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2020 Session

Budget Amendments - HB30 (Floor Approved)

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Clarify Adjustments to Cigarette and Tabacco Taxes (language only)

Item 3-5.21 #1s

Item 3-5.21 #1s

Adjustments and Modifications to Tax Collections
Cigarette Tax and Tax on Liquid Nicotine

Language

Page 526, strike lines 29 through 38 and insert:

"§ 3-5.21 CIGARETTE TAX, TOBACCO PRODUCTS TAX AND TAX ON LIQUID NICOTINE

A. Notwithstanding any other provision of law, the cigarette tax imposed under subsection A of § 58.1-1001 of the Code of Virginia shall be 3.0 cents on each cigarette sold, stored or received on and after July 1, 2020.

B. Notwithstanding any other provision of law, the rates of the tobacco products tax imposed under § 58.1-1021.02 of the Code of Virginia in effect on June 30, 2020 shall be doubled beginning July 1, 2020 for taxable sales or purchases occurring on and after such date.

C. Notwithstanding any other provision of law, the tobacco products tax imposed under § 58.1-1021.02 of the Code of Virginia shall be imposed on liquid nicotine at the rate of $0.066 per milliliter beginning July 1, 2020 for taxable sales or purchases occurring on and after such date.

D. The Tax Commissioner shall establish guidelines and rules for (i) transitional procedures in regard to the increase in the cigarette tax, (ii) implementation of the increased tobacco products tax rates, and (iii) implementation of the tobacco products tax on liquid nicotine pursuant to the provisions of this act. The development of such guidelines and rules by the Tax Commissioner shall be exempt from the provisions of the Administrative Process Act (Code of Virginia § 2.2-4000 et seq.)."



Explanation

(This amendment clarifies language associated with changes in cigarette, tobacco products, and nicotine products. Specifically, this language will increase the cigarette tax from $0.30 per pack of 20 cigarettes to $0.60 per pack, double the rates of the tobacco products tax, and impose the tobacco products tax on liquid nicotine.)