HP0673, LD 945, item 2, Document Text

Amend the bill by striking out everything after the enacting clause and before the summary and inserting the following:

‘Sec. 1. 36 MRSA §4365-F, as enacted by PL 2005, c. 457, Pt. AA, §3 and affected by §8, is repealed.

Sec. 2. 36 MRSA §4365-G is enacted to read:

§ 4365-G. Application of cigarette tax rate increase on or after November 1, 2017

The following provisions apply to cigarettes held for resale on November 1, 2017 to November 1, 2021.

1. Stamped rate. Cigarettes stamped at the rate that applies on October 31st of each year and held for resale after October 31st are subject to tax at the rate specified in this subsection on the immediately following November 1st, as follows:

A. For cigarettes held on October 31, 2017, 115 mills per cigarette;

B. For cigarettes held on October 31, 2018, 130 mills per cigarette;

C. For cigarettes held on October 31, 2019, 145 mills per cigarette;

D. For cigarettes held on October 31, 2020, 160 mills per cigarette; and

E. For cigarettes held on October 31, 2021, 175 mills per cigarette.

2. Liability. A person possessing cigarettes for resale is liable for the difference between the tax rate that applies October 31st and the tax rate that applies on the immediately following November 1st as provided in subsection 1. Stamps indicating payment of the tax imposed by this section must be affixed to all packages of cigarettes held for resale as of November 1st, except that cigarettes held in vending machines as of that date do not require that stamp.

3. Vending machines. Notwithstanding any other provision of this chapter, it is presumed that all cigarette vending machines are filled to capacity on November 1st and the tax imposed by this section must be reported on that basis. A credit against this inventory tax must be allowed for cigarettes stamped at the rate that applies on November 1st per cigarette placed in vending machines before November 1st.

4. Payment. Payment of the tax imposed by this section must be made to the assessor by January 1st of the year after the increase, accompanied by forms prescribed by the assessor.

Sec. 3. 36 MRSA §4366-A, sub-§2, ¶D, as amended by PL 2007, c. 438, §93, is further amended to read:

D. For stamps at the face value of 100 mills, the discount rate is 1.15% . ; and

Sec. 4. 36 MRSA §4366-A, sub-§2, ¶E is enacted to read:

E. For stamps sold at a face value exceeding 100 mills, the assessor shall calculate a discount value that is proportional to the discount value under paragraph D.

Sec. 5. 36 MRSA §4366-E is enacted to read:

§ 4366-E. Additional tax

Beginning November 1, 2017, an additional tax is imposed on all cigarettes imported into this State or held in this State by any person for sale at the rate of 15 mills for each cigarette. The additional tax is increased to 30 mills on November 1, 2018, 45 mills on November 1, 2019, 60 mills on November 1, 2020 and 75 mills on November 1, 2021. The tax imposed under this section must be added to the tax imposed under section 4365 and collected and administered in the same manner as the tax under that section. Payment of the tax is evidenced by the affixing of stamps to the packages containing the cigarettes. Revenue collected under this section must be deposited in a special account to be administered by the Department of Health and Human Services, Maine Center for Disease Control and Prevention for tobacco use prevention and cessation.

Sec. 6. Appropriations and allocations. The following appropriations and allocations are made.

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF

Revenue Services, Bureau of 0002

Initiative: Provides funding to reflect an increase in the cigarette tax of 15 mills per cigarette annually until the total tax reaches 175 mills per cigarette on November 1, 2021.

GENERAL FUND 2017-18 2018-19

All Other
$31,000 $31,000

inline graphic sline.gif

GENERAL FUND TOTAL $31,000 $31,000

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF

DEPARTMENT TOTALS 2017-18 2018-19

GENERAL FUND
$31,000 $31,000

inline graphic sline.gif

DEPARTMENT TOTAL - ALL FUNDS $31,000 $31,000

HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS)

Maine Center for Disease Control and Prevention 0143

Initiative: Appropriates funds for tobacco use prevention and cessation.

GENERAL FUND 2017-18 2018-19

All Other
$8,655,574 $21,617,768

inline graphic sline.gif

GENERAL FUND TOTAL $8,655,574 $21,617,768

HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS)

DEPARTMENT TOTALS 2017-18 2018-19

GENERAL FUND
$8,655,574 $21,617,768

inline graphic sline.gif

DEPARTMENT TOTAL - ALL FUNDS $8,655,574 $21,617,768

SECTION TOTALS 2017-18 2018-19

GENERAL FUND
$8,686,574 $21,648,768

inline graphic sline.gif

SECTION TOTAL - ALL FUNDS $8,686,574 $21,648,768

’

SUMMARY

This amendment phases in the increase in the cigarette tax by 15 mills per year until it reaches 175 mills on November 1, 2021 and provides that the revenue from the additional tax be deposited in a special account to be administered by the Department of Health and Human Services, Maine Center for Disease Control and Prevention for tobacco use prevention and cessation.

This amendment also adjusts the appropriations and allocations to reflect the phasing in of the tax increase as proposed in the amendment.

FISCAL NOTE REQUIRED

(See attached)

HP0673 LD 945	Session - 128th Maine Legislature "", Filing Number , Sponsored by		LR 1860 Item 2
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GENERAL FUND	2017-18	2018-19
All Other	$31,000	$31,000

GENERAL FUND TOTAL	$31,000	$31,000

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
DEPARTMENT TOTALS	2017-18	2018-19

GENERAL FUND	$31,000	$31,000

DEPARTMENT TOTAL - ALL FUNDS	$31,000	$31,000

SECTION TOTALS	2017-18	2018-19

GENERAL FUND	$8,686,574	$21,648,768

SECTION TOTAL - ALL FUNDS	$8,686,574	$21,648,768