House File 297 - Introduced HOUSE FILE BY HEATON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing that any increase in the tax on cigarettes and 2 tobacco products be deposited into the healthy Iowans tobacco 3 trust. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1779YH 82 6 pf/cf/24 PAG LIN 1 1 Section 1. Section 12.65, subsection 1, Code 2007, is 1 2 amended to read as follows: 1 3 1. A healthy Iowans tobacco trust is created in the office 1 4 of the treasurer of state. Moneys transferred to the healthy 1 5 Iowans tobacco trust from the endowment for Iowa's health 1 6 account of the tobacco settlement trust fund established in 1 7 section 12E.12, proceeds derived from any increase in the 1 8 amount of the tax levied on cigarettes pursuant to section 1 9 453A.6, subsection 1, above eighteen mills per cigarette, the 1 10 proceeds derived from any increase in the amount of the tax 1 11 levied on tobacco products pursuant to section 453A.43, 1 12 subsection 1, above twenty=two percent of the wholesale sales 1 13 price of the tobacco products, the proceeds derived from any 1 14 increase in the amount of the tax levied on the use or storage 1 15 by consumers of tobacco products pursuant to section 453A.43, 1 16 subsection 2, above twenty=two percent of the cost of the 1 17 tobacco products, and moneys appropriated or transferred from 1 18 any other source shall be deposited in the healthy Iowans 1 19 tobacco trust. 1 20 Sec. 2. Section 453A.35, Code 2007, is amended to read as 1 21 follows: 1 22 453A.35 TAX AND FEES PAID TO GENERAL FUND. 1 23 The proceeds derived from the sale of stamps and the 1 24 payment of taxes, fees, and penalties provided for under this 1 25 chapter, and the permit fees received from all permits issued 1 26 by the department, with the exception of the proceeds derived 1 27 from any increase in the amount of the tax levied on 1 28 cigarettes pursuant to section 453A.6, subsection 1, above 1 29 eighteen mills per cigarette, the proceeds derived from any 1 30 increase in the amount of the tax levied on tobacco products 1 31 pursuant to section 453A.43, subsection 1, above twenty=two 1 32 percent of the wholesale sales price of the tobacco products, 1 33 and the proceeds derived from any increase in the amount of 1 34 the tax levied on the use or storage by consumers of tobacco 1 35 products pursuant to section 453A.43, subsection 2, above 2 1 twenty=two percent of the cost of the tobacco products which 2 2 shall be deposited into the healthy Iowans tobacco trust 2 3 created in section 12.65, shall be credited to the general 2 4 fund of the state. All permit fees provided for in this 2 5 chapter and collected by cities in the issuance of permits 2 6 granted by the cities shall be paid to the treasurer of the 2 7 city where the permit is effective, or to another city officer 2 8 as designated by the council, and credited to the general fund 2 9 of the city. Permit fees so collected by counties shall be 2 10 paid to the county treasurer. 2 11 EXPLANATION 2 12 This bill provides that any proceeds derived from any 2 13 increase in the amount of the tax levied on cigarettes above 2 14 18 mills or 1.8 cents per cigarette, any proceeds derived from 2 15 any increase in the amount of the tax levied on tobacco 2 16 products above 22 percent of the wholesale sales price of the 2 17 tobacco products, and any proceeds derived from any increase 2 18 in the amount of the tax levied on the use or storage by 2 19 consumers of tobacco products above 22 percent of the cost of 2 20 the tobacco products, is to be deposited into the healthy 2 21 Iowans tobacco trust. The purposes for which moneys in the 2 22 healthy Iowans tobacco trust may be used are purposes related 2 23 to health care, substance abuse treatment and enforcement, 2 24 tobacco use prevention and control, and other purposes related 2 25 to the needs of children, adults, and families in the state. 2 26 Under current law, proceeds from these sources are deposited 2 27 in the general fund of the state. 2 28 LSB 1779YH 82 2 29 pf:nh/cf/24