2020 Special Session I

Budget Amendments - SB5015 (Committee Approved)

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Adjust Health Care Fund for Tobacco Tax Modifications

Item 313 #4s

Item 313 #4s

First Year - FY2021 Second Year - FY2022
Health and Human Resources
Department of Medical Assistance Services FY2021 ($625,000) FY2022 ($2,500,000) GF
FY2021 $625,000 FY2022 $2,500,000 NGF


Page 112, line 32, strike "$472,802,840" and insert "$473,427,840".

Page 112, line 33, strike "$486,936,557" and insert "$489,436,557".


(This amendment reflects the additional revenue estimated at $625,000 the first year and $1.5 million the second year from the Other Tobacco Products tax through the application of nexus standards for out-of-state dealers. The introduced budget for the Special Session included language clarifying the policy but did not include a revenue estimate. In addition, revenue of $1.0 million the second year is assumed for the provision included in the introduced budget applying the tobacco products tax to heated tobacco products at a rate of 2.25 cents per stick beginning January 1, 2021. The introduced budget assumed no additional revenue from this policy change. This amendment captures the revenue, which is deposited to the Health Care Fund that supports the state match for Medicaid. Therefore, the increase in revenue offsets state general funds that are otherwise required to fund the Medicaid program.)