2020 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Gilbert
Utilize Increased Tobacco Tax Revenues for Taxpayer Relief Fund (language only)

Item 3-5.21 #2h

Item 3-5.21 #2h

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


Page 526, after line 38, insert:

"D. Notwithstanding the provisions of § 32.1-366, Code of Virginia, an amount equal to 0.75 cents on each cigarette sold shall be deposited to the Taxpayer Relief Fund established pursuant to the 5th enactment of Chapters 17 and 18, 2019 Acts of Assembly and shall be used to effectuate further taxpayer relief to alleviate the unintended state income tax increases affecting Virginia's citizens as a result of changes to federal tax law under the provisions of the Tax Cuts and Jobs Act of 2018."


(This amendment transfers one-half of the proposed 15 cents per pack increase in the tax on cigarettes from the Health Care Fund to the Taxpayer Relief Fund in each year of the biennium. This is anticipated to generate approximately $125.0 million over the two fiscal years.)