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