Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2011

Governor's Budget Recommendation FY 2011

Outside Section 17



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Extend Cigarette Excise Rate to Cigars and Tobacco

SECTION 17.   (A) Section 7B of chapter 64C of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by adding the following subsection:-

(m) In addition to the excise imposed by subsection (b), an excise shall be imposed on all cigars weighing more than 3 pounds per 1,000 units held in the commonwealth at the rate of 80 per cent of the wholesale price of that product. In addition to the excise imposed by subsection (b), an excise shall be imposed on all smoking tobacco held in the commonwealth at the rate of 90 per cent of the wholesale price of that product.

(B) Section 7C of said chapter 64C is hereby amended by striking out in line 17, the word "twenty-five" and inserting in place thereof the following figure:- 45.

(C) Subsection (A) shall apply to sales of cigars and smoking tobacco occurring on or after the first day of the calendar quarter that begins at least 30 days after passage.

(D) Subsection (B) shall apply to sales of smokeless tobacco occurring on or after the first day of the calendar month that begins at least 30 days after passage.

(E) Notwithstanding section 28 of chapter 64C of the General Laws, the department of revenue shall reasonably determine on a quarterly basis the increase, if any, in the excise amounts collected under sections 7B and 7C of said chapter 64C, that are attributable to the enactment of subsections (A) and (B), respectively. The commissioner shall annually credit any such increased excise amounts to the Commonwealth Care Trust Fund, established in section 2OOO of chapter 29 of the General Laws.
 
 

Summary:
This section extends the 2008 cigarette excise rate to cigars and smoking and smokeless tobacco. The proceeds will be deposited in the Commonwealth Care Trust Fund to support the state's health reform initiatives.



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