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2020 Session

Budget Amendments - SB30 (Member Request)

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Chief Patron: Boysko
SB 852: Tobacco and Cigarette Tax Revenue Allocation (language only)

Item 313 #8s

Item 313 #8s

Health and Human Resources
Department of Medical Assistance Services

Language

Page 295, after line 22, insert:

"3.  Pursuant to legislation on the 2020 session to increase the cigarette tax by $1.50 and the other tobacco products wholesale tax by 29 percent, the new revenue from the cigarette tax increase are to be distributed as follows:

a. 16.67 percent to the Virginia Health Care Fund established under § 32.1-366;
b. 3.32 percent to the Department of Health for its costs relating 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;
c. 3.32 percent to the Virginia Foundation for Healthy Youth to fund initiatives to prevent or reduce youth tobacco use;
d. 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

e. the remainder to the general fund.
4. The new revenue generated by the other tobacco products tax shall be allocated as follows:
a. 25.64 percent to the Virginia Health Care Fund established under § 32.1-366:
b. 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:
c. 2.97 percent to the Virginia Foundation for Healthy Youth to fund initiatives to prevent or reduce youth tobacco use;
d. 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

e. the remainder to the general fund."



Explanation

(This amendment directs the allocation of new revenue from an increase in the cigarette tax from $0.30 cents to $1.80 per pack and for an increase in the tax on other tobacco products by 29 percent pursuant to Senate Bill 852. Estimated increase of revenue is about $270 million a year.)