Moneys in the health care access fund shall be used 1 18 only for the purpose of increasing Iowans' access to health 1 19 care. 1 20 Sec. 2. Section 453A.6, subsection 1, Code 2001, is 1 21 amended to read as follows: 1 22 1. There is imposed, and shall be collected and paid to 1 23 the department, the following taxes on all cigarettes used or 1 24 otherwise disposed of in this state for any purpose 1 25 whatsoever: 1 26 CLASS A. On cigarettes weighing not more than three pounds 1 27 per thousand,eighteen millsfour and two-tenths cents on each 1 28 such cigarette. 1 29 CLASS B. On cigarettes weighing more than three pounds per 1 30 thousand,eighteen millsfour and two-tenths cents on each 1 31 such cigarette. 1 32 Sec. 3. Section 453A.43, subsections 1 and 2, Code 2001, 1 33 are amended to read as follows: 1 34 1. A tax is imposed upon all tobacco products in this 1 35 state and upon any person engaged in business as a distributor 2 1 of tobacco products, at the rate oftwenty-twoseventy-two 2 2 percent of the wholesale sales price of the tobacco products, 2 3 except little cigars as defined in section 453A.42. Little 2 4 cigars shall be subject to the same rate of tax imposed upon 2 5 cigarettes in section 453A.6, payable at the time and in the 2 6 manner provided in section 453A.6; and stamps shall be affixed 2 7 as provided in division I of this chapter. The tax on tobacco 2 8 products, excluding little cigars, shall be imposed at the 2 9 time the distributor does any of the following: 2 10 a. Brings, or causes to be brought, into this state from 2 11 without the state tobacco products for sale. 2 12 b. Makes, manufactures, or fabricates tobacco products in 2 13 this state for sale in this state. 2 14 c. Ships or transports tobacco products to retailers in 2 15 this state, to be sold by those retailers. 2 16 2. A tax is imposed upon the use or storage by consumers 2 17 of tobacco products in this state, and upon the consumers, at 2 18 the rate oftwenty-twoseventy-two percent of the cost of the 2 19 tobacco products. 2 20 The tax imposed by this subsection shall not apply if the 2 21 tax imposed by subsection 1 on the tobacco products has been 2 22 paid. 2 23 This tax shall not apply to the use or storage of tobacco 2 24 products in quantities of: 2 25 a. Less than 25 cigars. 2 26 b. Less than 10 oz. snuff or snuff powder. 2 27 c. Less than 1 lb. smoking or chewing tobacco or other 2 28 tobacco products not specifically mentioned herein, in the 2 29 possession of any one consumer. 2 30 EXPLANATION 2 31 This bill increases the tax on cigarettes from 1.8 cents 2 32 per cigarette to 4.2 cents per cigarette. The bill also 2 33 changes the use of mills in assessing the tax to the use of 2 34 cents. One mill equals one one-thousandth of a cent. The 2 35 effect of the bill, as an example, is to increase the tax on a 3 1 pack of 20 cigarettes from 36 cents per pack to 86 cents per 3 2 pack. Additionally, the bill increases the tax on tobacco 3 3 products from 22 percent of the wholesale sales price for 3 4 distributors and 22 percent of the cost of tobacco products 3 5 for the use or storage by consumers of tobacco products to 72 3 6 percent of the wholesale sales price and of the cost. Of the 3 7 72 percent of the wholesale sales price and of the cost 3 8 collected, 50 percent is to be deposited in the health care 3 9 access fund. 3 10 The bill establishes a health care access fund in the state 3 11 treasury. Two and four-tenths cents per cigarette of the 4.2 3 12 cents per cigarette collected from the cigarette tax and 50 3 13 percent of the 72 percent of the wholesale sales price or cost 3 14 of the tobacco products collected from the tax on tobacco 3 15 products are to be deposited in the health care access fund. 3 16 Moneys in the fund are to be used solely for the purpose of 3 17 increasing Iowans' access to health care. 3 18 LSB 5778HH 79 3 19 pf/sh/8
Text: HF02204 Text: HF02206 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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