Senate Bill No. 362
(By Senators Prezioso, Foster, McCabe and Kessler (Acting President))
[Originating in the Committee on Health and Human Resources;
reported February 18, 2011.]
A BILL to amend and reenact §11-17-3 of the Code of West Virginia, 1931, as amended, relating to increasing the excise tax on cigarettes and all other tobacco products; establishing a special revenue account; and designating where the additional revenues are to be transferred.
Be it enacted by the Legislature of West Virginia:
That §11-17-3 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 17. CIGARETTE TAX ACT.
§11-17-3. Levy of tax; ratio; dedication of proceeds; funds.
(a) Tax on cigarettes. -- For the purpose of providing revenue for the General Revenue Fund of the state, An excise tax is hereby levied and imposed on sales of cigarettes at the rate of fifty-five cents $1.55 on each twenty cigarettes or in like ratio on any part thereof. Only one sale of the same article shall be used in computing the amount of tax due under this subsection.
(b) Tax on tobacco products other than cigarettes. -- Effective the first day of January, two thousand two, An excise tax is hereby levied and imposed on the sale or use of, other than cigarettes, tobacco products at a rate equal to seven 50 percent of the wholesale price of each article or item of tobacco product other than cigarettes sold by the wholesaler or subjobber dealer, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer. Only one sale of the same article shall be used in computing the amount of tax due under this subsection. Revenues received from this tax shall be deposited into the General Revenue Fund.
(c) Effective date. -- The changes set forth herein to this section and section four of this article shall become effective the first day of May two thousand three July 1, 2011.
(d) Of the increase in revenues collected pursuant to this section, $50 million per year for ten years shall be deposited in the West Virginia Retiree Health Benefit Trust Fund created in section two, article sixteen-d, chapter five of this code for the purpose of funding other post-employment benefits and must be held in trust and not expended during the ten year period; $40 million per year for ten years shall be designated to West Virginia Medicaid; adding $6 million annually for tobacco control; $1 million per year for five years shall be designated to the West Virginia University School of Public Health. Any additional monies in the fund are to be expended as follows: 30 percent shall be designated for oral health improvement programming; 30 percent shall be designated for substance abuse prevention and treatment programming; 24 percent shall be designated for in-home elderly care services; and 16 percent shall be designated to fund early childhood development programming.
(e) Each of the funds or programs receiving funds in subsection (d) shall provide a report to the Legislative Oversight Commission on Health and Human Resources Accountability on the use of funds every three years.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.