Text: HF00283                           Text: HF00285
Text: HF00200 - HF00299                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 284

Partial Bill History

Bill Introduced: H.J. 395
Complete Bill History

Bill Text

PAG LIN
  1  1 `Section 1.  Section 453A.6, subsection 1, Code 2003, is
  1  2 amended to read as follows:
  1  3    1.  There is imposed, and shall be collected and paid to
  1  4 the department, the following taxes on all cigarettes used or
  1  5 otherwise disposed of in this state for any purpose
  1  6 whatsoever:
  1  7    Class A.  On cigarettes weighing not more than three pounds
  1  8 per thousand, eighteen mills six and eight-tenths cents on
  1  9 each such cigarette.
  1 10    Class B.  On cigarettes weighing more than three pounds per
  1 11 thousand, eighteen mills six and eight-tenths cents on each
  1 12 such cigarette.
  1 13    Sec. 2.  Section 453A.43, subsection 1, unnumbered
  1 14 paragraph 1, Code 2003, is amended to read as follows:
  1 15    A tax is imposed upon all tobacco products in this state
  1 16 and upon any person engaged in business as a distributor of
  1 17 tobacco products, at the rate of twenty-two fifty-five percent
  1 18 of the wholesale sales price of the tobacco products, except
  1 19 little cigars as defined in section 453A.42.  Little cigars
  1 20 shall be subject to the same rate of tax imposed upon
  1 21 cigarettes in section 453A.6, payable at the time and in the
  1 22 manner provided in section 453A.6; and stamps shall be affixed
  1 23 as provided in division I of this chapter.  The tax on tobacco
  1 24 products, excluding little cigars, shall be imposed at the
  1 25 time the distributor does any of the following:
  1 26    Sec. 3.  Section 453A.43, subsection 2, unnumbered
  1 27 paragraph 1, Code 2003, is amended to read as follows:
  1 28    A tax is imposed upon the use or storage by consumers of
  1 29 tobacco products in this state, and upon the consumers, at the
  1 30 rate of twenty-two fifty-five percent of the cost of the
  1 31 tobacco products.  
  1 32                           EXPLANATION
  1 33    This bill increases the tax on cigarettes and tobacco
  1 34 products.  The bill increases the tax on cigarettes from 1.8
  1 35 cents per cigarette to 6.8 cents per cigarette.  The bill also
  2  1 changes the use of mills in assessing the tax to the use of
  2  2 cents.  One mill equals one one-thousandth of a cent.  The
  2  3 effect of the bill, as an example, is to increase the tax on a
  2  4 pack of 20 cigarettes from $.36 per pack to $1.36 per pack.
  2  5 Additionally, the bill increases the tax on tobacco products
  2  6 from 22 percent of the wholesale sales price for distributors
  2  7 and 22 percent of the cost of tobacco products for the use or
  2  8 storage by consumers of tobacco products to 55 percent of the
  2  9 wholesale sales price and of the cost.  Fifty-five percent of
  2 10 the wholesale sales price and of the cost is roughly
  2 11 equivalent to the cigarette tax of $1.36 per pack as a
  2 12 percentage of the manufacturer's price.  
  2 13 LSB 2494HH 80
  2 14 pf/pj/5

Text: HF00283                           Text: HF00285
Text: HF00200 - HF00299                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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