Georgia House Bill HB191

Georgia 2023-2024 Regular Session

• Introduced: 2/1/23

Caption

Revenue and taxation; pack of cigarettes; increase rate of tax

Impact

The implementation of HB 191 is expected to have significant implications for state laws regarding the taxation of tobacco products. By increasing the excise tax, the bill aims to deter tobacco use among the population, especially among youth, while simultaneously fostering a revenue stream dedicated to healthcare initiatives. The involvement of tax revenues in healthcare funding emphasizes the link between tobacco use and public health budgets, allowing for potentially enhanced prevention programs and treatment services for tobacco-related diseases.

Summary

House Bill 191 proposes an increase in the excise tax rate on the sale of cigarettes and other tobacco products in Georgia. The bill specifically raises the tax on a pack of cigarettes from 37 cents to 57 cents, with the intention to use the new revenue generated for healthcare purposes. The revised tax rates aim to encompass various tobacco and vapor products, ensuring that they contribute to state revenue that is earmarked to address healthcare issues affecting residents of Georgia. This adjustment is part of ongoing efforts to mitigate health concerns associated with tobacco consumption and to generate funds for healthcare improvements.

Contention

However, the bill has faced some contention regarding its potential effects on local businesses and the tobacco industry as a whole. Opponents may argue that increasing taxes could drive consumers to seek cheaper alternatives or purchase tobacco products from states with lower taxes, ultimately affecting local retailers. Furthermore, concerns are raised about the effectiveness of tax increases in actually reducing smoking rates, with some critics suggesting that comprehensive public health campaigns might be needed in conjunction with tax measures to achieve desired health outcomes.