HB 1294-FN-A - AS INTRODUCED
2001 SESSION
09/10
HOUSE BILL 1294-FN-A
This bill reduces the rate of tobacco tax.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01-2096
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand One
AN ACT reducing the tobacco tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tobacco Tax Reduced. Amend RSA 78:7 to read as follows:
78:7 Tax Imposed. A tax upon the retail consumer is hereby imposed at the rate of [52] 49 cents for each package containing 20 cigarettes or at a rate proportional to such rate for packages containing more or less than 20 cigarettes, on all tobacco products sold at retail in this state. The payment of the tax shall be evidenced by affixing stamps to the smallest packages containing the tobacco products in which such products usually are sold at retail. The word "package" as used in this section shall not include individual cigarettes. No tax is imposed on any transactions, the taxation of which by this state is prohibited by the Constitution of the United States.
2 Effective Date. This act shall take effect July 1, 2002.
LBAO
01-2096
8/6/01
HB 1294-FN-A - FISCAL NOTE
AN ACT reducing the tobacco tax.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will decrease state restricted revenue by $4,961,538 in FY 2003 and $4,903,846 in FY 2004. There is no fiscal impact on state, county and local expenditures or county and local revenue.
METHODOLOGY:
The Department projected the decrease from reducing the tobacco tax rate from $.52 to $.49 using the FY 2002-2003 tobacco revenue budget as a base, and on a straight line basis, determined the impact of a $.03 rate decrease.
The Department further assumed an effective date of July 1, 2002, the tax change could be administered without additional cost, increased sales from the tax cut would be minimal, and based on the provisions of RSA 78:32, the entire tax reduction would be absorbed by the Education Trust Fund.
The Department did not project revenue changes beyond the FY 2003-2004 biennium.