Date Requested:March 31, 2005
Time Requested:02:33 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1066 Intro HB2661
CBD Subject: Flavored Cigarettes
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to prohibit the sale of candy or fruit-flavored cigarettes in this state.
    
    The passage of this bill may result in a minimal revenue loss to the General Revenue Fund. Sales of these cigarettes would be subject to the Cigarette Excise Tax and the Consumers Sales Tax.
    
    There would be no additional administrative costs to the Tax Department.
    
Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")		 2006
Increase/Decrease
(use"-")		 Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    The passage of this bill may result in a minimal revenue loss to the General Revenue Fund. Sales of these cigarettes would be subject to the Cigarette Excise Tax and the Consumers Sales Tax.
    
    There would be no additional administrative costs to the Tax Department.
    

Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is to prohibit the sale of candy or fruit-flavored cigarettes in this state.
    
    Fruit and candy-flavored tobacco cigarettes are legal tobacco products in the United States. There is a concern that prohibiting possession by any person of these tobacco products may be in violation of the Commerce Clause of the Constitution of the United States.
    
    Additionally, the bill states that the introduction of these tobacco products in this State will entice children to try smoking. West Virginia Code ยง16-9A-1 et seq. already contains considerable prohibitions relating to providing, giving or selling tobacco products to minors.