Chief Patron: Hope
Increase Cigarette and OTP Taxes (language only)

Item 3-5.21 #3h

Language

Page 526, line 31, strike "3.0" and insert "9.0"

Page 526, line 33, after "liquid nicotine" insert:

"and other tobacco products".

Page 526, line 33, after "of" strike "$0.066 per milliliter" and insert:

"39 percent of the manufacturer's sales price".

Page 526, after line 38, insert:

"D. The revenue generated by the additional taxes imposed on cigarettes on and after August 1, 2004, shall be collected by the Department of Taxation and allocated as follows:

1. 16.67 percent to the Virginia Health Care Fund established pursuant to § 32.1-366;

2. 3.32 percent to the Department of Health for its costs related to Quit Now Virginia or any successor program with the purpose of providing free information and coaching to residents who want to quit smoking or using tobacco;

3.  3.32 percent to the Virginia Foundation for Healthy Youth to fund initiatives to prevent or reduce youth tobacco use;

4. 0.82 percent to the Department of Behavioral Health and Developmental Services to fund initiatives to educate merchants on the laws governing the sale of tobacco products; and

5. 75.87 percent to the general fund.

E. The revenue generated by the additional taxes on liquid nicotine and other tobacco products on and after August 1, 2004, shall be collected by the Department of Taxation and allocated as follows:

1. 25.64 percent to the Virginia Health Care Fund established pursuant to § 32.1-366;

2. 2.97 percent to the Department of Health for its costs related to Quit Now Virginia or any successor program with the purpose of providing free information and coaching to residents who want to quit smoking or using tobacco;

3.  2.97 percent to the Virginia Foundation for Healthy Youth to fund initiatives to prevent or reduce youth tobacco use;

4. 0.74 percent to the Department of Behavioral Health and Developmental Services to fund initiatives to educate merchants on the laws governing the sale of tobacco products; and

5. 67.68 percent to the general fund."