Increases the cigarette tax from $0.17 per pack of 20 cigarettes to $0.37 per pack or an amount equal to the lowest tax levied by any other state, whichever is less, upon voter approval
Impact
If enacted, this bill would significantly alter the current tax framework governing cigarette sales in Missouri. By updating the tax rate and introducing a mechanism to align with other states, it is positioned to enhance state revenue streams. The revenue collected will primarily support health initiatives, highlighting a commitment to public health funding through effective taxation on tobacco products. This funding intention is aimed at aiding healthcare systems and potentially reducing tobacco-related healthcare costs in the state.
Summary
House Bill 1591 proposes to repeal the existing cigarette tax law and replace it with a new tax structure that levies a cigarette tax of 8.5 mills per cigarette pack. This amount would decrease to 6.5 mills if the General Assembly appropriates a specified percentage of the federal reimbursement allowance. Furthermore, starting January 1, 2027, an additional tax is introduced based on the lowest cigarette tax rate in any other state or 10 mills per cigarette, whichever is lower. The bill aims to generate additional state revenue while providing specific allocations intended for health initiatives.
Contention
Debate surrounding HB 1591 may arise from various stakeholders, including businesses, public health advocates, and legislators. Proponents argue the increase in the cigarette tax could lead to higher funds for health-related projects, benefiting the overall wellbeing of citizens. However, critics may express concerns about the potential economic impact on retailers, along with the implications for smoking rates and public behavior. The bill also necessitates voter approval through a referendum, which may intensify discussions about taxation fairness and public support for tobacco control measures.
Increases the cigarette tax from $0.17 per pack of 20 cigarettes to $0.27 per pack to be used for public education and health care purposes, upon voter approval
Eliminates the retail sale of food from state and local sales and use tax and authorizes certain tax increases to offset lost revenues, subject to voter approval
Authorizes a property tax exemption for certain property used for childcare, contingent upon passage and approval by the voters of a constitutional amendment permitting a property tax exemption.