Analysis

Synopsis:

 House Bill 167 (HB 167) increases the excise tax on cigarettes and tobacco products.

Analysis:

 House Bill 167 (Hb 167) increases the excise on cigarettes and taxes tobacco products at an increased rate. Specifically, the bill:

•	Cigarette Tax (CT), currently $0.10 would double to $0.20 per cigarette. Little cigars are taxed at a rate equal to CT.

•	Tobacco products’ excise tax rate increase from 25% to 83% of the product value. Excluded in tobacco products are cigars, little cigars, e-liquid, and e-cigarettes.

•	E-Liquids (used to produce vapors in e-cigarettes) excise tax rises from 12.5% of the product value to 83%.

•	E-cigarettes increases from $0.50 to $3.32 per cartridge.

•	Tax on cigars (25% of the product value up to $0.50 per unit) is unchanged.


HB 167 proportionately adjusts existing cigarette tax distributions and does not reduce nor expand distributions.  

The effective date of bill is July 1, 2021. 

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