House File 237 - Introduced
HOUSE FILE
BY MASCHER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act increasing the taxes imposed on cigarettes and providing
2 for appropriation of the revenue generated to the medical
3 assistance program and for tobacco control and prevention, and
4 providing an effective date.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 2341HH 81
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PAG LIN
1 1 Section 1. Section 453A.6, subsection 1, Code 2005, 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: a tax of ten cents on each cigarette.
1 7 CLASS A. On cigarettes weighing not more than three pounds
1 8 per thousand, eighteen mills on each such cigarette.
1 9 CLASS B. On cigarettes weighing more than three pounds per
1 10 thousand, eighteen mills on each such cigarette.
1 11 Sec. 2. Section 453A.35, Code 2005, is amended to read as
1 12 follows:
1 13 453A.35 TAX AND FEES PAID TO GENERAL FUND.
1 14 The proceeds derived from the sale of stamps and the
1 15 payment of taxes, fees and penalties provided for under this
1 16 chapter, and the permit fees received from all permits issued
1 17 by the department, with the exception of the proceeds derived
1 18 from payment of taxes pursuant to section 453A.6, subsection
1 19 1, shall be credited to the general fund of the state. All
1 20 permit fees provided for in this chapter and collected by
1 21 cities in the issuance of permits granted by the cities shall
1 22 be paid to the treasurer of the city where the permit is
1 23 effective, or to another city officer as designated by the
1 24 council, and credited to the general fund of the city. Permit
1 25 fees so collected by counties shall be paid to the county
1 26 treasurer.
1 27 Sec. 3. NEW SECTION. 453A.35A MEDICAL ASSISTANCE FUND ==
1 28 TAX REVENUE DEPOSITED == APPROPRIATION.
1 29 1. A medical assistance and tobacco control and prevention
1 30 fund is created in the office of the treasurer of state. The
1 31 fund consists of the revenues generated from the taxes imposed
1 32 on cigarettes pursuant to section 453A.6, subsection 1.
1 33 Moneys in the fund shall be used only as specified in this
1 34 section and are appropriated for the uses specified. Moneys
1 35 deposited in the fund are not subject to section 8.33 and
2 1 shall not be transferred, used, obligated, appropriated, or
2 2 otherwise encumbered, except as provided in this section.
2 3 Notwithstanding section 12C.7, subsection 2, interest or
2 4 earnings on moneys deposited in the fund shall be credited to
2 5 the fund.
2 6 2. Moneys in the fund are appropriated for the fiscal year
2 7 beginning July 1, 2005, and for each fiscal year thereafter,
2 8 as follows:
2 9 a. To the department of human services, an amount
2 10 necessary, annually, for expenses incurred under the medical
2 11 assistance program.
2 12 b. To the Iowa department of public health, an amount
2 13 necessary, annually, for expenses relating to tobacco control
2 14 and prevention within the state.
2 15 Sec. 4. EFFECTIVE DATE. This Act, being deemed of
2 16 immediate importance, takes effect on the first day of the
2 17 month that begins following enactment.
2 18 EXPLANATION
2 19 This bill relates to an increase in the taxes imposed on
2 20 cigarettes and to the deposit and appropriation of the revenue
2 21 generated.
2 22 The bill provides for a tax on cigarettes of 10 cents on
2 23 each cigarette. The effect of the bill is to increase the tax
2 24 on a pack of 20 cigarettes from 36 cents per pack to $2.00 per
2 25 pack.
2 26 The bill provides that the revenue generated (the 10 cents
2 27 per cigarette) is to be deposited in the medical assistance
2 28 and tobacco control and prevention fund created in the bill.
2 29 The bill provides that moneys in the fund are appropriated for
2 30 the fiscal year beginning July 1, 2005, and annually
2 31 thereafter, to the department of human services, an amount
2 32 necessary, annually, for expenses incurred under the medical
2 33 assistance program and to the Iowa department of public
2 34 health, an amount necessary, annually, for expenses relating
2 35 to tobacco control and prevention within the state.
3 1 LSB 2341HH 81
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