2004 Special Session I

Budget Amendments - SB5001 (Committee Approved)

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"Virginia Investment Act" - Cigarette Tax Revenues

Item 326 #48s

Item 326 #48s

First Year - FY2005 Second Year - FY2006
Health And Human Resources
Medical Assistance Services, Department of FY2005 $21,800,000 FY2006 ($76,400,000) GF
FY2005 ($21,800,000) FY2006 $76,400,000 NGF

Page 264, line 46, strike "$310,700,000" and insert "$288,900,000".
Page 264, line 46, strike "$276,300,000" and insert "$352,700,000".

(This amendment provides an increase of $21.8 million GF the first year and a decrease of $76.4 million GF the second year and a decrease of $21.8 million NGF the first year and an increase of $76.4 million NGF the second year as a result of different approaches to taxing cigarettes and tobacco products reflected in the introduced bill and Senate Bill 465. Whereas the introduced bill raised cigarette taxes to 25 cents per pack effective July 1, 2004, Senate Bill 465 raises cigarette taxes to 20 cents per pack on July 1, 2004 and 35 cents per pack on July 1 2005. Senate Bill 465 also imposes a tax on tobacco products. The amendment also adjusts budget language decreasing the first year deposit into the Virginia Health Care Fund by $21.8 million and increasing the second year deposit by $76.4 million).