HF 2796 (LSB 5533YH (1) 91)

HOUSE FILE 2796

BY  CROKEN

A BILL FOR

An Act increasing the tax on cigarettes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 453A.6, subsection 1, Code 2026, is amended to read as follows:
   1.  There is imposed, and shall be collected and paid to the department, a tax on all cigarettes used or otherwise disposed of in this state for any purpose equal to six fourteen and eight-tenths three-tenths cents on each cigarette.
    Sec. 2.  Section 453A.6, subsection 8, paragraph a, Code 2026, is amended to read as follows:
   a.  Pay directly to the department, in lieu of the tax under subsection 1, a tax equal to three and six six and forty-three hundredths cents on each cigarette dispensed from such machine. Payments made under this paragraph shall be remitted to the department electronically.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill increases the cigarette tax from 6.8 cents per cigarette to 14.3 cents per cigarette. The overall tax on a pack of cigarettes (20 cigarettes) goes from $1.36 to $2.86. The bill also raises the tax on loose tobacco products inserted into a vending machine from which assembled cigarettes are dispensed. The tax is increased from 3.06 cents on each cigarette dispensed from the vending machine to 6.43 cents.