2018 Session

Budget Amendments - SB30 (Member Request)

Chief Patron: Hanger
Cigarette Tax Study (language only)

Item 3-5.16 #4s

Item 3-5.16 #4s

Adjustments and Modifications to Tax Collections
Tobacco Tax Study


Page 469, after line 13, insert:


The Joint Subcommittee to Evaluate Tax Preferences is hereby directed to study options for the modernization of § 58.1-1001(A), Code of Virginia, to reflect advances in science and technology in the area of tobacco harm reduction, and the role innovative non-combustible tobacco products can play in reducing harm, including products that produce vapor or aerosol from heating tobacco or liquid nicotine. In addition, the Joint Subcommittee shall study possible reforms to the taxation of tobacco products that will provide fairness and equity for all local governments and also ensure stable tax revenues for the Commonwealth. The Joint Subcommittee shall complete its study and submit a final report with recommended reforms to the Finance Committees of the Virginia Senate and Virginia House of Delegates by November 1, 2018. All agencies of the Commonwealth shall provide assistance for this study, upon request.

Notwithstanding any other provision of law, no governmental instrumentality shall levy or collect any excise tax under Title 58.1, Code of Virginia, otherwise imposed upon any product as to which an order has been issued by the Secretary of the United States Department of Health and Human Services pursuant to 21 USC 387k(g)(1) or (g)(2)."


(This amendment would direct the Joint Subcommittee to Evaluate Tax Preferences to conduct a study and recommend reforms to the cigarette tax.)