House File 283

                                       HOUSE FILE       
                                       BY  SHOULTZ


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to increasing the tax on cigarettes and tobacco
  2    products.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2402HH 80
  5 pf/pj/5

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 four and nine=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 four and nine=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 twenty=five
  1 18 percent of the wholesale sales price of the tobacco products,
  1 19 except little cigars as defined in section 453A.42.  Little
  1 20 cigars 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 2, 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 twenty=five percent of the cost of the
  1 31 tobacco products.
  1 32                           EXPLANATION
  1 33    This bill increases the tax on cigarettes from 1.8 cents
  1 34 per cigarette to 4.9 cents per cigarette.  The bill also
  1 35 increases the tax on tobacco products from 22 percent of the
  2  1 wholesale sales price to 25 percent of the wholesale sales
  2  2 price.
  2  3 LSB 2402HH 80
  2  4 pf/pj/5