House
File
364
-
Introduced
HOUSE
FILE
364
BY
MASCHER
A
BILL
FOR
An
Act
relating
to
cigarettes
and
tobacco
products,
including
1
increased
taxation
of
such
products.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2247YH
(2)
88
pf/jh
H.F.
364
Section
1.
Section
453A.6,
subsection
1,
Code
2019,
is
1
amended
to
read
as
follows:
2
1.
There
is
imposed,
and
shall
be
collected
and
paid
to
the
3
department,
a
tax
on
all
cigarettes
used
or
otherwise
disposed
4
of
in
this
state
for
any
purpose
equal
to
six
and
eight-tenths
5
fourteen
and
three-tenths
cents
on
each
cigarette.
6
Sec.
2.
Section
453A.6,
subsection
8,
paragraph
a,
Code
7
2019,
is
amended
to
read
as
follows:
8
a.
Pay
directly
to
the
department,
in
lieu
of
the
tax
under
9
subsection
1
,
a
tax
equal
to
three
and
six
hundredths
four
10
and
four-tenths
cents
on
each
cigarette
dispensed
from
such
11
machine.
12
Sec.
3.
Section
453A.43,
Code
2019,
is
amended
to
read
as
13
follows:
14
453A.43
Tax
on
tobacco
products.
15
1.
a.
A
tax
is
imposed
upon
all
tobacco
products
in
16
this
state
and
upon
any
person
engaged
in
business
as
a
17
distributor
of
tobacco
products,
at
the
rate
of
twenty-two
18
sixty-seven
percent
of
the
wholesale
sales
price
of
the
tobacco
19
products
,
except
little
cigars
and
snuff
as
defined
in
section
20
453A.42
.
Notwithstanding
the
rate
of
the
tax
imposed
under
21
this
paragraph
“a”
on
tobacco
products,
little
cigars
shall
22
be
subject
to
the
tax
as
specified
pursuant
to
paragraph
“b”
,
23
and
snuff
shall
be
subject
to
the
tax
as
specified
pursuant
to
24
paragraph
“c”
.
25
b.
In
addition
to
the
tax
imposed
under
paragraph
“a”
,
a
26
tax
is
imposed
upon
all
tobacco
products
in
this
state
and
upon
27
any
person
engaged
in
business
as
a
distributor
of
tobacco
28
products,
at
the
rate
of
twenty-eight
percent
of
the
wholesale
29
sales
price
of
the
tobacco
products,
except
little
cigars
and
30
snuff
as
defined
in
section
453A.42
.
31
c.
Notwithstanding
the
rate
of
tax
imposed
pursuant
to
32
paragraphs
“a”
and
“b”
,
if
the
tobacco
product
is
a
cigar,
the
33
total
amount
of
the
tax
imposed
pursuant
to
paragraphs
“a”
and
34
“b”
combined
shall
not
exceed
fifty
cents
per
cigar.
35
-1-
LSB
2247YH
(2)
88
pf/jh
1/
4
H.F.
364
d.
b.
Little
cigars
shall
be
subject
to
the
same
rate
of
1
tax
imposed
upon
cigarettes
in
section
453A.6
,
payable
at
the
2
time
and
in
the
manner
provided
in
section
453A.6
;
and
stamps
3
shall
be
affixed
as
provided
in
subchapter
I
of
this
chapter
.
4
c.
Snuff
shall
be
subject
to
the
tax
as
provided
in
5
subsections
3
and
4
.
6
e.
d.
The
taxes
on
tobacco
products
,
excluding
little
7
cigars
and
snuff,
shall
be
imposed
at
the
time
the
distributor
8
does
any
of
the
following:
9
(1)
Brings,
or
causes
to
be
brought,
into
this
state
from
10
outside
the
state
tobacco
products
for
sale.
11
(2)
Makes,
manufactures,
or
fabricates
tobacco
products
in
12
this
state
for
sale
in
this
state.
13
(3)
Ships
or
transports
tobacco
products
to
retailers
in
14
this
state,
to
be
sold
by
those
retailers.
15
2.
a.
A
tax
is
imposed
upon
the
use
or
storage
by
consumers
16
of
tobacco
products
in
this
state,
and
upon
the
consumers,
at
17
the
rate
of
twenty-two
sixty-seven
percent
of
the
cost
of
the
18
tobacco
products.
19
b.
In
addition
to
the
tax
imposed
in
paragraph
“a”
,
a
tax
20
is
imposed
upon
the
use
or
storage
by
consumers
of
tobacco
21
products
in
this
state,
and
upon
the
consumers,
at
a
rate
of
22
twenty-eight
percent
of
the
cost
of
the
tobacco
products.
23
c.
Notwithstanding
the
rate
of
tax
imposed
pursuant
to
24
paragraphs
“a”
and
“b”
,
if
the
tobacco
product
is
a
cigar,
the
25
total
amount
of
the
tax
imposed
pursuant
to
paragraphs
“a”
and
26
“b”
combined
shall
not
exceed
fifty
cents
per
cigar.
27
d.
b.
The
taxes
imposed
by
this
subsection
shall
not
apply
28
if
the
taxes
imposed
by
subsection
1
on
the
tobacco
products
29
have
been
paid.
30
e.
c.
The
taxes
imposed
under
this
subsection
shall
not
31
apply
to
the
use
or
storage
of
tobacco
products
in
quantities
32
of:
33
(1)
Less
than
twenty-five
cigars.
34
(2)
Less
than
one
pound
smoking
or
chewing
tobacco
or
other
35
-2-
LSB
2247YH
(2)
88
pf/jh
2/
4
H.F.
364
tobacco
products
not
specifically
mentioned
herein
in
this
1
chapter
,
in
the
possession
of
any
one
consumer.
2
3.
A
tax
is
imposed
upon
all
snuff
in
this
state
and
upon
3
any
person
engaged
in
business
as
a
distributor
of
snuff
at
4
the
rate
of
one
dollar
and
nineteen
cents
per
ounce,
with
a
5
proportionate
tax
at
the
same
rate
on
all
fractional
parts
of
6
an
ounce
of
snuff
sixty-seven
percent
of
the
wholesale
sales
7
price
or
an
amount
equal
to
the
tax
on
cigarettes
pursuant
to
8
section
453A.6
for
each
one
and
two-tenths
ounces
of
snuff,
9
whichever
is
higher
.
The
tax
shall
be
computed
based
on
the
10
net
weight
listed
by
the
manufacturer.
The
tax
on
snuff
11
shall
be
imposed
at
the
time
the
distributor
does
any
of
the
12
following:
13
a.
Brings
or
causes
to
be
brought
into
this
state
from
14
outside
the
state,
snuff
for
sale.
15
b.
Makes,
manufactures,
or
fabricates
snuff
in
this
state
16
for
sale
in
this
state.
17
c.
Ships
or
transports
snuff
to
retailers
in
this
state,
to
18
be
sold
by
those
retailers.
19
4.
a.
A
tax
is
imposed
upon
the
use
or
storage
by
consumers
20
of
snuff
in
this
state,
and
upon
the
consumers,
at
the
rate
of
21
one
dollar
and
nineteen
cents
per
ounce
with
a
proportionate
22
tax
at
the
same
rate
on
all
fractional
parts
of
an
ounce
of
23
snuff
sixty-seven
percent
of
the
wholesale
sales
price
or
an
24
amount
equal
to
the
tax
on
cigarettes
pursuant
to
section
25
453A.6
for
each
one
and
two-tenths
ounces
of
snuff,
whichever
26
is
higher
.
The
tax
shall
be
computed
based
on
the
net
weight
27
as
listed
by
the
manufacturer.
28
b.
The
tax
imposed
by
this
subsection
shall
not
apply
if
the
29
tax
imposed
by
subsection
3
on
snuff
has
been
paid.
30
c.
The
tax
shall
not
apply
to
the
use
or
storage
of
snuff
in
31
quantities
of
less
than
ten
ounces.
32
5.
Any
tobacco
product
with
respect
to
which
a
tax
has
once
33
been
imposed
under
this
subchapter
shall
not
again
be
subject
34
to
tax
under
this
subchapter
,
except
as
provided
in
section
35
-3-
LSB
2247YH
(2)
88
pf/jh
3/
4
H.F.
364
453A.40
.
1
6.
The
tax
imposed
by
this
section
shall
not
apply
with
2
respect
to
any
tobacco
product
which
under
the
Constitution
3
and
laws
of
the
United
States
may
not
be
made
the
subject
of
4
taxation
by
this
state.
5
7.
The
tax
imposed
by
this
section
shall
be
in
addition
to
6
all
other
occupation
or
privilege
taxes
or
license
fees
now
or
7
hereafter
imposed
by
any
city
or
county.
8
8.
All
excise
taxes
collected
under
this
chapter
by
a
9
distributor
or
any
individual
are
deemed
to
be
held
in
trust
10
for
the
state
of
Iowa.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
relates
to
the
taxes
on
cigarettes
and
tobacco
15
products.
The
bill
increases
the
tax
on
cigarettes
and
tobacco
16
products
that
is
equivalent
on
all
products
to
a
tax
of
$2.68
17
on
a
pack
of
cigarettes.
18
The
bill
increases
the
tax
imposed
on
cigarettes
from
six
and
19
eight-tenths
cents
to
fourteen
and
three-tenths
cents
on
each
20
cigarette,
or
from
$1.36
to
$2.86
per
pack
of
20
cigarettes.
21
The
bill
increases
the
tax
on
cigarettes
assembled
using
22
loose
tobacco
products
that
are
inserted
into
a
vending
machine
23
from
which
assembled
cigarettes
are
dispensed
from
three
and
24
six-hundredths
cents
to
four
and
four-tenths
cents,
which
25
is
equivalent,
based
on
the
weight
of
tobacco
used
for
each
26
cigarette,
to
the
tax
on
packaged
cigarettes.
27
The
bill
increases
the
tax
on
tobacco
products
from
50
28
percent
of
the
wholesale
sales
price
to
67
percent
of
the
29
wholesale
sales
price.
The
bill
eliminates
the
cap
on
the
tax
30
for
cigars
which
was
50
cents
per
cigar.
31
-4-
LSB
2247YH
(2)
88
pf/jh
4/
4