Whereas, the health of the citizens of the State of Maine is of paramount interest; and

Whereas, this legislation provides a source of funding for health care programs integral to the health of Maine citizens; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §4365, as amended by PL 2003, c. 705, §6, is further amended to read:

§4365. Rate of tax

A tax is imposed on all cigarettes imported into this State or held in this State by any person for sale at the rate of 47 125 mills for each cigarette. Payment of the tax is evidenced by the affixing of stamps to the packages containing the cigarettes.

Sec. 2. 36 MRSA §4365-E, as enacted by PL 2001, c. 439, Pt. SSSS, §2, is repealed.

Sec. 3. 36 MRSA §4365-F is enacted to read:

§4365-F.__Application of cigarette tax rate increase effective

July 1, 2005

The following provisions apply to cigarettes held for resale on July 1, 2005.

1.__Stamped rate.__Cigarettes stamped at the rate of 50 mills per cigarette and held for resale after June 30, 2005 are subject to tax at the rate of 125 mills per cigarette.

2.__Liability.__A person possessing cigarettes for resale is liable for the difference between the tax rate of 125 mills per cigarette and the tax rate of 50 mills per cigarette in effect before July 1, 2005.__Stamps indicating payment of the tax imposed by this section must be affixed to all packages of cigarettes held for resale as of July 1, 2005, except that cigarettes held in vending machines as of that date do not require that stamp.