Bill Text: HI SB2422 | 2012 | Regular Session | Amended
Bill Title: Tobacco Products; Tax
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2012-03-20 - (H) Passed Second Reading and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Chang, Herkes, Nakashima, Pine, Tokioka excused (5). [SB2422 Detail]
Download: Hawaii-2012-SB2422-Amended.html
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THE SENATE |
S.B. NO. |
2422 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TOBACCO PRODUCTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that tobacco use continues to be a problem in Hawaii and the United States, causing over 400,000 deaths per year. Illness and death directly related to tobacco consumption costs Hawaii at least $640,000,000 per year. Tobacco products are addictive and inherently dangerous, causing many different types of cancer, heart disease, and other serious illnesses. Hawaii has a substantial interest in reducing the number of individuals of all ages who use tobacco products, and a particular interest in protecting adolescents from tobacco dependence and the illnesses and premature death associated with tobacco use.
The legislature further finds that smokeless tobacco use is a serious health issue in Hawaii. While cigarette use among Hawaii's youth has dramatically decreased, smokeless tobacco use among Hawaii's youth has fluctuated and not steadily decreased. The United States Department of Health and Human Services states, "the oral use of smokeless tobacco represents a significant health risk" noting that it can cause cancer.
The legislature finds that raising the price of tobacco products through state tax increases will prompt a reduction in tobacco use, especially among adolescents and young adults.
The purpose of this Act is to impose an excise tax on tobacco products, other than large cigars, in an effort to curtail tobacco use.
SECTION 2. Section 245-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Every wholesaler or dealer, in addition to any other taxes provided by law, shall pay for the privilege of conducting business and other activities in the State:
(1) An excise tax equal to 5.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 1998, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(2) An excise tax equal to 6.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after September 30, 2002, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(3) An excise tax equal to 6.50 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 2003, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(4) An excise tax equal to 7.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 2004, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(5) An excise tax equal to 8.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after September 30, 2006, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(6) An excise tax equal to 9.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after September 30, 2007, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(7) An excise tax equal to 10.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after September 30, 2008, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(8) An excise tax equal to 13.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after July 1, 2009, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(9) An excise tax equal to 11.00 cents for each little cigar sold, used, or possessed by a wholesaler or dealer on and after October 1, 2009, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(10) An excise tax equal to 15.00 cents for each cigarette or little cigar sold, used, or possessed by a wholesaler or dealer on and after July 1, 2010, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(11) An excise tax equal to 16.00 cents for each cigarette or little cigar sold, used, or possessed by a wholesaler or dealer on and after July 1, 2011, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;
(12) An excise tax equal to seventy per cent of the wholesale price of each article or item
of tobacco products, other than large cigars, sold by the wholesaler or dealer
on and after September 30, 2009, whether or not sold at wholesale, or if not
sold then at the same rate upon the use by the wholesaler or dealer; [and]
(13) An excise tax equal to the greater of seventy per cent of the wholesale price of, or $3.20 for, each article or item of tobacco products, other than large cigars, sold by the wholesaler or dealer on and after September 30, 2012, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer; and
[(13)] (14) An excise tax equal to fifty
per cent of the wholesale price of each large cigar of any length, sold, used,
or possessed by a wholesaler or dealer on and after September 30, 2009, whether
or not sold at wholesale, or if not sold then at the same rate upon the use by
the wholesaler or dealer.
Where the tax imposed has been paid on cigarettes, little cigars, or tobacco products that thereafter become the subject of a casualty loss deduction allowable under chapter 235, the tax paid shall be refunded or credited to the account of the wholesaler or dealer. The tax shall be applied to cigarettes through the use of stamps."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 1, 2050.
Report Title:
Tobacco Products; Tax
Description:
Imposes an excise tax on tobacco products, other than large cigars, that is equal to the greater of 70 percent of the wholesale price of, or $3.20 for, each article or item of tobacco products. Takes effect 1/1/50. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
