Provides phased-in increases in cigarette tax rate over four-year period.
Impact
This bill will impact state laws by amending the existing tax framework surrounding cigarette sales, directly affecting both distributors and retailers. The increase in tax is expected to raise significant revenue for the State, particularly benefiting the General Fund. Notably, the current law ensures that a portion of the existing cigarette tax revenue is allocated to smoking cessation initiatives and healthcare funding. A4080 does not alter these existing dedications, meaning that additional revenues will also contribute to these vital public health programs.
Summary
Assembly Bill A4080 proposes a phased-in increase in the cigarette tax rate over a four-year period, aiming to enhance state revenue while addressing public health concerns. Under the current law, the tax rate is set at $0.135 per cigarette, which has remained unchanged since 2009. A4080 seeks to incrementally raise this rate, starting from $3.25 per pack in 2024, reaching up to $4.00 per pack by 2027. This strategic increase aligns with efforts to encourage smoking cessation and promote healthier lifestyles among the population.
Contention
While supporters argue that increasing the cigarette tax is a necessary step towards reducing smoking rates and improving public health, opponents may raise concerns about the burden on consumers and the potential impacts on smoking-related businesses. Raising the tax could lead to non-compliance or illegal trade, as consumers might seek cheaper alternatives or purchase cigarettes from outside the state. These points of contention are critical as legislators weigh the potential benefits against the negative economic implications for both consumers and businesses involved in the sale of tobacco products.
Increases tax rates on certain tobacco products to be on par with tax rate imposed on cigarettes under cigarette tax; dedicates revenue for smoking and tobacco use cessation programs.
Revises requirements for sale of tobacco and vapor products; increases penalties for prohibited sales; increases fees for cigarette and vapor business licensure.
Revises requirements for sale of tobacco and vapor products; increases penalties for prohibited sales; increases fees for cigarette and vapor business licensure.
Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.
Concerns cigarette manufacturers and production of certain tobacco products using roll-your-own tobacco machines at retail establishments within this State.
Concerns cigarette manufacturers and production of certain tobacco products using roll-your-own tobacco machines at retail establishments within this State.
Amending the Kansas cigarette and tobacco products act to raise the minimum age to 21 years old for the sale, purchase or possession of cigarettes, electronic cigarettes or tobacco products.
Increasing the required age to 21 to purchase or possess cigarettes and tobacco products including electronic cigarettes and establishing unlawful acts under the Kansas cigarette and tobacco products act and penalties for violations thereof.
Requiring a manufacturer of electronic cigarettes to certify annually under penalty of perjury that the manufacturer has received marketing authorization from the United States food and drug administration for the electronic cigarettes, establishing annual fees, requiring the department of revenue to maintain a website directory containing a list of all electronic cigarette manufacturers and certified electronic cigarettes and establishing civil and criminal penalties for violations.