HB 1299 -- Tobacco Taxes

Sponsor:  Riback Wilson (25)

This bill requires the levying of additional sales taxes on
cigarettes and tobacco products.  The bill also establishes
various funds which will receive revenues generated by the
additional sales taxes.

In its main provisions, the bill:

(1)  Requires by July 1, 2004, the levying of an additional
cigarette tax of 55 cents per pack and an additional tax on
tobacco products in the amount of 20% of the manufacturer's
invoice price before subtracting discounts and deals;

(2)  Requires revenues generated by the additional sales taxes be
appropriated solely for funding the state Medicaid Program and
the Missouri Senior Rx Program.  The use of this appropriation
begins July 1, 2004, and terminates June 30, 2005;

(3)  Requires the State Treasurer to deposit all revenues
generated from the additional sales taxes into the Health Care
Fund, the Life Sciences Fund, and the Tobacco Prevention Fund
which are created in the state treasury.  The distribution of the
funds will begin July 1, 2005.  The bill specifies the percentage
of revenues deposited into each fund and the uses of the revenues
deposited in each fund;

(4)  Requires the General Assembly to appropriate the funds
generated by the additional taxes.  The bill prohibits any
unexpired balances in the funds from reverting to the credit of
general revenue; and

(5)  Contains various requirements for the awarding and receipt
of grants and contracts which are funded by revenues deposited in
the Life Sciences Fund.

The bill contains an emergency clause.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am