H.F. 2796 Section 1. Section 453A.6, subsection 1, Code 2026, 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 fourteen and 5 eight-tenths three-tenths cents on each cigarette. 6 Sec. 2. Section 453A.6, subsection 8, paragraph a, Code 7 2026, 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 six and forty-three 10 hundredths cents on each cigarette dispensed from such machine. 11 Payments made under this paragraph shall be remitted to the 12 department electronically. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill increases the cigarette tax from 6.8 cents per 17 cigarette to 14.3 cents per cigarette. The overall tax on a 18 pack of cigarettes (20 cigarettes) goes from $1.36 to $2.86. 19 The bill also raises the tax on loose tobacco products inserted 20 into a vending machine from which assembled cigarettes are 21 dispensed. The tax is increased from 3.06 cents on each 22 cigarette dispensed from the vending machine to 6.43 cents. 23 -1- LSB 5533YH (1) 91 jm/jh 1/ 1